Army awards $177M contract for communication equipment, with a 7-bid competition
Contract Overview
Contract Amount: $17,736,406 ($17.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-08-19
End Date: 2011-05-02
Contract Duration: 2,813 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200312!025656!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH805 !A!N! !N!0011 !20030819!20050220!127312614!001023472!875632788!N!M/A-COM PRIVATE RADIO SYSTEMS,!3315 OLD FOREST RD !LYNCHBURG !VA!24501!37000!017!25!LOWELL !MIDDLESEX !MASS !+000011259896!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!007!B! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LYNCHBURG, LYNCHBURG (CITY) County, VIRGINIA, 24501
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200312!025656!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH805 !A!N! !N!0011 !20030819!20050220!127312614!001023472!875632788!N!M/A-COM PRIVATE RADIO SYSTEMS,!3315 OLD FOREST RD !LYNCHBURG !VA!24501!37000!017!25!LOWELL !MIDDL… Key points: 1. Contract value of $177.36M for miscellaneous communication equipment. 2. Competition involved 7 bidders, indicating a healthy market for these goods. 3. Contract duration of 2813 days (approx. 7.7 years) suggests a long-term need. 4. Awarded by the Department of the Army, part of the broader Department of Defense. 5. The North American Industry Classification System (NAICS) code 334290 covers 'Other Communications Equipment Manufacturing'. 6. Firm Fixed Price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $177.36M for communication equipment appears reasonable given the long duration of nearly 8 years. Without specific details on the exact equipment procured, a direct per-unit cost comparison is difficult. However, the presence of 7 bidders in a full and open competition suggests that pricing was likely competitive and aligned with market rates. The firm fixed price structure further supports cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven distinct bidders vying for the award. This level of competition is generally positive, suggesting that multiple vendors were capable of meeting the government's requirements and that the market was accessible. The presence of numerous bidders typically leads to more competitive pricing as companies strive to win the contract.
Taxpayer Impact: A robust competition with seven bidders is beneficial for taxpayers as it likely drove down prices and ensured the government received good value for its investment in communication equipment.
Public Impact
The Department of the Army benefits from the acquisition of essential communication equipment. This contract supports the delivery of 'Miscellaneous Communication Equipment' to military operations. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications are likely within the manufacturing and logistics sectors supporting communication equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to technology obsolescence if not managed proactively.
- Reliance on a single contractor for a long period might reduce future competitive opportunities.
- Potential for scope creep over the extended performance period if not strictly managed.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Full and open competition indicates a healthy and accessible market.
- Multiple bidders suggest a robust supply chain for this type of equipment.
Sector Analysis
The contract falls within the 'Electronics and Communication' sector, specifically under the NAICS code 334290 for 'Other Communications Equipment Manufacturing'. This sector is critical for national defense and public safety, involving the production of a wide range of electronic communication devices. Spending in this area is often substantial within the Department of Defense, reflecting the need for advanced and reliable communication systems. Comparable spending benchmarks would typically be found within other large defense contracts for similar electronic systems.
Small Business Impact
There is no explicit indication of small business set-asides for this contract, and the prime contractor, L3Harris Technologies, Inc., is a large corporation. However, large prime contractors often engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities generated by this award.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a Firm Fixed Price contract, cost-related oversight might be less intensive than cost-plus contracts. Transparency is generally maintained through contract databases like FPDS. The Department of Defense's Inspector General would have jurisdiction over any investigations into fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Communications Systems
- Army Tactical Communications
- Electronic Warfare Systems
- Command and Control Systems
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Potential for contractor complacency over extended performance period.
- Need for detailed review of specific equipment procured for value assessment.
Tags
department-of-defense, department-of-the-army, communication-equipment, firm-fixed-price, full-and-open-competition, l3harris-technologies, naics-334290, psc-5895, virginia, large-contract, long-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to L3HARRIS TECHNOLOGIES, INC.. 200312!025656!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH805 !A!N! !N!0011 !20030819!20050220!127312614!001023472!875632788!N!M/A-COM PRIVATE RADIO SYSTEMS,!3315 OLD FOREST RD !LYNCHBURG !VA!24501!37000!017!25!LOWELL !MIDDLESEX !MASS !+000011259896!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !5!B!M! !A! !99990909!B
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.7 million.
What is the period of performance?
Start: 2003-08-19. End: 2011-05-02.
What specific types of 'Miscellaneous Communication Equipment' were procured under this contract?
The provided data identifies the product service code as '5895' for 'MISCELLANEOUS COMMUNICATION EQUIPMENT'. While the contract award notice does not detail the specific items, this code typically encompasses a broad range of communication devices not classified elsewhere. This could include items such as signal converters, communication system components, specialized radios, or other electronic equipment used for transmitting and receiving information. A deeper dive into contract line item details or technical specifications would be required for a precise list.
How does the per-unit cost of this equipment compare to similar contracts or market rates?
A direct per-unit cost comparison is not feasible with the provided data alone. The contract value is $177.36 million over a duration of 2813 days (approximately 7.7 years). The NAICS code 334290 covers a wide array of 'Other Communications Equipment Manufacturing'. Without knowing the exact quantities and specifications of the equipment purchased, benchmarking per-unit costs against similar contracts or market rates is impossible. The firm fixed price nature and the competitive bidding process suggest that the pricing was likely market-driven at the time of award.
What is the track record of L3Harris Technologies, Inc. in fulfilling similar Department of Defense contracts?
L3Harris Technologies, Inc. is a major defense contractor with a significant history of fulfilling complex contracts for the Department of Defense across various domains, including communications, electronics, and information technology. While this specific contract award notice doesn't detail their performance history, L3Harris is generally recognized for its capabilities in these areas. Their extensive portfolio includes numerous awards for communication systems, avionics, and electronic warfare. A comprehensive assessment would involve reviewing their past performance ratings on similar contracts and their overall financial stability.
What are the potential risks associated with a contract of this duration (nearly 8 years)?
Contracts spanning nearly eight years carry inherent risks, primarily related to technological obsolescence and potential shifts in requirements. Communication technology evolves rapidly, and equipment procured today might be outdated or less effective by the end of the contract period. There's also a risk of the contractor becoming complacent or less responsive over such a long term. Furthermore, unforeseen geopolitical changes or evolving military needs could render the procured equipment less relevant, necessitating costly modifications or replacements. Effective contract management, including regular reviews and potential for contract modifications, is crucial to mitigate these risks.
How does the level of competition (7 bidders) impact the overall value for taxpayers?
A competition involving seven bidders for this contract is a strong positive indicator for taxpayer value. A higher number of bidders generally leads to more aggressive pricing as companies compete to win the contract. It suggests that the market for 'Miscellaneous Communication Equipment' is robust and accessible to multiple capable vendors. This competitive pressure helps ensure that the government is not overpaying for the goods and services received. The firm fixed price nature of the contract further locks in costs, providing cost certainty and protecting taxpayers from unexpected price increases.
What is the historical spending trend for 'Miscellaneous Communication Equipment' by the Department of the Army?
The provided data represents a single contract award from 2003. To understand historical spending trends for 'Miscellaneous Communication Equipment' by the Department of the Army, a broader analysis of procurement data over multiple fiscal years would be necessary. This would involve querying databases like FPDS for all contracts under NAICS code 334290 and PSC 5895 awarded to the Army. Such an analysis would reveal patterns in spending volume, average contract values, common contractors, and fluctuations in demand over time, providing context for the significance of this particular award.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 221 JEFFERSON RIDGE PKWY, LYNCHBURG, VA, 05
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0701DH805
IDV Type: IDC
Timeline
Start Date: 2003-08-19
Current End Date: 2011-05-02
Potential End Date: 2011-05-02 00:00:00
Last Modified: 2011-08-09
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