DHS awards $21.3M for Land Mobile Radio services to RELM Communications, Inc

Contract Overview

Contract Amount: $21,307,677 ($21.3M)

Contractor: Relm Communications, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-28

End Date: 2021-01-31

Contract Duration: 1,952 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAND MOBILE RADIO (LMR) INFRASTRUCTURE&ACCESSORIES AND OPERATIONS AND MAINTENANCE (O&M) SERVICES

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.3 million to RELM COMMUNICATIONS, INC. for work described as: LAND MOBILE RADIO (LMR) INFRASTRUCTURE&ACCESSORIES AND OPERATIONS AND MAINTENANCE (O&M) SERVICES Key points: 1. Contract value represents a significant investment in critical communication infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. The duration of the contract (over 5 years) indicates a long-term need for these services. 4. The fixed-price contract type shifts cost risk to the contractor. 5. The services provided are essential for operational continuity and emergency response. 6. The geographic scope is limited to Florida, suggesting a regional focus for these services.

Value Assessment

Rating: good

The total award of $21.3 million over approximately five years for LMR infrastructure and O&M services appears reasonable given the critical nature of the equipment and services. Benchmarking against similar large-scale LMR contracts is challenging without more specific details on the scope of services and equipment provided. However, the firm fixed-price nature of the contract provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple vendors were likely considered, and the exclusion of specific sources was justified. The presence of 6 bidders suggests a healthy level of competition for this requirement, which generally leads to better pricing and value for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among vendors.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, benefits from reliable and maintained communication systems. Essential services include the provision, maintenance, and operation of Land Mobile Radio infrastructure and accessories. The geographic impact is concentrated in Florida, supporting operations within that state. Workforce implications include the need for skilled technicians for installation, maintenance, and support of the LMR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment or proprietary software is used.
Reliance on a single vendor for critical infrastructure maintenance could pose risks if the vendor experiences financial difficulties or operational disruptions.

Positive Signals

The use of full and open competition mitigates some risks by ensuring multiple vendors were considered.
The firm fixed-price contract structure provides cost predictability.
The long-term nature of the contract suggests a stable and reliable service provider is intended.

Sector Analysis

The Land Mobile Radio (LMR) market is a specialized segment within the broader wireless communications industry. This contract falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. The market is characterized by high reliability requirements, particularly for public safety and government agencies. Spending in this sector often involves significant upfront infrastructure costs and ongoing maintenance, making long-term contracts common. Comparable spending benchmarks would depend on the specific scale and technological sophistication of the LMR systems deployed.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, RELM Communications, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the competition was geared towards larger, established providers capable of meeting the extensive requirements of LMR infrastructure and O&M services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security and the Transportation Security Administration. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Communications Systems
Transportation Security Administration Radio Systems
Federal Land Mobile Radio Networks
Public Safety Communications Infrastructure

Risk Flags

Potential for technology obsolescence over the contract duration.
Reliance on a single vendor for critical infrastructure maintenance.
Lack of detailed performance metrics in the award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.3 million to RELM COMMUNICATIONS, INC.. LAND MOBILE RADIO (LMR) INFRASTRUCTURE&ACCESSORIES AND OPERATIONS AND MAINTENANCE (O&M) SERVICES

Who is the contractor on this award?

The obligated recipient is RELM COMMUNICATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2015-09-28. End: 2021-01-31.

What is the specific nature of the LMR infrastructure and accessories being provided, and how does it compare to current industry standards?

The provided data does not detail the specific models or technical specifications of the Land Mobile Radio (LMR) infrastructure and accessories. However, LMR systems are critical for two-way voice communication, often used by public safety and government agencies. They typically involve base stations, mobile radios, portable radios, antennas, and associated networking equipment. Current industry standards are rapidly evolving towards digital technologies (like P25) and integrated data capabilities, offering enhanced features such as encryption, GPS location services, and interoperability. Without more granular information on the awarded contract's components, it's difficult to definitively assess its alignment with the latest standards or its technological sophistication. Future analysis could benefit from details on whether the procured systems are analog or digital, their frequency bands, and any data transmission capabilities.

How does the per-unit cost or overall value of this contract compare to similar LMR procurements by other federal agencies or state/local governments?

Directly comparing the $21.3 million total award value to similar LMR procurements is challenging without detailed breakdowns of the scope of work, quantities of equipment, and service levels. However, the contract's duration of approximately 5 years (1952 days) and its firm fixed-price nature suggest a significant, long-term commitment. LMR systems are capital-intensive, involving substantial costs for infrastructure deployment, hardware, software, and ongoing maintenance. Large-scale procurements for major metropolitan areas or federal agencies can easily run into tens or hundreds of millions of dollars over their lifecycle. The fact that this contract was competed under 'full and open competition after exclusion of sources' with 6 bidders implies a market capable of supporting such investments and suggests that pricing was likely scrutinized against competitive offers. A more precise benchmark would require access to detailed cost elements and service level agreements from comparable contracts.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with the O&M services, and how is RELM Communications, Inc.'s performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the Operations and Maintenance (O&M) services under this contract. Typically, for LMR O&M, SLAs would focus on metrics such as system uptime (e.g., 99.9% availability), response times for maintenance requests, repair turnaround times, and adherence to preventative maintenance schedules. Performance measurement would likely involve regular reporting by RELM Communications, Inc., site inspections, and user feedback from the Transportation Security Administration. The contracting officer's representative (COR) would be responsible for monitoring performance against the contract requirements. Without access to the contract's SOW and SLAs, a thorough assessment of performance measurement is not possible.

What is RELM Communications, Inc.'s track record with federal contracts, particularly in the LMR or wireless communications sector?

RELM Communications, Inc. has a history of federal contracting, as evidenced by this award from the Department of Homeland Security. While the provided data doesn't offer a comprehensive history, it indicates this is a Delivery Order (aw: DELIVERY ORDER) under a larger contract vehicle, suggesting prior selection or pre-qualification. To assess their track record thoroughly, one would need to examine their past performance ratings on federal contracts (e.g., through CPARS - Contractor Performance Assessment Reporting System), the types and values of previous awards, and any instances of contract disputes or terminations. Their specialization in LMR infrastructure and O&M implies a focus within the wireless communications sector. A deeper dive into FPDS or other federal procurement databases would reveal the extent and nature of their prior government work.

Given the contract's duration and value, what are the potential long-term risks associated with technology obsolescence or vendor viability?

The contract spans from September 2015 to January 2021, a period of over five years. A significant risk in any technology-dependent contract of this length is obsolescence. LMR technology evolves, and systems procured in 2015 might be considered less advanced by 2021, potentially impacting interoperability or feature sets. However, LMR is a mature technology, and upgrades or phased replacements are common. Vendor viability is another concern; RELM Communications, Inc.'s financial health and continued operational capacity are crucial for ensuring uninterrupted service. The firm fixed-price nature, while beneficial for cost control, could strain the vendor if unforeseen maintenance issues arise or if market prices for components increase significantly beyond projections. Government oversight and contingency planning are key to mitigating these risks.

How does this spending align with broader federal initiatives or spending patterns in critical infrastructure communications?

This $21.3 million award for LMR infrastructure and O&M services aligns with consistent federal spending on maintaining and upgrading critical communication systems for public safety and national security. Agencies like DHS, DoD, and others rely heavily on robust radio communication networks. Federal spending in this area often reflects a commitment to ensuring interoperability, reliability, and security of communication channels, especially in the post-9/11 era. While specific dollar amounts fluctuate based on agency needs and technology cycles, the underlying requirement for secure and dependable LMR systems remains a constant. This contract represents a piece of the larger federal investment in ensuring operational continuity and emergency response capabilities across various departments and missions.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSTS03-15-Q-ORC007

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BK Technologies Inc.

Address: 7100 TECHNOLOGY DR, MELBOURNE, FL, 32904

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,406,677

Exercised Options: $21,307,677

Current Obligation: $21,307,677

Actual Outlays: $54,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSS0112D0028

IDV Type: IDC

Timeline