DoD awards $64.3M to Motorola Solutions for ELMR sustainment, a sole-source contract

Contract Overview

Contract Amount: $64,291,732 ($64.3M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-25

End Date: 2026-09-27

Contract Duration: 732 days

Daily Burn Rate: $87.8K/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 $64.3 million to MOTOROLA SOLUTIONS, INC. for work described as: CNIC ELMR SUSTAINMENT SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Sustainment support for the ELMR system is critical for defense communications. 3. The contract duration of 732 days suggests a need for ongoing, specialized support. 4. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms. 5. The fixed-price nature of the contract aims to control costs, but competition is key to ensuring value. 6. The award value of $64.3M warrants scrutiny for cost-effectiveness given the lack of competition.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without comparable bids. The fixed-price structure provides some cost certainty, but the absence of competition means the government cannot leverage market forces to secure the best possible price. The award value of over $64 million for approximately two years of sustainment support requires careful justification to ensure it aligns with fair market value for similar specialized electronic equipment repair and maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition limits the government's ability to explore alternative solutions or negotiate more favorable terms based on multiple offers. It suggests that Motorola Solutions, Inc. is the only entity capable of providing the necessary sustainment for the CNIC ELMR system.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall spending.

Public Impact

The Department of Defense benefits from the continued operational readiness of the CNIC ELMR system. This contract ensures the sustainment and maintenance of critical electronic and precision equipment. The services delivered are essential for maintaining secure and reliable communication networks for defense operations. The primary beneficiaries are military personnel and defense agencies relying on the ELMR system for their mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may indicate a reliance on a single vendor, creating potential lock-in.
No small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Fixed-price contract type helps to control costs and provides budget predictability.
Sustainment support ensures the continued functionality of a critical defense system.
Award to an established contractor may indicate a known quantity for reliable service delivery.

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector (NAICS 811210) is vital for supporting complex technological systems across various industries, including defense. This contract falls within a niche requiring specialized knowledge of the CNIC ELMR system. The market for such specialized sustainment can be limited, often favoring original equipment manufacturers or highly specialized service providers. The award value of $64.3 million for this specific sustainment contract is substantial, reflecting the complexity and criticality of the equipment being maintained.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have any specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in this significant defense contract are limited. The absence of a small business set-aside could mean that the contracting agency did not identify opportunities suitable for small business participation or that the nature of the specialized sustainment required was beyond the typical capabilities of small businesses in this domain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA), which awarded the contract. Accountability measures will be embedded within the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though the specifics of performance monitoring and any Inspector General involvement would depend on the contract's detailed clauses and any identified issues.

Related Government Programs

CNIC ELMR System
Defense Communications Infrastructure
Electronic Equipment Maintenance Contracts
Motorola Solutions Government Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.3 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 $64.3 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-09-27.

What is the historical spending pattern for the CNIC ELMR sustainment support?

Detailed historical spending data for the CNIC ELMR sustainment support prior to this award is not readily available in the provided data. However, the current award of $64.3 million over approximately two years suggests a significant and ongoing investment in maintaining this critical system. To fully understand the historical spending pattern, one would need to access contract databases for previous awards related to ELMR sustainment, maintenance, or upgrades. Analyzing these past expenditures would reveal trends in cost, contract duration, and contractor performance, providing a baseline against which the current award's value and necessity can be more accurately assessed.

What specific services are included under 'ELMR SUSTAINMENT SUPPORT'?

The term 'ELMR SUSTAINMENT SUPPORT' generally encompasses a range of activities necessary to ensure the continued operational readiness and effectiveness of the ELMR (Enhanced Location, Measurement, and Reporting) system. This typically includes preventative maintenance, corrective maintenance (repairs), software updates and patches, system diagnostics, technical support, and potentially the provision of spare parts. Given the sole-source nature of this award to Motorola Solutions, Inc., it is highly probable that these services are highly specialized and tailored to the proprietary aspects of the ELMR system, which Motorola Solutions likely developed or has exclusive rights to service.

What are the risks associated with a sole-source award for critical defense systems?

Sole-source awards for critical defense systems carry several inherent risks. Foremost is the risk of inflated pricing, as the absence of competition removes the incentive for the contractor to offer the most competitive rate. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, making future transitions or negotiations difficult and potentially costly. Furthermore, a sole-source award might limit access to innovative solutions or alternative technologies that could be offered by other vendors if the contract were competed. Finally, it can raise concerns about the justification for sole-sourcing and whether all avenues for competition were adequately explored.

How does this contract compare to other similar sustainment contracts within the DoD?

Direct comparison of this $64.3 million sole-source contract for ELMR sustainment to other similar DoD sustainment contracts is difficult without knowing the specific technical scope and criticality of the systems involved. However, sustainment contracts for complex electronic and communication systems within the DoD can range from tens to hundreds of millions of dollars over their lifecycle. The fact that this is a sole-source award to Motorola Solutions, Inc. suggests a high degree of specialization. To benchmark effectively, one would need to identify contracts for sustainment of comparable communication or electronic warfare systems, analyze their pricing structures (fixed-price vs. cost-plus), contract durations, and competition levels.

What is Motorola Solutions, Inc.'s track record with the DoD for similar services?

Motorola Solutions, Inc. has a significant and long-standing track record of providing communication systems and services to the U.S. Department of Defense and other government agencies. They are known for their work in public safety and defense communications, including radio systems, command and control solutions, and related support services. Their history with the DoD likely includes numerous contracts for the development, deployment, and sustainment of various communication platforms. This extensive experience suggests a deep understanding of military requirements and operational environments, which is often a key factor in sole-source awards for specialized systems like ELMR.

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: HC102824R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 809 PINNACLE DR STE G, LINTHICUM HEIGHTS, MD, 21090

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: $190,985,021

Exercised Options: $71,849,686

Current Obligation: $64,291,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline