DoD Awards $116M for SINCGAR Radios to L3Harris Amidst Limited Competition
Contract Overview
Contract Amount: $115,939,124 ($115.9M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-25
End Date: 2021-01-23
Contract Duration: 2,677 days
Daily Burn Rate: $43.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SINCGAR RADIO AND ACESSORIES
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $115.9 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: SINCGAR RADIO AND ACESSORIES Key points: 1. Significant contract value of $115.9M for specialized communication equipment. 2. Sole-source award to L3Harris Global Communications, raising competition concerns. 3. Potential risk associated with reliance on a single supplier for critical radio systems. 4. Spending falls within the broader IT and Defense sectors, specifically communications hardware.
Value Assessment
Rating: questionable
Pricing is difficult to assess without competitive benchmarks. The firm fixed-price contract type suggests cost certainty, but the lack of competition may have led to suboptimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in higher prices than a fully competitive procurement, impacting taxpayer value.
Public Impact
Military readiness may be impacted if these radios are critical for operations. Taxpayers may have overpaid due to the lack of competitive bidding. The long contract duration (2013-2021) suggests sustained reliance on this specific equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm fixed-price contract
Sector Analysis
This contract falls under the manufacturing of wireless communications equipment, a key component of the IT and Defense sectors. Benchmarks for similar sole-source radio procurements are scarce, making direct comparison difficult.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract, and the prime contractor is a large business. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The long duration of this contract warrants a review of its continued necessity and cost-effectiveness.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Dependence on a single supplier for critical equipment.
- No clear indication of small business participation.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $115.9 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. SINCGAR RADIO AND ACESSORIES
Who is the contractor on this award?
The obligated recipient is L3HARRIS GLOBAL COMMUNICATIONS, 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 $115.9 million.
What is the period of performance?
Start: 2013-09-25. End: 2021-01-23.
What was the justification for awarding this contract on a sole-source basis, and were alternatives explored?
The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Alternatives should have been explored, but the data does not confirm this. Further investigation into the procurement file would be necessary to understand the rationale and due diligence performed.
How does the unit cost of these SINCGAR radios compare to similar systems procured competitively?
Without competitive benchmark data, it's impossible to definitively state how the unit cost compares. However, sole-source procurements inherently lack the price pressure found in competitive bidding. It is probable that the unit cost is higher than it would have been under a competitive scenario, representing a potential loss of taxpayer value.
What is the operational criticality of the SINCGAR radio system, and what are the risks of relying on a single supplier?
The SINCGAR (Singles Service Radio) is a widely used tactical radio system in the U.S. Army. Relying on a single supplier for such a critical system poses risks including potential supply chain disruptions, lack of innovation, and vulnerability to price increases. This dependence could impact operational readiness if the supplier faces issues.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1350 JEFFERSON RD, ROCHESTER, NY, 14623
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,939,124
Exercised Options: $115,939,124
Current Obligation: $115,939,124
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T08DD248
IDV Type: IDC
Timeline
Start Date: 2013-09-25
Current End Date: 2021-01-23
Potential End Date: 2021-01-23 12:01:00
Last Modified: 2022-05-16
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