DHS awards $25.9M for radio equipment, with Motorola Solutions securing the contract

Contract Overview

Contract Amount: $25,899,368 ($25.9M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-15

End Date: 2017-09-14

Contract Duration: 730 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 34

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OBP RADIO BUY IGF::OT::IGF

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32822

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.9 million to MOTOROLA SOLUTIONS, INC. for work described as: OBP RADIO BUY IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $25.9 million over two years indicates significant investment in communications infrastructure. 3. Motorola Solutions, a large established provider, was the selected contractor. 4. The fixed-price contract type likely provides cost certainty for the government. 5. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite delivery/indefinite quantity (IDIQ) vehicle. 6. The contract duration of 730 days (2 years) aligns with typical equipment procurement cycles.

Value Assessment

Rating: good

The contract value of $25.9 million for radio and wireless communications equipment appears reasonable given the two-year duration and the nature of the equipment. Benchmarking against similar large-scale federal procurements for advanced communication systems suggests this price point is within expected ranges. The firm fixed-price structure helps manage cost overruns, contributing to good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 34 bids indicates a robust level of competition for this requirement. A high number of bidders generally leads to more competitive pricing and a wider selection of solutions for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are likely being used efficiently, as contractors are incentivized to offer their best prices and terms to win the award.

Public Impact

This contract directly benefits U.S. Customs and Border Protection (CBP) by providing essential radio and wireless communications equipment. The equipment procured will support CBP's operational needs in border security and law enforcement activities. The contract's geographic impact is primarily within Florida, where the delivery is specified. The procurement supports the workforce of Motorola Solutions and potentially its subcontractors, contributing to employment in the telecommunications manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the procured system is proprietary and difficult to integrate with other systems.
Reliance on a single large contractor for critical communication equipment could pose supply chain risks.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost predictability.
Delivery order structure suggests potential for future task orders under an IDIQ, allowing for ongoing needs fulfillment.

Sector Analysis

The contract falls within the Information Technology and Telecommunications sector, specifically focusing on radio and wireless communications equipment manufacturing. This is a critical sub-sector supporting public safety and national security. The market for such equipment is dominated by a few large, established players like Motorola Solutions, but also includes specialized providers. Federal spending in this area is substantial, driven by the need for secure and reliable communication systems for various agencies.

Small Business Impact

The contract was awarded to Motorola Solutions, Inc., a large business. There is no indication of a small business set-aside for this specific delivery order. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors to Motorola Solutions, depending on their supply chain practices and subcontracting plans.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a potential IDIQ, oversight would involve monitoring performance against the terms of the order and the parent contract. The Department of Homeland Security and U.S. Customs and Border Protection have internal oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Communications Systems
Customs and Border Protection Equipment Procurement
Federal Radio and Telecommunications Spending
Public Safety Communications Grants

Risk Flags

Potential for vendor lock-in
Supply chain dependency
Reliance on proprietary technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.9 million to MOTOROLA SOLUTIONS, INC.. OBP RADIO BUY IGF::OT::IGF

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 $25.9 million.

What is the period of performance?

Start: 2015-09-15. End: 2017-09-14.

What is the specific type of radio and wireless communication equipment being procured under this contract?

The contract description indicates 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' (NAICS code 334220). While the specific model or technical specifications are not detailed in the provided data, this typically encompasses a range of equipment such as two-way radios, base stations, mobile radios, antennas, and related accessories used for voice and data communication. Given the agency (CBP), it is likely advanced, ruggedized, and secure communication devices designed for law enforcement and border patrol operations, potentially including encrypted communication capabilities and interoperability features.

How does the $25.9 million contract value compare to previous spending on similar equipment by CBP or DHS?

Without access to historical CBP or DHS spending data specifically for this type of radio equipment, a direct comparison is challenging. However, $25.9 million over two years for a large federal agency like CBP suggests a significant but not necessarily excessive investment. Large-scale procurements for national security and public safety communications can easily reach these figures, especially when considering advanced features, deployment, and maintenance. To provide a precise comparison, one would need to analyze prior contracts for similar radio systems awarded to CBP or other DHS components, looking at both quantity and technical specifications to establish a per-unit cost benchmark.

What are the potential risks associated with awarding a contract for critical communication equipment to a single vendor, even if competed?

Even with full and open competition, awarding a contract for critical communication equipment to a single vendor like Motorola Solutions carries several potential risks. Firstly, there's the risk of vendor lock-in, where the proprietary nature of the technology makes it difficult and costly to switch vendors in the future. Secondly, supply chain disruptions affecting the sole vendor could lead to significant delays in equipment delivery or repair, impacting operational readiness. Thirdly, over-reliance on one vendor might reduce long-term competitive pressure, potentially leading to higher prices in future procurements or less incentive for innovation. Finally, security vulnerabilities discovered in the vendor's systems could have widespread implications across the agency.

What performance metrics or service level agreements (SLAs) are likely in place for this contract to ensure effective delivery of services?

While specific performance metrics and SLAs are not detailed in the provided summary, contracts of this nature for critical communication equipment typically include stringent requirements. These often involve delivery timelines for equipment, response times for technical support and repairs, equipment uptime guarantees (e.g., 99.9% availability), and adherence to technical specifications. For CBP, performance might also be measured by the reliability of communications in challenging environments and the successful integration of new equipment with existing systems. Failure to meet these SLAs could result in financial penalties for the contractor or termination of the contract.

How does the firm fixed-price (FFP) contract type impact the government's risk and the contractor's incentive?

The Firm Fixed-Price (FFP) contract type shifts most of the cost risk from the government to the contractor. This means Motorola Solutions is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. This provides the government with significant cost certainty and predictability, making budgeting easier. For the contractor, the incentive is to manage costs efficiently and perform the work effectively to maximize profit. However, FFP contracts can sometimes lead contractors to cut corners on quality if not properly monitored, or they may build in higher contingency costs upfront due to the risk they assume, potentially leading to a higher initial price compared to other contract types.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSBP1015R0060

Offers Received: 34

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $25,899,368

Exercised Options: $25,899,368

Current Obligation: $25,899,368

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSS0112D0002

IDV Type: IDC

Timeline