DoD Awards L3Harris $35.7M for Advanced Electronic Warfare Suite Amidst Limited Competition
Contract Overview
Contract Amount: $35,670,765 ($35.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-01
End Date: 2026-10-01
Contract Duration: 1,218 days
Daily Burn Rate: $29.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) PRODUCTION CONTRACT IAF 777 EFFORT
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $35.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) PRODUCTION CONTRACT IAF 777 EFFORT Key points: 1. Contract awarded to L3Harris Technologies for AIDEWS production. 2. Significant investment in advanced defensive electronic warfare capabilities. 3. Limited competition raises questions about price discovery and taxpayer value. 4. Sector focus on defense electronics and aerospace manufacturing.
Value Assessment
Rating: fair
The contract value of $35.7M for a production run of 1218 units (estimated) is difficult to assess without per-unit cost data. The fixed-price incentive structure suggests an attempt to control costs, but the lack of competitive bidding limits external benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a sole-source or limited-source award. This lack of open competition may lead to higher prices than could be achieved through a fully competitive process, potentially impacting the government's ability to secure the best value.
Taxpayer Impact: The absence of robust competition could result in taxpayers paying a premium for these advanced electronic warfare systems.
Public Impact
Enhances national defense capabilities with advanced electronic warfare technology. Supports the defense industrial base and high-tech manufacturing jobs. Potential for cost overruns due to limited competitive pressure. Ensures critical warfighting systems are equipped with modern countermeasures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of per-unit cost transparency
- Potential for price inflation
Positive Signals
- Acquisition of critical defense technology
- Long-term production contract
- Fixed-price incentive structure aims for cost control
Sector Analysis
This contract falls within the defense electronics sector, specifically focusing on electronic warfare systems. Spending in this area is critical for maintaining technological superiority but often involves high R&D costs and specialized manufacturing, which can limit competition.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large defense contracts often involve complex supply chains, but direct participation by small businesses is not evident from the provided information.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, quality, and adherence to contract terms, especially given the limited competition.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in per-unit pricing.
- Potential for cost growth if performance incentives are not met.
- Dependence on a single contractor for critical technology.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.7 million to L3HARRIS TECHNOLOGIES, INC.. ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) PRODUCTION CONTRACT IAF 777 EFFORT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $35.7 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-10-01.
What is the historical cost performance of L3Harris on similar sole-source or limited-source electronic warfare contracts?
Analyzing L3Harris's past performance on comparable contracts, particularly those awarded with limited competition, would provide valuable insight into their pricing strategies and cost control effectiveness. This historical data could help determine if the current contract's pricing is reasonable or if there's a pattern of inflated costs in non-competitive scenarios.
What steps are being taken to mitigate the risks associated with limited competition and ensure fair pricing?
Given the limited competition, it is essential to understand the specific mechanisms the DoD is employing to ensure fair pricing and value for taxpayers. This could include independent cost estimates, robust negotiation strategies, and stringent performance monitoring to prevent potential cost overruns or quality compromises.
How does the AIDEWS capability compare to commercially available or allied nation electronic warfare systems in terms of cost-effectiveness?
Benchmarking the AIDEWS against similar systems, whether commercial or used by allied nations, can offer a perspective on its cost-effectiveness. Understanding if the unique military requirements justify the cost, or if alternative, more affordable solutions exist, is crucial for optimizing defense spending.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,670,765
Exercised Options: $35,670,765
Current Obligation: $35,670,765
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $305,064
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854017D0002
IDV Type: IDC
Timeline
Start Date: 2023-06-01
Current End Date: 2026-10-01
Potential End Date: 2026-10-01 00:00:00
Last Modified: 2025-12-09
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