Motorola Solutions awarded $95.8M for Navy ELMR sustainment, a sole-source contract

Contract Overview

Contract Amount: $95,819,794 ($95.8M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-12-16

End Date: 2023-06-27

Contract Duration: 1,289 days

Daily Burn Rate: $74.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BASE YEAR- AT/FP ASHORE ELMR SUSTAINMENT

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60661

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $95.8 million to MOTOROLA SOLUTIONS, INC. for work described as: BASE YEAR- AT/FP ASHORE ELMR SUSTAINMENT Key points: 1. The contract's value of $95.8 million over its duration raises questions about cost-effectiveness given the lack of competition. 2. Sole-source procurement limits price discovery and potentially inflates costs for essential communication equipment sustainment. 3. The absence of a competitive bidding process is a significant risk indicator for value for money. 4. Performance context is limited due to the sole-source nature, making direct comparisons difficult. 5. This contract positions Motorola Solutions as a key provider for a critical Navy communication system. 6. The firm-fixed-price structure aims to control costs, but the lack of competition undermines this benefit.

Value Assessment

Rating: questionable

Benchmarking the value of this $95.8 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. While firm-fixed-price contracts are intended to provide cost certainty, the lack of competition means the government may not be achieving the best possible price. Comparisons to similar sustainment contracts for communication equipment are hindered by the unique nature of the ELMR system and the procurement method.

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. The lack of competition means there were no other bidders to compare against, and no opportunity for price negotiation that typically arises from multiple offers. This limits the government's ability to leverage market forces to secure the most advantageous terms.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods or services, as the benefits of competition in driving down prices are absent.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who rely on the ELMR (Enterprise Land Mobile Radio) system for critical communications. The services delivered include sustainment, ensuring the continued operational readiness of vital communication equipment. The geographic impact is primarily within Illinois, where the contract is managed, but the system's use is likely nationwide for Navy operations. Workforce implications include the continued employment of personnel at Motorola Solutions dedicated to maintaining and supporting this specific communication system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to no open competition.
Potential for vendor lock-in with specialized sustainment services.
Dependence on a single supplier for critical communication infrastructure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base year.
Sustainment contract ensures continued operational capability of essential Navy communication systems.
Motorola Solutions is an established provider with expertise in communication technology.

Sector Analysis

The market for communication equipment repair and maintenance is substantial, with significant government spending allocated to ensuring the operational readiness of critical systems. This contract falls within the broader telecommunications and defense electronics sector. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of the ELMR system and the sole-source award. However, sustainment contracts for complex communication networks often represent a significant portion of the total lifecycle cost of such systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The sole-source nature of the award further limits opportunities for small business participation. This means the primary economic benefit flows directly to the large prime contractor, Motorola Solutions, Inc., with limited direct impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Navy Enterprise Land Mobile Radio (ELMR) System
Department of Defense Communication Systems
Radios and Communication Equipment Maintenance

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.8 million to MOTOROLA SOLUTIONS, INC.. BASE YEAR- AT/FP ASHORE 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 $95.8 million.

What is the period of performance?

Start: 2019-12-16. End: 2023-06-27.

What is the historical spending pattern for the ELMR sustainment program with Motorola Solutions?

The provided data reflects a single definitive contract awarded on December 16, 2019, with an end date of June 27, 2023, totaling $95,819,794.28 for the base year. Without access to historical contract databases or previous awards for ELMR sustainment, it is difficult to establish a long-term spending pattern. This specific contract appears to be a significant, sole-source award for a defined period. Further analysis would require examining prior contracts for this system, potentially including different vendors or procurement methods, to understand trends in cost, duration, and competition over time.

How does the per-unit cost of this contract compare to industry benchmarks for similar communication equipment sustainment?

Determining a precise per-unit cost for comparison is challenging because the contract data does not specify the number of units or the exact nature of the sustainment services provided on a per-unit basis. The contract is for 'ELMR SUSTAINMENT' and is a definitive contract with a total value of $95.8 million. Without a breakdown of costs per radio, per site, or per service type, and lacking specific details on the scope of work (e.g., preventative maintenance, repairs, software updates), direct benchmarking against industry standards for similar communication equipment sustainment is not feasible. The sole-source nature also prevents direct comparison with competitively bid contracts.

What are the specific risks associated with relying on a sole-source provider for critical communication infrastructure like the ELMR system?

Relying on a sole-source provider like Motorola Solutions for the ELMR system introduces several risks. Firstly, there's a significant risk of inflated costs due to the absence of competitive pressure, potentially leading to taxpayers paying more than necessary. Secondly, vendor lock-in is a concern, as the government may become dependent on Motorola's proprietary technology and pricing, making future transitions to different systems or vendors difficult and costly. Thirdly, there's a risk of reduced innovation, as the sole provider may have less incentive to invest in improving services or technology without competitive threats. Finally, supply chain disruptions or the provider's business decisions could directly impact the Navy's operational capabilities without readily available alternatives.

What is Motorola Solutions' track record with the Department of Defense, particularly regarding communication systems?

Motorola Solutions, Inc. has a long-standing relationship with the Department of Defense (DoD) and other government agencies, providing a wide range of communication solutions, including land mobile radio systems, command and control technologies, and public safety software. They are a well-established player in the defense and public safety communications market. Their track record includes numerous contracts for various branches of the military and federal agencies. While this specific contract for ELMR sustainment was sole-source, the company has likely been involved in both competitive and non-competitive procurements over its history. Assessing their overall track record would involve reviewing performance metrics across multiple contracts, including on-time delivery, quality of service, and adherence to budget, which are not detailed in the provided data.

How does the $95.8 million award compare to overall Navy spending on communication equipment and sustainment?

The $95.8 million award for ELMR sustainment represents a notable investment in a specific communication system. To contextualize this within the broader Navy spending, one would need to compare it against the total annual budget allocated by the Department of the Navy for information technology, communications, and related sustainment services. The Navy's overall budget is in the tens of billions of dollars annually. While $95.8 million is a substantial sum for a single contract, it may represent a relatively small percentage of the total defense communications budget. Understanding the proportion requires access to aggregated spending data for comparable categories across the Navy's fiscal years.

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: N3943019R2128

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 W MONROE ST STE 4400, CHICAGO, IL, 60661

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: $95,819,794

Exercised Options: $95,819,794

Current Obligation: $95,819,794

Actual Outlays: $33,913,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline