DoD Awards $37.4M Motorola Contract for CNIC ELMR Sustainment Support
Contract Overview
Contract Amount: $37,388,092 ($37.4M)
Contractor: Motorola Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-27
End Date: 2024-09-27
Contract Duration: 458 days
Daily Burn Rate: $81.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CNIC ELMR SUSTAINMENT SUPPORT
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $37.4 million to MOTOROLA SOLUTIONS, INC. for work described as: CNIC ELMR SUSTAINMENT SUPPORT Key points: 1. Contract awarded to Motorola Solutions, Inc. for electronic equipment repair. 2. Significant spending on sustainment support for the CNIC ELMR program. 3. No competition was utilized for this award, raising potential value concerns. 4. The sector is Defense, specifically IT and electronic equipment maintenance.
Value Assessment
Rating: questionable
The contract value of $37.4 million for a 15-month period appears high given the lack of competition. Benchmarking against similar sustainment contracts for electronic equipment is difficult without more data, but the absence of competitive bidding suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive bidding on this $37.4 million contract.
Public Impact
Ensures continued operational readiness of critical communication systems. Supports the Department of Defense's electronic and precision equipment maintenance needs. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for sustainment
- Potential for price inflation
Positive Signals
- Ensures critical system sustainment
- Supports DoD operations
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and sustainment of electronic and precision equipment. Spending benchmarks for such specialized sustainment services can vary widely, but the $37.4 million value for a 15-month period warrants scrutiny, especially without competition.
Small Business Impact
This contract was awarded to Motorola Solutions, Inc., a large business. There is no indication that small businesses were involved in the subcontracting opportunities for this award.
Oversight & Accountability
The lack of competition for this significant contract raises questions about the effectiveness of oversight in ensuring fair and reasonable pricing. Further review by the Defense Contract Audit Agency or relevant oversight bodies may be warranted.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in pricing
- No small business participation evident
Tags
electronic-and-precision-equipment-repai, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to MOTOROLA SOLUTIONS, INC.. CNIC ELMR SUSTAINMENT SUPPORT
Who is the contractor on this award?
The obligated recipient is MOTOROLA SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $37.4 million.
What is the period of performance?
Start: 2023-06-27. End: 2024-09-27.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of adequate competition within a reasonable timeframe. Without specific documentation from the agency, it is difficult to ascertain the precise reasons. However, the lack of competition for a contract of this magnitude suggests a potential failure in market research or strategic planning to foster a competitive environment.
What is the risk of cost overruns or inefficiencies given the sole-source nature of this award?
The primary risk associated with sole-source contracts is the potential for cost overruns and inefficiencies due to the absence of competitive pressure. The contractor may have less incentive to control costs or offer the most competitive pricing. This can lead to the government paying more than necessary for goods or services, impacting overall budget efficiency and taxpayer value.
How does this contract contribute to the overall effectiveness of the CNIC ELMR program?
This contract is crucial for the sustainment and operational readiness of the CNIC ELMR program, which likely involves critical communication or electronic systems. Ensuring these systems are maintained and functional is vital for the program's effectiveness. However, the method of award (sole-source) introduces a risk that the program might not be achieving its objectives at the most cost-effective rate.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102823R0039
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 500 W MONROE ST STE 4400, CHICAGO, IL, 60661
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,388,092
Exercised Options: $37,388,092
Current Obligation: $37,388,092
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-27
Current End Date: 2024-09-27
Potential End Date: 2024-09-27 00:00:00
Last Modified: 2025-05-16
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