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

State: District of Columbia Government Spending

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

Positive Signals

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

Risk Flags

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 MaintenanceElectronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, 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

More Contracts from Motorola Solutions, Inc.

View all Motorola Solutions, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending