DoD's $78.5M Motorola LMR Contract for Anti-Terrorism/Force Protection Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $78,537,540 ($78.5M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-12-23

End Date: 2019-12-27

Contract Duration: 1,465 days

Daily Burn Rate: $53.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE ENTERPRISE LAND MOBILE RADIO SUSTAINMENT SERVICES AT VARIOUS NAVY INSTALLATIONS WORLDWIDE.

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $78.5 million to MOTOROLA SOLUTIONS, INC. for work described as: IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE ENTERPRISE LAND MOBILE RADIO SUSTAINMENT SERVICES AT VARIOUS NAVY INSTALLATIONS WORLDWIDE. Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm-fixed-price structure shifts performance risk to the contractor, but the lack of competition hinders benchmarking. 3. Long contract duration (1465 days) suggests a need for sustained services, but competition could have driven innovation. 4. Focus on sustainment for Land Mobile Radio systems indicates critical infrastructure support. 5. The contract's value, while substantial, needs careful comparison to similar sole-source procurements to assess value for money. 6. No small business set-aside was applied, potentially limiting opportunities for smaller vendors in this specialized market.

Value Assessment

Rating: questionable

The contract's value of $78.5 million over approximately four years for sustainment services is significant. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The sole-source nature raises concerns about whether the government achieved the best possible price. While firm-fixed-price contracts can offer cost certainty, the absence of competition means there's no direct market validation of the pricing's reasonableness. Further analysis would require access to internal cost estimates or comparisons with other sole-source sustainment contracts for similar communication 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. The justification for this approach is not provided in the data, but typically sole-source awards occur when only one responsible source can provide the required supplies or services. This lack of competition means that the Navy did not benefit from multiple bids, which could have driven down prices and spurred innovation. The absence of a competitive process limits the government's ability to ensure it received the most advantageous terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing bids, there is less assurance that the price reflects fair market value, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who rely on secure and reliable communication systems for anti-terrorism and force protection. Services delivered include sustainment for enterprise land mobile radio systems, ensuring operational readiness. The contract supports various Navy installations worldwide, indicating a broad geographic impact. The contract likely supports a specialized workforce within Motorola Solutions, Inc., focused on maintaining and supporting LMR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may hinder innovation and the adoption of newer technologies.
Long-term sustainment contract without competition raises questions about long-term value for money.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Sustainment services ensure critical communication infrastructure remains operational.
Contract supports essential anti-terrorism and force protection missions.

Sector Analysis

The Land Mobile Radio (LMR) market is a mature sector within the broader communications industry, crucial for public safety and defense operations. This contract falls under communication equipment repair and maintenance. While specific market size data for LMR sustainment is not readily available, the overall defense communication systems market is substantial, with significant government spending. This contract represents a portion of that spending, focused on maintaining legacy and current LMR infrastructure for a major military branch. Comparable spending benchmarks would typically involve analyzing other sole-source sustainment contracts for similar critical communication systems within the DoD.

Small Business Impact

This contract was not competed with a small business set-aside, nor does it appear to have been awarded to a small business. The data indicates the prime contractor is Motorola Solutions, Inc., a large corporation. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a set-aside means that opportunities for small businesses to compete for this particular sustainment work were not prioritized.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Inspector General for the Department of Defense may conduct audits or investigations into contract performance and pricing, particularly given the sole-source nature. Transparency is limited by the lack of public justification for the sole-source award and detailed performance metrics.

Related Government Programs

DoD Enterprise Land Mobile Radio (ELMR) Program
Navy Tactical Networks
Base Communications Infrastructure Support
Public Safety Radio Systems Maintenance
Defense Communications Equipment Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long-term dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.5 million to MOTOROLA SOLUTIONS, INC.. IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE ENTERPRISE LAND MOBILE RADIO SUSTAINMENT SERVICES AT VARIOUS NAVY INSTALLATIONS WORLDWIDE.

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 $78.5 million.

What is the period of performance?

Start: 2015-12-23. End: 2019-12-27.

What was the specific justification for awarding this contract on a sole-source basis to Motorola Solutions, Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as unique capabilities, urgent needs, or when only one responsible source can fulfill the requirement. For this contract, potential justifications could include proprietary technology, existing infrastructure integration, or a lack of viable alternative providers for sustainment of specific Motorola LMR systems. Without the official Justification and Approval (J&A) document, the precise reasoning remains speculative. Further investigation would be required to obtain and analyze the official documentation supporting the sole-source determination.

How does the per-unit cost of sustainment for these LMR systems compare to industry benchmarks or similar government contracts?

Benchmarking the per-unit cost for this contract is challenging due to the sole-source nature and the lack of detailed cost breakdowns in the provided data. 'Per-unit cost' could refer to various metrics, such as cost per radio supported, cost per site maintained, or cost per hour of service. Without knowing the specific services included in the sustainment package and the quantity of assets supported, a direct comparison is difficult. Industry benchmarks for LMR sustainment vary widely based on technology, service level agreements, and vendor. Given the lack of competition, it is plausible that the per-unit cost may be higher than if the contract had been competitively procured. A detailed analysis would require comparing the contract's specific line items and service levels against publicly available data for similar sustainment contracts or industry reports.

What is Motorola Solutions, Inc.'s track record with the Department of the Navy and similar sustainment contracts?

Motorola Solutions, Inc. is a major provider of communication solutions, including LMR systems, to government agencies, including the Department of Defense. They have a long history of supplying and supporting radio communication equipment. For the Department of the Navy specifically, Motorola Solutions has likely been involved in numerous contracts related to communication systems, potentially including sustainment services. Their track record would generally be considered extensive in this domain. However, the specific performance history on this particular contract, especially concerning its sole-source nature and the duration, would need to be assessed through contract performance reports (e.g., CPARS) and any available Inspector General reports related to their DoD contracts. A positive track record does not inherently negate concerns about value for money in a sole-source scenario.

What are the potential risks associated with relying on a single vendor for critical LMR sustainment over a four-year period?

Relying on a single vendor for critical LMR sustainment over four years presents several risks. Firstly, there's a risk of vendor lock-in, where the government becomes dependent on Motorola Solutions' proprietary systems and pricing, making it difficult and costly to switch providers. Secondly, without competition, the vendor may have less incentive to innovate or improve service quality, potentially leading to stagnation. Thirdly, if Motorola Solutions experiences financial difficulties, supply chain disruptions, or changes its business strategy, it could significantly impact the Navy's ability to maintain its communication systems. Finally, the lack of competitive pressure could result in higher costs than might be achieved through a competitive process, impacting the overall value for money.

How has spending on LMR sustainment services by the Department of the Navy evolved over time, and how does this contract fit into that trend?

Historical spending data on LMR sustainment services by the Department of the Navy is not provided in this dataset. However, it is generally understood that maintaining critical communication infrastructure like LMR systems requires consistent and significant investment. As technology evolves and systems age, sustainment costs can fluctuate. This $78.5 million contract represents a substantial, multi-year investment in ensuring the operational readiness of these systems. Without historical context, it's difficult to definitively state if this spending is higher or lower than previous periods. However, the trend in defense spending often involves balancing the need for modernization with the costs of maintaining existing capabilities. The sole-source nature of this award might suggest a continuation of an existing relationship or a specific need that wasn't met through broader competitions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N3943015R1655

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: $78,537,540

Exercised Options: $78,537,540

Current Obligation: $78,537,540

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline