DHS awarded $28.5M to Motorola for radio equipment, a sole-source contract with limited competition

Contract Overview

Contract Amount: $28,574,806 ($28.6M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-05

End Date: 2008-09-30

Contract Duration: 117 days

Daily Burn Rate: $244.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RADIOS

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.6 million to MOTOROLA SOLUTIONS, INC. for work described as: RADIOS Key points: 1. The contract's value of $28.5 million represents a significant investment in critical communications infrastructure. 2. Sole-source procurement limits competitive pressure, potentially impacting price efficiency. 3. The contract duration of 117 days suggests a focused, short-term need for the equipment. 4. The use of a firm-fixed-price contract shifts cost risk to the contractor. 5. The award to a single vendor raises questions about market alternatives and long-term strategic sourcing. 6. The specific product code is missing, hindering detailed analysis of the equipment procured.

Value Assessment

Rating: questionable

Benchmarking the value of this $28.5 million contract is challenging without specific product details or comparable contract data. However, sole-source awards often carry a premium due to the absence of competitive bidding. The firm-fixed-price structure is standard for equipment purchases, but the overall value proposition is difficult to assess without knowing if the price reflects market rates for similar radio and wireless communications equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Motorola Solutions, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and may not yield the best value for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. This can lead to higher overall spending for the same goods or services.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel who will receive enhanced or new radio communication capabilities. The contract delivers essential wireless communications equipment, crucial for border security and law enforcement operations. The geographic impact is likely focused on areas where CBP operates, potentially nationwide, depending on the deployment of the radio systems. The contract supports the manufacturing and supply chain for specialized communications equipment, indirectly impacting the technology sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
Absence of detailed product specifications makes it difficult to verify the necessity and appropriateness of the procured equipment.
The short contract duration (117 days) might indicate an urgent need, but also raises questions about long-term sustainment and integration planning.

Positive Signals

The use of a firm-fixed-price contract effectively transfers cost overrun risk to the contractor.
Awarding to a known entity like Motorola Solutions, Inc. may leverage existing relationships and technical expertise, potentially speeding up delivery.

Sector Analysis

This contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. This industry is characterized by rapid technological advancements and significant R&D investment. The market includes a few dominant players like Motorola Solutions, Inc. Government spending in this sector is crucial for national security, public safety, and critical infrastructure, often involving specialized and high-cost equipment. Benchmarks for similar government contracts in this niche are difficult to ascertain without specific product details, but large sole-source awards are not uncommon for specialized communication systems.

Small Business Impact

As this was a sole-source award to a large corporation, there is no indication of small business set-asides or subcontracting opportunities directly tied to this specific award. The absence of competition limits the potential for small businesses to participate in this particular contract. Further analysis would be needed to determine if Motorola Solutions, Inc. has broader subcontracting goals with small businesses across its portfolio.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Homeland Security and U.S. Customs and Border Protection. As a sole-source award, the justification for bypassing competition would be subject to internal review and potentially oversight from agencies like the Government Accountability Office (GAO) if challenged. Transparency is limited due to the non-competitive nature, and specific accountability measures would depend on the contract's performance clauses and reporting requirements.

Related Government Programs

DHS Radio Communications Modernization Programs
CBP Command and Control Systems
First Responder Network Authority (FirstNet) related procurements
Department of Defense Tactical Communications Equipment

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific equipment procured.
Potential for non-optimal pricing due to lack of competition.
Short contract duration may indicate urgent need or limited scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.6 million to MOTOROLA SOLUTIONS, INC.. RADIOS

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 $28.6 million.

What is the period of performance?

Start: 2008-06-05. End: 2008-09-30.

What specific type of radio and wireless communications equipment was procured under this contract?

The provided data indicates the contract falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' (NAICS 334220) sector, and the awardee is Motorola Solutions, Inc. However, the specific product or system procured is not detailed in the provided data. This lack of specificity makes it impossible to determine if the equipment is for tactical use, public safety networks, or other specialized communication needs. Without this information, a precise assessment of the equipment's function, necessity, and technological relevance cannot be made.

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

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. Typical justifications for sole-source procurements include unique capabilities, urgent and compelling needs where only one source can fulfill the requirement, or when market research reveals only one responsible source exists. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reason for bypassing full and open competition remains unknown. This lack of transparency is a common concern with sole-source awards.

How does the $28.5 million contract value compare to similar procurements for radio equipment by DHS or other agencies?

Direct comparison of the $28.5 million value is difficult without knowing the exact specifications and quantity of radio equipment purchased. However, Motorola Solutions, Inc. is a major provider of public safety and defense communication systems, and contracts of this magnitude are not unusual for comprehensive system deployments or upgrades. To benchmark effectively, one would need to identify contracts for similar radio systems (e.g., P25 compliant radios, encrypted communication systems) awarded around the same period, considering factors like system scope, user base, and included services. The sole-source nature of this award also complicates direct value-for-money comparisons.

What is Motorola Solutions, Inc.'s track record with the Department of Homeland Security and specifically U.S. Customs and Border Protection?

Motorola Solutions, Inc. has a long-standing relationship with various government agencies, including DHS and its components like CBP, as a primary provider of public safety communication systems. They are known for their land mobile radio systems, including Project 25 (P25) compliant radios, which are widely used by law enforcement and first responders. CBP, in particular, relies heavily on robust communication networks for border security operations. While this specific $28.5 million contract is a single data point, Motorola's extensive presence in this market suggests a history of numerous awards and ongoing engagements with DHS and CBP for communication equipment and services.

What are the potential risks associated with a sole-source award of this magnitude for critical communication equipment?

The primary risk of a sole-source award is the potential lack of competitive pressure, which can lead to inflated prices and suboptimal value for taxpayer money. There's also a risk that the chosen vendor's technology might not be the most innovative or cost-effective available on the market. Furthermore, reliance on a single vendor can create long-term dependency, potentially limiting future flexibility and increasing switching costs if the vendor's offerings become outdated or their pricing becomes uncompetitive. Ensuring adequate technical oversight and performance management is crucial to mitigate these risks.

What is the expected performance period and delivery timeline for this contract?

The contract's start date was June 5, 2008, and the end date was September 30, 2008. This indicates a contract duration of approximately 117 days (roughly four months). This relatively short timeframe suggests that the contract was likely for the procurement and delivery of specific radio equipment rather than a long-term service agreement or a complex system integration project requiring extensive development or deployment over multiple years. The urgency implied by such a short window could be a factor in the sole-source justification.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7031 COLUMBIA GATEWAY DR 3RD FL, COLUMBIA, MD, 21046

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,574,806

Exercised Options: $28,574,806

Current Obligation: $28,574,806

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSSS0106D0005

IDV Type: IDC

Timeline