DHS Coast Guard Awards $1.39B to L3Harris for Navigation Systems, Sole-Source
Contract Overview
Contract Amount: $13,911,111 ($13.9M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-16
End Date: 2028-09-30
Contract Duration: 1,110 days
Daily Burn Rate: $12.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MMR DO#5
Place of Performance
Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909
Plain-Language Summary
Department of Homeland Security obligated $13.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MMR DO#5 Key points: 1. Significant award to L3Harris Technologies, Inc. for critical navigation systems. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long-term contract (2028) suggests sustained need for these systems. 4. Focus on Search, Detection, Navigation, Guidance systems highlights operational importance.
Value Assessment
Rating: questionable
The contract value of $1.39 billion is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to lower bids.
Taxpayer Impact: The lack of competition in this large sole-source award means taxpayers may be paying a premium for these essential navigation systems.
Public Impact
Ensures continued operational capability for the U.S. Coast Guard's search and navigation missions. Supports advanced technology in maritime safety and security. Potential for increased costs due to sole-source nature impacts taxpayer value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value requires careful monitoring.
- Long contract duration may not reflect evolving technology needs.
Positive Signals
- Provides critical systems for Coast Guard operations.
- Long-term commitment ensures system availability.
Sector Analysis
This award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security and maritime operations, but often involves specialized, high-cost equipment.
Small Business Impact
The data does not indicate any specific provisions or subcontracting goals for small businesses within this sole-source award. Further analysis would be needed to determine potential small business involvement.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight from the Department of Homeland Security to ensure the government receives the best possible value and that the contractor meets all performance requirements.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- High contract value
- Long contract duration
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $13.9 million to L3HARRIS TECHNOLOGIES, INC.. MMR DO#5
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2025-09-16. End: 2028-09-30.
What justification was provided for the sole-source award, and have alternative solutions been thoroughly explored?
The justification for a sole-source award is critical, especially for a contract of this magnitude. Agencies typically cite unique capabilities, lack of alternatives, or urgent needs. Without this justification, it's impossible to assess if taxpayer funds are being used efficiently. Thorough exploration of alternatives ensures the government isn't unnecessarily limiting competition and potentially overpaying.
How will the government ensure fair pricing and performance throughout the contract's duration, given the lack of competition?
With a sole-source contract, robust government oversight is paramount. This includes detailed performance metrics, regular progress reviews, and potentially independent cost analyses. Establishing clear benchmarks and exercising contract options judiciously can help mitigate risks associated with limited price discovery and ensure the contractor remains incentivized to deliver quality services at a reasonable cost.
What is the long-term strategy for acquiring these navigation systems, and will future procurements be competed?
Understanding the long-term acquisition strategy is vital. If these systems are critical and likely to be needed repeatedly, the agency should outline a plan for future competition, perhaps through phased procurements or by fostering new market entrants. Relying on sole-source awards indefinitely can stifle innovation and lead to sustained higher costs for the government.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701
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: $13,911,111
Exercised Options: $13,911,111
Current Obligation: $13,911,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z02322D93110001
IDV Type: IDC
Timeline
Start Date: 2025-09-16
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 06:09:07
Last Modified: 2025-09-18
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