DHS Spends $9.8M on Radio Equipment Repair, Sole-Sourced from Motorola Solutions

Contract Overview

Contract Amount: $9,832,614 ($9.8M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-03-13

End Date: 2006-09-30

Contract Duration: 201 days

Daily Burn Rate: $48.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RADIO EQUIPMENT

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.8 million to MOTOROLA SOLUTIONS, INC. for work described as: RADIO EQUIPMENT Key points: 1. High spending on a single contract for repair and maintenance. 2. Sole-source award to Motorola Solutions raises competition concerns. 3. Potential for inflated costs due to lack of competitive bidding. 4. Focus on communication equipment highlights critical infrastructure needs.

Value Assessment

Rating: questionable

The contract value of $9.8M for repair and maintenance is significant. Without competitive pricing data, it's difficult to assess if this represents fair value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in higher prices than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Citizens rely on Customs and Border Protection for secure communication, making this equipment vital. The sole-source nature of the contract may limit innovation and service improvements. Taxpayers may be overpaying for essential communication equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Essential service for national security
Established vendor relationship

Sector Analysis

Spending on communication equipment repair and maintenance is crucial for government operations, particularly for agencies like Customs and Border Protection. Benchmarks for this specific service are hard to establish without competitive data, but large sole-source contracts warrant scrutiny.

Small Business Impact

This contract does not appear to have involved small businesses, as it was a sole-source award to a large corporation. Opportunities for small business participation were likely missed.

Oversight & Accountability

The sole-source nature of this contract suggests a potential lack of robust oversight in the procurement process. Further review is needed to ensure accountability and fair pricing.

Related Government Programs

Communication Equipment Repair and Maintenance
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in procurement.
Risk of vendor lock-in.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.8 million to MOTOROLA SOLUTIONS, INC.. RADIO EQUIPMENT

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2006-03-13. End: 2006-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's impossible to determine the exact reason. However, such awards require strong justification to ensure taxpayer funds are used efficiently and competitively.

What is the risk of vendor lock-in and escalating costs with this sole-source contract?

Sole-source contracts inherently carry a high risk of vendor lock-in, as the agency becomes dependent on a single provider. This dependence can lead to escalating costs over time, as the vendor faces little pressure to offer competitive pricing or innovate. Regular re-evaluation and market research are crucial to mitigate this risk.

How does the lack of competition impact the overall effectiveness and value for money?

The absence of competition significantly hinders the government's ability to secure the best value for money. Without competing bids, there's no market pressure to drive down prices or encourage service improvements. This can lead to suboptimal outcomes, where taxpayers pay more for potentially less effective or outdated services.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7031 COLUMBIA GATEWAY DR 3RD FL, COLUMBIA, MD, 03

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,832,614

Exercised Options: $9,832,614

Current Obligation: $9,832,614

Timeline