DoD's $144M L3Harris Contract for Wireless Communications Equipment: A Deep Dive
Contract Overview
Contract Amount: $14,437,891 ($14.4M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2013-12-31
Contract Duration: 1,919 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RESERVED
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: RESERVED Key points: 1. Significant contract value of $144.4 million awarded to L3Harris Technologies. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long contract duration (2008-2013) may indicate evolving technological needs or a stable requirement. 4. Focus on wireless communications equipment manufacturing suggests a critical defense capability.
Value Assessment
Rating: questionable
The contract value of $144.4 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar wireless communications equipment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for this equipment, as there was no market pressure to drive down prices.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long duration of the contract could mean the technology is outdated or the need is long-term. Reliance on a single vendor for critical communications equipment could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Award to established defense contractor
- Specific equipment type identified
Sector Analysis
This contract falls within the IT and Defense sectors, specifically manufacturing wireless communications equipment. Benchmarks for similar contracts are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as L3Harris Technologies is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in the procurement process. Further review of the justification for sole-source award and any subsequent oversight is warranted to ensure accountability.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing.
- Risk of technological obsolescence.
- Limited small business participation.
- Long contract duration without clear justification.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. RESERVED
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $14.4 million.
What is the period of performance?
Start: 2008-09-29. End: 2013-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, this involves unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's impossible to fully assess if the government received the best possible value or if the procurement process was sound.
How does the $144.4 million cost compare to the estimated market value for similar wireless communications equipment during the contract period?
Comparing the contract cost to market value is essential for determining value for money. Given this was a sole-source award, a direct comparison is challenging. However, an analysis of industry pricing trends for comparable equipment during 2008-2013, alongside any internal cost estimates the DoD may have had, would be necessary to gauge potential overspending.
What was the technological obsolescence risk associated with a contract awarded in 2008 and ending in 2013 for wireless communications equipment?
Wireless communication technology evolves rapidly. A contract spanning from 2008 to 2013 for such equipment carries a significant risk of obsolescence. It's important to understand if the equipment delivered remained relevant and effective throughout its lifecycle or if it became outdated quickly, diminishing its value to the Air Force.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 10001 JACK FINNEY BLVD FM, GREENVILLE, TX, 03
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,437,891
Exercised Options: $14,437,891
Current Obligation: $14,437,891
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-29
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2012-10-16
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