DoD's $48.9M Motorola Solutions ELMR Sustainment Contract Awarded Sole Source

Contract Overview

Contract Amount: $48,922,952 ($48.9M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-12-28

End Date: 2015-12-28

Contract Duration: 1,095 days

Daily Burn Rate: $44.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AT/FP ASHORE GLOBAL ELMR SUSTAINMENT

Place of Performance

Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to MOTOROLA SOLUTIONS, INC. for work described as: AT/FP ASHORE GLOBAL ELMR SUSTAINMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Limited competition may have impacted price discovery and potentially led to higher costs. 3. The contract duration of 1095 days suggests a long-term commitment to sustainment services. 4. Performance context is limited due to the sole-source nature and lack of comparative data. 5. Sector positioning within Engineering Services (NAICS 541330) indicates a focus on technical support. 6. The contract value of $48.9M warrants scrutiny for value-for-money compared to similar sustainment efforts.

Value Assessment

Rating: questionable

Benchmarking the value of this $48.9M contract is challenging due to its sole-source nature and the specific 'ELMR Sustainment' service. Without comparable sole-source contracts or open competition data for similar sustainment services, it's difficult to definitively assess if the pricing is competitive. The absence of a clear benchmark makes it hard to determine if the government received optimal value for its investment. Further analysis would require understanding the specific technical requirements and the unique capabilities of Motorola Solutions in this domain.

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 indicates that the Department of the Navy identified Motorola Solutions as the only responsible source capable of providing the required ELMR sustainment services. The lack of competition means there were no other bidders, and therefore, no direct price comparison or negotiation leverage that typically arises from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates a thorough review of the justification for the sole-source award to ensure it was indeed the most appropriate and cost-effective approach.

Public Impact

The primary beneficiaries are likely Department of Defense (DoD) personnel and operations that rely on the ELMR system for communication and command and control. The services delivered are critical for the sustainment and operational readiness of the ELMR system. The geographic impact is likely focused on areas where the ELMR system is deployed by the Navy, potentially worldwide. Workforce implications may involve specialized technical personnel required for system sustainment, potentially including both government personnel and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for vendor lock-in if ELMR system is proprietary and requires specialized support.

Positive Signals

Contract addresses critical sustainment needs for a key DoD system.
Motorola Solutions is a known provider of communication and electronic systems.
Firm Fixed Price contract type can provide cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The market for defense-related sustainment and communication systems is highly specialized, often dominated by a few key players with established relationships and proprietary technologies. The total federal spending in Engineering Services is substantial, with a significant portion allocated to defense-related procurements. This contract represents a specific instance of sustainment spending within that broader sector.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) is also false. This suggests that small businesses are unlikely to be directly involved as prime contractors or through mandatory subcontracting opportunities on this specific award. The focus is on a large, sole-source provider, potentially limiting opportunities for the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined by the contract terms and conditions, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Defense Communication Systems
Electronic Warfare Systems
Command and Control Systems
Federal IT Sustainment Contracts
Department of the Navy Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to MOTOROLA SOLUTIONS, INC.. AT/FP ASHORE GLOBAL ELMR SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $48.9 million.

What is the period of performance?

Start: 2012-12-28. End: 2015-12-28.

What is the specific nature of the 'ELMR Sustainment' services provided by Motorola Solutions?

The 'ELMR Sustainment' likely refers to the ongoing support, maintenance, repair, and potentially upgrades for the Enhanced Low-Band Mobile Radio (ELMR) system. This system is crucial for secure, mobile voice and data communications within the Department of Defense, particularly for tactical operations. Sustainment services would encompass ensuring the system's operational readiness, addressing technical issues, providing spare parts, and potentially managing software updates. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify the technical requirements, service levels, and performance metrics expected from Motorola Solutions.

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

The justification for a sole-source award typically stems from a determination that only one responsible source can provide the required supplies or services. For Motorola Solutions and the ELMR system, this could be due to proprietary technology, unique system integration expertise, existing infrastructure, or specific security clearances held by the contractor. The Department of the Navy would have conducted a market research effort and concluded that no other vendor could meet the requirements. Common justifications include that the item is available only from the original source or that substantial duplication of cost would be incurred if awarded to another source. The specific justification document (e.g., a Justification and Approval - J&A) would provide the detailed rationale.

How does the $48.9M contract value compare to similar sustainment contracts for communication systems?

Direct comparison of this $48.9M contract value is difficult without knowing the specific scope, duration, and system complexity. However, sustainment contracts for complex communication and electronic systems for the DoD can range from tens of millions to hundreds of millions of dollars over their lifecycle. Given this contract's duration of 1095 days (3 years), the annual value is approximately $16.3M. This figure needs to be benchmarked against similar sustainment contracts for tactical radio systems or command and control infrastructure. Factors like the number of users supported, geographic coverage, and the criticality of the system influence pricing. A sole-source award may also mean the price is not as optimized as it could be in a competitive environment.

What are the potential risks associated with a sole-source sustainment contract of this magnitude?

The primary risk with a sole-source contract is the potential for inflated costs due to a lack of competition. Taxpayers may not be receiving the best possible value. Another risk is vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future. Performance risk also exists; while Motorola Solutions is a reputable company, without competitive pressure, there might be less incentive to exceed performance expectations. Finally, the lack of transparency in the procurement process can raise concerns about fairness and efficiency.

What is Motorola Solutions' track record with the Department of Defense for similar systems?

Motorola Solutions has a long-standing history of providing communication solutions to government agencies, including the Department of Defense. They are known for their public safety and defense communication systems, including radio networks and command and control technologies. Their track record with the DoD likely includes numerous contracts for various communication platforms, tactical radios, and related sustainment services. Specific details on their performance for ELMR sustainment would be found in past performance evaluations within DoD procurement databases, but their general presence in the defense communication market suggests a level of established capability and experience.

How has federal spending on Engineering Services (NAICS 541330) evolved, and where does this contract fit?

Federal spending on Engineering Services (NAICS 541330) has historically been substantial, driven significantly by defense, infrastructure, and research and development needs. Spending in this category often fluctuates based on national priorities, budget allocations, and major project cycles. The Department of Defense is consistently one of the largest federal spenders in this sector. This $48.9M contract for ELMR sustainment fits within the defense sub-category of engineering services, specifically focusing on the ongoing support and maintenance of critical communication infrastructure. It represents a portion of the broader DoD investment in maintaining its technological readiness and operational capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6258312R0754

Offers Received: 1

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: $48,922,952

Exercised Options: $48,922,952

Current Obligation: $48,922,952

Contract Characteristics

Cost or Pricing Data: NO

Timeline