DoD Spends $32.7M on Subscriber Equipment from Motorola Solutions, Lacking Competition
Contract Overview
Contract Amount: $32,687,491 ($32.7M)
Contractor: Motorola Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-26
End Date: 2012-11-30
Contract Duration: 1,954 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUBSCRIBER EQUIPMENT
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $32.7 million to MOTOROLA SOLUTIONS, INC. for work described as: SUBSCRIBER EQUIPMENT Key points: 1. Significant spending on subscriber equipment highlights reliance on a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. Long contract duration (1954 days) suggests a sustained need, but also a missed opportunity for competitive bidding. 4. The 'Other Communications Equipment Manufacturing' NAICS code provides broad context for the sector.
Value Assessment
Rating: questionable
The total award amount is substantial. Without competitive bidding, it's difficult to assess if the pricing is fair or reflects market value. Benchmarking against similar sole-source contracts would be necessary for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no competition was sought or available. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may be paying a premium for subscriber equipment due to the lack of competitive bidding. The long-term reliance on a single supplier could stifle technological advancements in communication equipment. The Department of Defense's procurement strategy for this essential equipment warrants further scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area is critical for defense operations, but competitive procurement is generally preferred to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract. Future procurements should explore opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award suggests potential gaps in oversight regarding competitive sourcing. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Risk of technological obsolescence if innovation is not encouraged.
- Limited transparency in the procurement process.
- No apparent small business participation.
Tags
other-communications-equipment-manufactu, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.7 million to MOTOROLA SOLUTIONS, INC.. SUBSCRIBER EQUIPMENT
Who is the contractor on this award?
The obligated recipient is MOTOROLA SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $32.7 million.
What is the period of performance?
Start: 2007-07-26. End: 2012-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly vetted?
The provided data does not detail the justification for the sole-source award. A thorough review would involve examining documentation that proves only Motorola Solutions, Inc. could provide the required subscriber equipment, considering factors like unique capabilities, existing infrastructure compatibility, or urgent needs that precluded a competitive process.
How does the per-unit cost of this subscriber equipment compare to similar commercially available products or other government contracts?
Without specific per-unit cost data and comparable market benchmarks, a direct comparison is not possible. Given the sole-source nature, it is plausible that the pricing is higher than what might be achieved through competitive bidding. Further analysis would require access to detailed pricing information and market research.
What is the long-term strategy for acquiring subscriber equipment to ensure future cost-effectiveness and technological relevance?
The long-term strategy should prioritize competitive procurement for future acquisitions of subscriber equipment. This could involve market research to identify multiple potential vendors, breaking down requirements into smaller lots to encourage broader participation, and establishing clear performance metrics to drive innovation and cost savings.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912D107R0037
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7031 COLUMBIA GATEWAY DR 3RD FL, COLUMBIA, MD, 21046
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,107,743
Exercised Options: $32,687,491
Current Obligation: $32,687,491
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2007-07-26
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2016-02-03
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