Army awards $472M contract for SINCGARS radio systems to L3Harris Technologies
Contract Overview
Contract Amount: $47,196,495 ($47.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-11
End Date: 2012-04-30
Contract Duration: 871 days
Daily Burn Rate: $54.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS)
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $47.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS) Key points: 1. Contract value represents a significant investment in tactical communication systems. 2. L3Harris Technologies, a major defense contractor, secured this award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract (871 days) indicates a medium-term supply requirement. 5. The award type (Firm Fixed Price) shifts cost risk to the contractor. 6. The contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing NAICS code.
Value Assessment
Rating: fair
The total contract value of $471,964,950 for the SINCGARS system appears substantial. Benchmarking this against similar tactical radio system procurements would be necessary for a definitive value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the price is competitive. However, without detailed cost breakdowns or comparisons to market rates for similar systems, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows one award, but it does not specify the number of bids received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The government likely received multiple proposals, allowing for comparison and selection of the most advantageous offer.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation among defense contractors. This process ensures that the government is not locked into a single supplier, promoting market efficiency and potentially leading to cost savings over the life of the contract.
Public Impact
The primary beneficiaries are the U.S. Army personnel who will utilize the SINCGARS radio systems for tactical communications. The contract delivers essential ground and airborne radio systems crucial for battlefield operations. The geographic impact is likely widespread, supporting Army operations globally. This contract supports jobs within the defense manufacturing sector, specifically in radio and wireless communications equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if SINCGARS becomes the sole standard without future competitive refreshes.
- Reliance on a single contractor for a critical communication system could pose supply chain risks.
- The firm fixed-price nature might incentivize cost-cutting that could impact long-term reliability if not closely monitored.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm fixed-price contract structure places cost risk on the contractor.
- SINCGARS is a proven and widely adopted tactical radio system, suggesting operational maturity.
Sector Analysis
This contract falls within the defense electronics sector, specifically focusing on tactical radio communication systems. The market for such equipment is dominated by a few large defense contractors capable of meeting stringent military specifications. The SINCGARS (Single Channel Ground and Airborne Radio System) is a well-established family of radios used extensively by the U.S. military and allied forces. Spending in this area is consistent with the ongoing need for secure and reliable battlefield communications.
Small Business Impact
The provided data indicates that small business participation was not a primary set-aside factor for this specific contract (ss: false, sb: false). While L3Harris Technologies is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on L3Harris's internal policies and the specific requirements of the SINCGARS system components. Further analysis would be needed to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting command and program executive offices responsible for tactical communications. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Radio Systems
- Military Communications Equipment
- Department of the Army Procurements
- Defense Communications Networks
Risk Flags
- Potential for supply chain vulnerabilities
- Risk of technological obsolescence
- Dependence on a single prime contractor for critical systems
Tags
defense, department-of-the-army, l3harris-technologies, sincgars, tactical-radio, firm-fixed-price, full-and-open-competition, wireless-communications-equipment-manufacturing, radio-and-television-broadcasting, indiana, us-army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.2 million to L3HARRIS TECHNOLOGIES, INC.. SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS)
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 $47.2 million.
What is the period of performance?
Start: 2009-12-11. End: 2012-04-30.
What is the historical spending trend for SINCGARS or similar tactical radio systems by the Department of the Army?
Historical spending on SINCGARS and related tactical radio systems by the Department of the Army has been substantial and consistent over the past two decades, reflecting the enduring need for reliable battlefield communications. While the specific $471.9 million award to L3Harris Technologies is a significant single contract, it represents part of a larger, ongoing investment. The Army has historically procured these systems through various contract vehicles, often involving competitive bidding processes to ensure value. Fluctuations in spending can be attributed to modernization efforts, deployment cycles, and evolving technological requirements. Analyzing past contract awards for SINCGARS variants and comparable radio systems would reveal patterns of procurement volume, average contract values, and the primary awardees, providing context for the current award's significance within the broader budgetary landscape for tactical communications.
How does the unit cost of the SINCGARS radios under this contract compare to previous procurements or industry benchmarks?
Determining the precise unit cost for the SINCGARS radios under this $471.9 million contract is challenging without knowing the exact quantity of units procured. The contract data does not explicitly state the number of radio systems being purchased. However, if we assume a typical unit cost for a SINCGARS radio (which can range significantly based on configuration and features, often in the thousands of dollars per unit), we could estimate the quantity. Comparing this estimated unit cost to historical data from previous SINCGARS procurements or publicly available industry benchmarks for similar tactical radios would be crucial. Factors such as technological advancements, inflation, and the competitive landscape at the time of bidding influence unit pricing. A firm fixed-price contract suggests the government secured a set price, but its competitiveness relative to market rates or prior acquisitions requires detailed analysis of the quantity and specific system configurations.
What is L3Harris Technologies' track record with the SINCGARS program and similar defense communication contracts?
L3Harris Technologies, and its predecessor companies, have a significant and established track record with the SINCGARS program and the broader defense communication systems market. L3Harris is a recognized leader in providing advanced communication solutions to military and government customers. Their experience encompasses the development, manufacturing, and sustainment of tactical radio systems, including SINCGARS variants. The company has consistently secured large contracts for communication equipment, demonstrating its capability to meet stringent military requirements and delivery schedules. Their performance history on similar large-scale defense contracts would be a key factor in the Army's decision-making process, suggesting a level of confidence in their ability to execute this $471.9 million award successfully. Past performance evaluations and contract close-out data would provide further insight into their reliability and quality.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks associated with this $471.9 million SINCGARS contract include potential supply chain disruptions for critical components, technological obsolescence if the system is not updated, and performance issues if the firm fixed-price contract incentivizes shortcuts. Given the firm fixed-price nature, a key risk is that L3Harris Technologies might face cost overruns if unforeseen issues arise, potentially impacting their profitability or willingness to invest in long-term support. Mitigation strategies likely include robust quality assurance and acceptance testing protocols by the Army, clear performance metrics within the contract, and potentially provisions for contract modifications or sustainment support. The government's oversight and the contractor's established reputation also serve as risk mitigation factors, aiming to ensure timely delivery of reliable communication systems.
How does this contract align with the Department of the Army's broader modernization and communication strategy?
This $471.9 million contract for SINCGARS radio systems aligns with the Department of the Army's ongoing strategy to maintain and modernize its tactical communication capabilities. SINCGARS, while a mature system, remains a cornerstone of battlefield communications for many units. This award likely supports the sustainment and potential upgrades of existing SINCGARS fleets, ensuring operational readiness. It complements broader modernization efforts that may include integrating SINCGARS with newer networked systems or preparing for future communication technologies. The Army's strategy typically involves a mix of maintaining legacy systems for interoperability and cost-effectiveness while investing in next-generation capabilities. This contract ensures the continued availability of a proven, reliable communication tool essential for current operations.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ITT Corporation (UEI: 001216845)
Address: 1919 W COOK RD, FORT WAYNE, IN, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $47,196,495
Exercised Options: $47,196,495
Current Obligation: $47,196,495
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T05DJ101
IDV Type: IDC
Timeline
Start Date: 2009-12-11
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2013-02-22
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