Homeland Security awards $2.3M R&D contract to Association of Public-Safety-Communications Officials for P25 Cap Program

Contract Overview

Contract Amount: $2,306,000 ($2.3M)

Contractor: Association of Public-Safety-Communications Officials-International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-01

End Date: 2026-06-30

Contract Duration: 1,551 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: SERVICES WITH APCO FOR THE P25 CAP PROGRAM.

Place of Performance

Location: DAYTONA BEACH, VOLUSIA County, FLORIDA, 32114

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.3 million to ASSOCIATION OF PUBLIC-SAFETY-COMMUNICATIONS OFFICIALS-INTERNATIONAL, INC. for work described as: SERVICES WITH APCO FOR THE P25 CAP PROGRAM. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded by the Department of Homeland Security's Office of Procurement Operations. 3. The contract has a duration of over 4 years, ending in June 2026. 4. This is a Cost No Fee contract type. 5. The contract was not competed, raising questions about potential value for money. 6. The specific R&D area is classified under NAICS code 541715.

Value Assessment

Rating: questionable

Given this contract was not competed, a direct value-for-money assessment is challenging. Without competitive bids, it's difficult to benchmark pricing against market rates or similar contracts. The Cost No Fee structure implies the government will reimburse allowable costs, but the absence of a negotiated profit margin means the contractor's incentive is primarily cost control rather than aggressive price reduction. Further analysis would require understanding the specific deliverables and the unique capabilities of the awarded contractor.

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 potential bidders. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also raises concerns about whether the government fully explored all available options.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security and public safety agencies utilizing the P25 Cap Program. The contract aims to advance research and development in critical communication technologies. The geographic impact is primarily within Florida, where the contractor is located. Workforce implications may include specialized R&D personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source nature raises concerns about the necessity and justification for not competing.
The Cost No Fee structure requires careful monitoring of allowable costs.

Positive Signals

Focus on critical public safety communications technology (P25 Cap Program).
Contract awarded to an established organization (Association of Public-Safety-Communications Officials-International, Inc.).
Long-term contract duration suggests a sustained need for the R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The P25 Cap Program relates to public safety communications, a critical area for government operations. Benchmarking this specific R&D effort is difficult without more detail on the technical scope, but R&D spending in the physical sciences can range widely depending on the complexity and novelty of the research.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made directly to the Association of Public-Safety-Communications Officials-International, Inc., suggesting it is likely a larger entity. Further investigation would be needed to determine if any small business participation was mandated or occurred.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations if specific concerns arise regarding cost, performance, or compliance. Transparency could be enhanced by making the justification for the sole-source award publicly available.

Related Government Programs

Public Safety Communications
Homeland Security Technology Research
P25 Standards Development

Risk Flags

Lack of Competition
Potential for Cost Overruns (in Cost-Reimbursement aspects)
Uncertainty of R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.3 million to ASSOCIATION OF PUBLIC-SAFETY-COMMUNICATIONS OFFICIALS-INTERNATIONAL, INC.. SERVICES WITH APCO FOR THE P25 CAP PROGRAM.

Who is the contractor on this award?

The obligated recipient is ASSOCIATION OF PUBLIC-SAFETY-COMMUNICATIONS OFFICIALS-INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-06-30.

What is the specific nature of the P25 Cap Program and the R&D being conducted under this contract?

The P25 Cap Program likely refers to initiatives related to the Project 25 (P25) suite of standards, which are crucial for digital interoperable radio communications for public safety agencies in North America. The 'Cap' could denote a specific aspect, such as capacity enhancement, coverage improvement, or a particular technology advancement. The R&D under this contract would therefore focus on advancing the capabilities, efficiency, or security of these P25 systems. This could involve research into new modulation techniques, spectrum efficiency improvements, encryption protocols, or integration with other communication platforms. The specific technical details would be outlined in the contract's Statement of Work (SOW).

Why was this contract awarded on a sole-source basis?

The justification for a sole-source award typically stems from a determination that only one responsible source is capable of meeting the government's needs. For this contract, potential reasons could include the Association of Public-Safety-Communications Officials-International, Inc. (APCO) holding unique intellectual property, proprietary knowledge, or exclusive access to critical data or infrastructure essential for the P25 Cap Program R&D. APCO is a well-established organization in public safety communications standards and best practices, suggesting they may possess specialized expertise or a leadership role in this domain that is difficult to replicate. A formal Justification for Other Than Full and Open Competition (JOFOC) would detail these specific reasons.

What are the potential risks associated with a sole-source R&D contract of this nature?

Sole-source R&D contracts carry inherent risks. Firstly, the lack of competition can lead to higher costs for the government, as there's no market pressure to ensure the most competitive pricing. Secondly, without multiple bidders, there's a reduced opportunity to explore innovative approaches or alternative solutions that other firms might offer. Thirdly, there's a risk of contractor lock-in, where the government becomes overly reliant on a single provider, potentially hindering future flexibility. Finally, R&D outcomes are inherently uncertain; a sole-source award means the government is betting on a single entity's ability to achieve the desired research objectives, which may not materialize.

How does this contract align with broader Department of Homeland Security (DHS) objectives?

This contract directly aligns with DHS's mission to secure the nation and ensure public safety. Effective and interoperable communications are fundamental to emergency response, disaster management, and national security operations. By investing in R&D for the P25 Cap Program, DHS is likely aiming to enhance the capabilities of first responders and other public safety personnel, ensuring they can communicate reliably under various conditions. This supports DHS's strategic goals of strengthening resilience, improving incident response coordination, and leveraging advanced technologies to maintain situational awareness and operational effectiveness.

What is the typical cost structure for 'Cost No Fee' contracts, and what are the implications for oversight?

A 'Cost No Fee' (CNF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs incurred in performing the contract, but receives no fee or profit. This structure is typically used when the contractor is a non-profit organization, a government agency, or when the government has a strong interest in the outcome and wants to minimize contractor profit motive, often in R&D or public service contexts. For oversight, the government must meticulously review and audit the contractor's incurred costs to ensure they are allowable, allocable, and reasonable according to the contract terms and Federal Acquisition Regulation (FAR). The absence of a fee means the contractor's primary motivation is cost control and successful project completion, rather than profit maximization, but rigorous financial oversight remains critical.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RSAT22R00000009

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 351 N WILLIAMSON BLVD, DAYTONA BEACH, FL, 32114

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,496,806

Exercised Options: $2,496,806

Current Obligation: $2,306,000

Actual Outlays: $1,687,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline