DHS awards $38.6M Motorola contract for Land Mobile Radio Equipment and Services, facing no competition

Contract Overview

Contract Amount: $38,658,953 ($38.7M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-05-28

End Date: 2014-09-29

Contract Duration: 1,585 days

Daily Burn Rate: $24.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LAND MOBILE RADIO EQUIPMENT AND SERVICES

Place of Performance

Location: HOULTON, AROOSTOOK County, MAINE, 04730

State: Maine Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.7 million to MOTOROLA SOLUTIONS, INC. for work described as: LAND MOBILE RADIO EQUIPMENT AND SERVICES Key points: 1. Significant contract value of $38.6 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. Contract duration of over 4 years suggests a long-term reliance on this vendor. 4. The 'All Other Telecommunications' NAICS code indicates a specialized but potentially broad service area.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $38.6 million price represents fair market value. Benchmarking against similar, competitively procured contracts for Land Mobile Radio systems is crucial for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the price discovery benefits of a competitive process, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in higher costs than a fully competed contract, impacting taxpayer value.

Public Impact

Essential communication systems for border security may be procured at inflated prices. Taxpayers may be subsidizing a lack of competitive market dynamics in telecommunications. Future procurements in this area could be influenced by this non-competitive precedent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Vendor Options

Positive Signals

Essential Service Provision
Established Vendor Relationship

Sector Analysis

The Department of Homeland Security's reliance on Land Mobile Radio systems highlights the critical role of telecommunications infrastructure in national security. Spending benchmarks for similar systems vary widely based on scope and technology, but non-competitive awards often exceed market rates.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract. Future opportunities should explore avenues for small business participation in telecommunications procurements.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value. A review of the justification for the sole-source award is recommended.

Related Government Programs

All Other Telecommunications
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for inflated costs due to lack of competition.
Limited transparency in pricing justification.
Missed opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.7 million to MOTOROLA SOLUTIONS, INC.. LAND MOBILE RADIO EQUIPMENT AND SERVICES

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 $38.7 million.

What is the period of performance?

Start: 2010-05-28. End: 2014-09-29.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts require a documented justification, such as the unavailability of other sources or urgent and compelling needs. A thorough review of the contract file would be necessary to ascertain the validity and adequacy of this justification and ensure it aligns with federal procurement regulations.

How does the unit cost of this Land Mobile Radio equipment and services compare to industry benchmarks for similar, competitively procured systems?

Without access to specific line-item details and competitive benchmark data, a precise comparison is not possible. However, given the sole-source nature of this award, it is probable that the unit costs are higher than what might be achieved through a competitive bidding process. Further analysis would require detailed pricing information and access to market research on comparable systems.

What is the long-term strategy for ensuring competitive sourcing for future Land Mobile Radio needs, given this sole-source award?

The agency should develop a strategy to foster competition for future Land Mobile Radio requirements. This could involve market research to identify potential vendors, breaking down large requirements into smaller, more accessible contracts, and exploring innovative procurement methods. Proactive planning is essential to avoid recurring sole-source awards and ensure cost-effectiveness.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

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, 21046

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

Financial Breakdown

Contract Ceiling: $47,359,905

Exercised Options: $38,658,953

Current Obligation: $38,658,953

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline