DoD's $29.7M Communication Equipment Repair Contract Awarded to Motorola Solutions, Inc

Contract Overview

Contract Amount: $29,688,111 ($29.7M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-05-31

End Date: 2022-08-31

Contract Duration: 3,379 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SMARTZONE FOLLOW-ON

Plain-Language Summary

Department of Defense obligated $29.7 million to MOTOROLA SOLUTIONS, INC. for work described as: SMARTZONE FOLLOW-ON Key points: 1. Contract value represents a significant investment in maintaining critical communication infrastructure. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (3379 days) suggests a sustained need for these services. 4. Focus on repair and maintenance indicates a reliance on existing equipment. 5. The award falls within the broader IT and Defense sectors, supporting operational readiness. 6. Lack of competition may limit opportunities for innovation and competitive pricing.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status and lack of detailed pricing breakdowns. However, the total award of nearly $30 million over approximately nine years suggests a substantial commitment to communication equipment maintenance. Without comparable contracts or market rate data for similar repair services, it's difficult to definitively assess if the pricing represents excellent value for money. The firm-fixed-price structure offers some cost certainty, but the absence of competition could mean taxpayers are not benefiting from the most economical pricing available.

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 among multiple vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competitive pressures that drive down costs are absent. This can lead to less efficient use of public funds.

Public Impact

The Department of Defense benefits from the continued operational readiness of its communication equipment. Services delivered include repair and maintenance for communication systems, ensuring functionality. The geographic impact is likely widespread, supporting military operations across various locations. Workforce implications may include specialized technicians required for maintaining advanced communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can stifle innovation by limiting market entry for other providers.
Long-term reliance on a single vendor could create vendor lock-in and reduce flexibility.

Positive Signals

Ensures continuity of essential communication services for the Department of Defense.
Firm-fixed-price contract provides cost predictability for the government.
Motorola Solutions, Inc. is a known entity in communication technology, suggesting potential expertise.

Sector Analysis

This contract falls within the broader Information Technology and Defense sectors, specifically focusing on communication equipment repair and maintenance. The market for such services is substantial, driven by the continuous need for reliable communication systems in both government and commercial applications. Comparable spending benchmarks would typically involve analyzing other government contracts for similar repair and maintenance services, as well as private sector expenditures on maintaining complex communication networks. The size of this contract suggests a significant portion of the Army's communication infrastructure relies on the services provided.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no information provided regarding subcontracting plans or performance related to small businesses. This suggests that the primary contractor, Motorola Solutions, Inc., is expected to perform the majority of the work, and opportunities for small businesses to participate in this specific contract may be limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army'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 at an agreed-upon price. Transparency is often enhanced through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General (IG) jurisdiction would depend on allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Defense Communication Systems
Military Communication Equipment Maintenance
Tactical Communication Systems
Command and Control Systems Repair

Risk Flags

Sole-source award
Lack of competition
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to MOTOROLA SOLUTIONS, INC.. SMARTZONE FOLLOW-ON

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 Army).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2013-05-31. End: 2022-08-31.

What is the track record of Motorola Solutions, Inc. with the Department of Defense for similar communication equipment repair contracts?

Motorola Solutions, Inc. has a long-standing relationship with the Department of Defense, providing a wide range of communication solutions and services. While this specific contract is a sole-source award for communication equipment repair and maintenance, the company has a history of securing competitive contracts for various defense-related communication systems, including public safety radios, command and control systems, and network infrastructure. Their extensive experience in the defense sector suggests a deep understanding of military requirements and operational environments. Analyzing past performance reviews and contract awards for Motorola Solutions within DoD would provide further insight into their reliability and effectiveness in delivering similar services.

How does the per-unit cost of repair for this contract compare to industry benchmarks or other government contracts?

Determining a precise per-unit cost benchmark for this contract is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status and the absence of detailed service line items or unit pricing in the provided data. The contract is a firm-fixed-price award for 'Communication Equipment Repair and Maintenance,' which can encompass a wide array of services and equipment types. Without specific breakdowns of repair tasks, labor rates, or parts costs, a direct comparison to industry benchmarks or other government contracts is not feasible. Typically, such comparisons would require access to detailed pricing structures or data from competitively awarded contracts for similar services.

What are the primary risks associated with a sole-source award for critical communication equipment maintenance?

The primary risks associated with a sole-source award for critical communication equipment maintenance include potential cost overruns, reduced innovation, and vendor lock-in. Without competition, the government may pay higher prices than if multiple vendors had bid, as there is less pressure to offer the most competitive rates. Innovation can be stifled because there is no incentive for alternative providers to develop and offer new or improved solutions. Vendor lock-in is a significant concern, as the government becomes dependent on a single supplier, making it difficult and costly to switch providers in the future, even if performance or pricing deteriorates. This reliance can also create vulnerabilities if the sole-source provider experiences financial difficulties or operational disruptions.

How effective has Motorola Solutions, Inc. been in fulfilling its contractual obligations with the Department of Defense historically?

Motorola Solutions, Inc. has generally been considered an effective provider of communication solutions to the Department of Defense, evidenced by their continued awards and long-term engagements. Their extensive portfolio and specialized expertise in communication technology have made them a key partner for military operations. However, 'effectiveness' can be subjective and is best assessed through detailed performance reviews, past performance ratings, and any documented instances of contract disputes or failures. While this specific contract is sole-source, the company's broader track record suggests a capacity to meet complex defense communication needs. A comprehensive review would involve examining specific contract performance metrics and user feedback where available.

What are the historical spending patterns for communication equipment repair and maintenance within the Department of the Army?

Historical spending patterns for communication equipment repair and maintenance within the Department of the Army are likely substantial and consistent, reflecting the critical nature of these systems for military operations. While specific aggregate data for this category is not provided, the Army, like other branches of the DoD, invests heavily in maintaining its vast array of communication assets, from tactical radios to complex network infrastructure. Spending can fluctuate based on equipment lifecycle, technological upgrades, and operational tempo. Awards like the one to Motorola Solutions, Inc. represent a portion of this ongoing investment. Analyzing historical contract awards for similar services over several fiscal years would reveal trends in spending, key contractors, and the types of equipment being serviced.

What is the potential impact of this contract on the overall IT and Defense sector market for communication equipment repair?

This contract, awarded on a sole-source basis, has a limited direct impact on the broader IT and Defense sector market for communication equipment repair in terms of fostering competition. However, it signifies the continued reliance on established providers like Motorola Solutions, Inc. for critical infrastructure maintenance. For other companies in the sector, it highlights the importance of maintaining strong relationships and demonstrating specialized capabilities to secure future contracts, whether competitive or sole-source. The substantial value of the award also indicates the significant market size and ongoing demand for these specialized services within the defense industry, potentially encouraging other firms to invest in similar capabilities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J12R0178

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: $29,688,111

Exercised Options: $29,688,111

Current Obligation: $29,688,111

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $293,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline