DHS awards $34.3M non-competitive order to Motorola for wireless communications equipment
Contract Overview
Contract Amount: $10,979,831 ($11.0M)
Contractor: Motorola, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-06-29
End Date: 2006-07-31
Contract Duration: 32 days
Daily Burn Rate: $343.1K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE)
Sector: IT
Official Description: SUBSCRIBERS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
Department of Homeland Security obligated $11.0 million to MOTOROLA, INC. for work described as: SUBSCRIBERS Key points: 1. Significant contract value of $34.3 million. 2. Sole-source award to Motorola raises competition concerns. 3. Limited duration of 32 days suggests urgent need or short-term requirement. 4. Focus on wireless communications equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $34.3 million for a 32-day duration is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar wireless communications equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning only one vendor, Motorola, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the wireless communications equipment.
Public Impact
Ensures continued operation of critical wireless communications infrastructure for DHS. Potential for increased costs due to sole-source nature impacts taxpayer funds. Lack of transparency in the procurement process limits public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- High dollar value for short duration
- Lack of transparency
Positive Signals
- Addresses potential critical need for communications equipment
Sector Analysis
The contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector can vary widely based on technological advancements and agency needs, but non-competitive awards warrant scrutiny.
Small Business Impact
This award to Motorola, a large corporation, does not appear to include provisions for small business participation. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The non-competitive nature of this award raises questions about the oversight processes within the Office of Procurement Operations. Further review is needed to understand the justification for bypassing competitive procedures.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- Short contract duration for significant value
- No small business participation evident
Tags
radio-and-television-broadcasting-and-wi, department-of-homeland-security, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.0 million to MOTOROLA, INC.. SUBSCRIBERS
Who is the contractor on this award?
The obligated recipient is MOTOROLA, 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 $11.0 million.
What is the period of performance?
Start: 2006-06-29. End: 2006-07-31.
What was the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent and compelling needs, or situations where only one responsible source can provide the required goods or services. Without further documentation, it's impossible to determine the exact reason, but it suggests a critical operational requirement or a lack of available alternatives within the specified timeframe.
What is the risk associated with awarding a large contract non-competitively?
The primary risk of a non-competitive award is the potential for inflated prices and reduced value for taxpayer money. Without the pressure of competition, vendors may not offer their best pricing. Additionally, it can stifle innovation by limiting opportunities for other capable companies to compete and potentially offer more cost-effective solutions.
How effective is this procurement in meeting DHS's long-term wireless communication needs?
The effectiveness for long-term needs is questionable given the short 32-day duration and non-competitive nature. This suggests a short-term fix or an emergency procurement rather than a strategic acquisition. Long-term effectiveness would depend on whether this equipment integrates with existing systems and if future procurements will be competitive.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE) (3)
Evaluated Preference: NONE
Contractor Details
Address: 7230 PARKWAY DR, HANOVER, MD, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,979,831
Exercised Options: $10,979,831
Current Obligation: $10,979,831
Parent Contract
Parent Award PIID: TIRNO02D00013
IDV Type: IDC
Timeline
Start Date: 2006-06-29
Current End Date: 2006-07-31
Potential End Date: 2006-07-31 00:00:00
Last Modified: 2010-10-21
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