DoD awards $8.9M for LMR systems in Romania & Bulgaria, with limited competition

Contract Overview

Contract Amount: $8,930,939 ($8.9M)

Contractor: Solutions71, LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-21

End Date: 2025-12-20

Contract Duration: 1,825 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LMR SYSTEMS IN ROMANIA&BULGARIA (ROBU)

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to SOLUTIONS71, LLC for work described as: LMR SYSTEMS IN ROMANIA&BULGARIA (ROBU) Key points: 1. Value for money is difficult to assess due to lack of detailed cost breakdowns and limited competition. 2. Competition dynamics show a sole-source award, raising concerns about price discovery and potential overpayment. 3. Risk indicators include the sole-source nature of the award and the long contract duration. 4. Performance context is limited, with no specific performance metrics or outcomes detailed in the provided data. 5. Sector positioning places this contract within the Defense sector, specifically for telecommunications apparatus. 6. The contract's value is relatively small in the context of overall DoD spending, but its strategic importance for regional communications is notable.

Value Assessment

Rating: questionable

Benchmarking the value of this $8.9 million contract is challenging without comparable sole-source awards or detailed cost breakdowns. The fixed-price nature provides some cost certainty, but the lack of competition suggests the government may not have secured the best possible price. The contract's duration of five years also warrants scrutiny regarding potential price escalations over time. Without more information on the specific equipment and services, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SOLUTIONS71, LLC, was solicited. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The absence of multiple bidders means there was no competitive pressure to drive down prices or encourage innovative solutions. The rationale for this sole-source award is not provided, which is a key factor in assessing its justification.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a competitive bidding process, there's a higher risk that the awarded price is not the most cost-effective option available.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel operating in Romania and Bulgaria, who will receive enhanced Land Mobile Radio (LMR) systems. The services delivered include the provision and potential maintenance of critical communication infrastructure. The geographic impact is focused on U.S. military operations within Romania and Bulgaria. Workforce implications are likely to involve specialized technical personnel for installation, maintenance, and support of the LMR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Long contract duration (5 years) could lead to price increases over time without competitive re-evaluation.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and value of the delivered systems.
Absence of small business subcontracting goals raises questions about opportunities for smaller enterprises in this contract.
The specific nature of 'Telephone Apparatus Manufacturing' (NAICS 334210) for a sole-source award warrants further investigation into the necessity of this specific vendor.

Positive Signals

The contract addresses a specific need for LMR systems in key strategic locations (Romania & Bulgaria).
The firm-fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.
The award is managed by the Department of the Army, a major component of the DoD with established procurement processes.
The contract is for a definitive contract, suggesting a clear scope and expected delivery.

Sector Analysis

This contract falls within the telecommunications equipment manufacturing sector, specifically related to radio communication systems. The market for such specialized LMR systems can be niche, often involving a limited number of qualified vendors capable of meeting stringent military requirements. While the overall market for telecommunications apparatus is substantial, contracts for specific military-grade LMR solutions are less common and may be subject to unique procurement dynamics, including sole-source awards when specific capabilities are required.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (SB=false) and the contractor, SOLUTIONS71, LLC, is not explicitly identified as a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The absence of specific subcontracting goals in the award details means that opportunities for small businesses to participate in fulfilling this contract are not guaranteed and would depend on the prime contractor's discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Department of the Army's procurement oversight bodies. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Accountability measures would be tied to the contract's terms and conditions, including delivery schedules and technical specifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Communications Systems Procurement
Tactical Radio Systems
NATO Communications Infrastructure
Foreign Military Sales (related context)
Telecommunications Apparatus Manufacturing

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed performance metrics hinders assessment of contract effectiveness.
Long contract duration may lead to technological obsolescence or unfavorable price adjustments over time.
Limited public information on contractor's past performance for similar systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to SOLUTIONS71, LLC. LMR SYSTEMS IN ROMANIA&BULGARIA (ROBU)

Who is the contractor on this award?

The obligated recipient is SOLUTIONS71, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2020-12-21. End: 2025-12-20.

What is the specific justification for awarding this contract on a sole-source basis to SOLUTIONS71, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent requirements where competition is not feasible, or specific interoperability requirements. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state why competition was precluded. This lack of transparency is a significant concern for assessing value and fairness.

How does the unit cost of the telephone apparatus compare to market rates or similar government procurements?

Determining the per-unit cost (CPU) for the telephone apparatus is not possible with the given data. The contract value is a total award amount ($8.9M) over a duration of 1825 days (5 years), and the number of units or specific types of apparatus are not specified. Furthermore, since this is a sole-source award, there are no comparable bids to benchmark against. To assess the CPU, one would need details on the quantity and specifications of the LMR equipment being procured and ideally, data from competitive solicitations for similar equipment.

What are the key performance indicators (KPIs) and performance standards for this contract?

The provided data does not specify the key performance indicators (KPIs) or performance standards for this contract. While it is a firm-fixed-price contract, which implies adherence to defined specifications and delivery schedules, the specific metrics for evaluating the LMR systems' performance (e.g., reliability, coverage, data rates, uptime) are not detailed. Understanding these KPIs would be crucial for assessing the contractor's performance and the overall effectiveness of the procured communication systems in meeting the DoD's operational requirements in Romania and Bulgaria.

What is the track record of SOLUTIONS71, LLC in delivering similar LMR systems or defense communication contracts?

Information regarding the track record of SOLUTIONS71, LLC in delivering similar LMR systems or defense communication contracts is not provided in the data. To assess their capability and past performance, one would need to review their contract history, including past performance evaluations on similar government contracts. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to SOLUTIONS71, LLC, particularly those involving communication systems for military or international applications, and examining any associated performance reviews or ratings.

How does the total contract value of $8.9 million compare to historical spending on LMR systems by the Department of Defense in similar regions?

Comparing the $8.9 million contract value to historical spending on LMR systems by the DoD in similar regions requires access to broader historical spending data. This specific contract is for LMR systems in Romania and Bulgaria over five years. To provide context, one would need to analyze past DoD procurements for LMR systems in European theaters or other overseas bases, considering factors like the number of users, system complexity, and duration. Without such comparative data, it's difficult to ascertain if $8.9 million represents a typical, high, or low investment for this type of capability in the specified geographic context.

What are the potential risks associated with the 5-year duration of this contract?

The 5-year duration (1825 days) of this firm-fixed-price contract presents several potential risks. Firstly, technology in the telecommunications sector evolves rapidly; a 5-year-old system might become outdated or less effective compared to newer technologies, potentially impacting operational capabilities. Secondly, without periodic re-competition or price adjustments, the fixed price might not reflect changes in market conditions or component costs over the contract's life, potentially leading to the government overpaying in later years. Thirdly, a long duration can reduce flexibility if the DoD's requirements change significantly or if a more cost-effective solution becomes available.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 46020 MANEKIN PLZ STE 130, DULLES, VA, 20166

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,930,939

Exercised Options: $8,930,939

Current Obligation: $8,930,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline