DoD's $48.4M AIDEWS contract with L3Harris faces scrutiny over limited competition and potential taxpayer impact
Contract Overview
Contract Amount: $48,395,380 ($48.4M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-04-25
End Date: 2020-02-10
Contract Duration: 2,847 days
Daily Burn Rate: $17.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIDEWS
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $48.4 million to L3HARRIS TECHNOLOGIES, INC. for work described as: AIDEWS Key points: 1. The contract for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems is valued at $48.4M. 2. L3Harris Technologies, Inc. is the sole awardee, raising concerns about competition. 3. The contract type is Firm Fixed Price, offering some cost certainty. 4. The duration of the contract is significant, spanning 2847 days.
Value Assessment
Rating: questionable
The contract's value of $48.4M for AIDEWS is difficult to benchmark without specific performance metrics or comparable contracts. The lack of readily available pricing details for similar systems makes a direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, specifically noted as 'NOT AVAILABLE FOR COMPETITION'. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether the government achieved the best possible price for these critical systems, potentially impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding for essential defense systems. The long contract duration could lock in potentially suboptimal pricing for an extended period. Dependence on a single supplier for critical navigation and guidance systems poses a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price transparency
- Potential for overpayment
- Long contract duration
Positive Signals
- Firm Fixed Price contract type
- Awarded to a known defense contractor
Sector Analysis
This contract falls under the manufacturing of aeronautical and nautical systems, a specialized sector within defense. Spending benchmarks for such niche systems are highly variable and depend on technological complexity and specific requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large corporation suggests a focus on established prime vendors.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the Department of Defense is obtaining fair value. Accountability for the procurement process and justification for limited competition should be thoroughly reviewed.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Long-term commitment to a single vendor
- Risk of technological obsolescence
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.4 million to L3HARRIS TECHNOLOGIES, INC.. AIDEWS
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 Air Force).
What is the total obligated amount?
The obligated amount is $48.4 million.
What is the period of performance?
Start: 2012-04-25. End: 2020-02-10.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' designation, and were alternative competitive strategies explored?
The justification for 'NOT AVAILABLE FOR COMPETITION' is crucial for understanding the procurement's integrity. Without detailed documentation, it's impossible to assess if the government adequately explored options like full and open competition or other competitive strategies. This lack of transparency raises concerns about potential inefficiencies and the absence of market-driven price discovery.
How does the unit cost of the AIDEWS system compare to similar systems procured competitively by other agencies or allies?
A direct comparison of unit costs is challenging without specific product details and performance metrics. However, given the limited competition, it is highly probable that the unit cost is higher than what would be achieved through a robust competitive bidding process. Benchmarking against similar, competitively procured systems is essential for validating value for money.
What are the long-term implications of a sole-source award for critical navigation and guidance systems on technological advancement and future procurement costs?
Sole-source awards can stifle innovation by removing the incentive for the contractor to invest in R&D to stay ahead of potential competitors. This can lead to technological stagnation and higher costs in the long run as the government remains tied to a single, potentially less advanced, solution. Future procurements may face similar limitations if the market is not actively cultivated.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,395,380
Exercised Options: $48,395,380
Current Obligation: $48,395,380
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-04-25
Current End Date: 2020-02-10
Potential End Date: 2020-02-10 00:00:00
Last Modified: 2025-04-21
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