DoD Awards $35M Delivery Order to L3Harris for FMS, SANG Equipment
Contract Overview
Contract Amount: $35,061,445 ($35.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-06
End Date: 2009-11-29
Contract Duration: 541 days
Daily Burn Rate: $64.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: DELIVERY ORDER FOR FMS, SANG
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $35.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: DELIVERY ORDER FOR FMS, SANG Key points: 1. Significant contract value of $35M for specialized communications equipment. 2. L3Harris Technologies, Inc. is a major defense contractor, indicating established capabilities. 3. Fixed-price contract type aims to control costs, but potential for cost overruns exists. 4. The sector is Wireless Communications Equipment Manufacturing, crucial for military operations.
Value Assessment
Rating: fair
The fixed-price contract type suggests an attempt to establish a clear price. However, without specific benchmarks for this type of specialized equipment, it's difficult to definitively assess if $35M represents excellent value. The duration of the order (541 days) also needs to be considered against the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the chances of obtaining the best possible price for the goods or services procured.
Public Impact
Ensures continued operational readiness for critical FMS, SANG systems. Supports advanced wireless communications technology within the defense sector. Potential for job creation and economic activity related to defense manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long duration.
- Reliance on a single vendor for specialized equipment.
- Uncertainty of long-term sustainment and upgrade costs.
Positive Signals
- Fixed-price contract helps manage budget.
- Full and open competition ensures market engagement.
- Award to established contractor suggests reliability.
Sector Analysis
The Wireless Communications Equipment Manufacturing sector is vital for national security, providing essential hardware for military operations. Spending in this area is often driven by technological advancements and specific defense needs, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
This award does not appear to directly benefit small businesses, as it was awarded to a large prime contractor, L3Harris Technologies, Inc. Subcontracting opportunities for small businesses are not specified in the provided data.
Oversight & Accountability
The Department of the Army's oversight is crucial to ensure L3Harris Technologies, Inc. meets the delivery schedule and quality standards for this significant contract. Regular performance reviews and adherence to contract terms are key accountability measures.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns despite fixed-price.
- Long delivery period increases obsolescence risk.
- Limited visibility into small business subcontracting.
- Dependence on a single large contractor.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.1 million to L3HARRIS TECHNOLOGIES, INC.. DELIVERY ORDER FOR FMS, SANG
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 $35.1 million.
What is the period of performance?
Start: 2008-06-06. End: 2009-11-29.
What is the specific nature of the FMS, SANG equipment and its criticality to current operations?
The FMS (Foreign Military Sales) and SANG (Saudi Arabian National Guard) designations suggest this equipment is intended for international partners, likely involving specialized communication systems. Its criticality lies in maintaining interoperability and operational effectiveness for allied forces, directly impacting diplomatic relations and regional security.
How does the $35M price compare to similar procurements for comparable wireless communication equipment, considering the fixed-price nature?
A direct comparison is challenging without detailed specifications of the equipment and its intended use. However, for specialized, defense-grade wireless communication systems, $35M over a 541-day period could be within a reasonable range if it involves advanced technology or large quantities. The fixed-price aspect aims to cap costs, but the initial pricing's competitiveness relies heavily on the pre-award market research and bidding process.
What are the potential risks associated with a fixed-price contract for advanced wireless communications equipment over an extended delivery period?
Risks include potential underestimation of costs by the contractor, leading to quality compromises or delays if profit margins are squeezed. Conversely, if the initial price was too high, the government might overpay. The extended delivery period also increases the risk of technological obsolescence or unforeseen market shifts impacting the value of the procured equipment.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ITT Corporation (UEI: 001216845)
Address: 1919 W COOK RD, FORT WAYNE, IN, 46818
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,061,445
Exercised Options: $35,061,445
Current Obligation: $35,061,445
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T05DJ101
IDV Type: IDC
Timeline
Start Date: 2008-06-06
Current End Date: 2009-11-29
Potential End Date: 2011-11-29 00:00:00
Last Modified: 2019-09-14
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