DoD awards $11.8M for ALQ-211 LRU-2C, with limited competition and long-term delivery
Contract Overview
Contract Amount: $11,769,492 ($11.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-08-30
End Date: 2025-04-30
Contract Duration: 2,435 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ALQ-211 LRU-2C
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $11.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ALQ-211 LRU-2C Key points: 1. Contract awarded to L3Harris Technologies, Inc. for specialized aircraft parts. 2. The contract has a long performance period, extending into April 2025. 3. Limited competition raises questions about potential price overruns. 4. The contract type is Firm Fixed Price, which shifts some risk to the contractor. 5. This award falls under the 'Other Aircraft Parts' manufacturing sector. 6. The contract value is substantial, indicating a significant need for these components.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific unit cost data or comparisons to similar sole-source procurements. The firm fixed price structure provides some cost certainty, but the lack of competition could lead to less favorable pricing than a more open process. Further analysis of historical pricing for similar components would be needed to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one responsible source is available. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as competitive pressures are absent, potentially leading to less efficient use of public funds.
Public Impact
U.S. Special Operations Command benefits from the acquisition of critical aircraft components. The contract supports the maintenance and operational readiness of specialized aircraft. The geographic impact is primarily within the United States, supporting defense logistics. The contract supports jobs within the aerospace manufacturing sector, specifically in New Jersey.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Long performance period without clear interim reviews could mask cost inefficiencies.
- Lack of transparency in the sole-source justification requires scrutiny.
Positive Signals
- Firm Fixed Price contract shifts some performance risk to the contractor.
- Award to an established contractor may indicate reliability and proven capability.
- Supports critical defense capabilities for U.S. Special Operations Command.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized electronic warfare components like the ALQ-211 system is often characterized by high barriers to entry due to technological complexity and stringent qualification requirements. Spending in this sub-sector is driven by the need for advanced military capabilities and ongoing modernization efforts.
Small Business Impact
There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless L3Harris Technologies, Inc. has specific subcontracting plans with small businesses for this effort.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command's contracting and program management offices. Transparency is limited due to the sole-source nature. Accountability measures are primarily driven by the firm fixed price contract terms, which obligate the contractor to deliver specified goods. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- ALQ-211 Electronic Warfare System
- Special Operations Forces Aviation Support
- Defense Aircraft Component Procurement
- Sole-Source Defense Contracts
Risk Flags
- Sole-source award
- Long contract duration
- Lack of competitive bidding
Tags
defense, department-of-defense, u.s.-special-operations-command, l3harris-technologies, sole-source, firm-fixed-price, aircraft-parts, electronic-warfare, new-jersey, other-aircraft-parts-and-auxiliary-equipment-manufacturing, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to L3HARRIS TECHNOLOGIES, INC.. ALQ-211 LRU-2C
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2018-08-30. End: 2025-04-30.
What is the specific function and importance of the ALQ-211 LRU-2C component?
The ALQ-211 is an integrated electronic warfare (EW) system designed to protect aircraft from radar-guided threats. The LRU-2C likely refers to a specific Line Replaceable Unit within this system, possibly a receiver, transmitter, or processing module. These components are critical for detecting, identifying, and jamming enemy radar signals, thereby enhancing aircraft survivability in hostile environments. Their importance lies in providing a crucial layer of defense for aircrews operating in contested airspace, particularly for special operations missions where survivability is paramount.
How does the sole-source nature of this award impact potential cost savings for the government?
Sole-source awards inherently limit cost savings opportunities because they bypass the competitive bidding process. Without multiple vendors vying for the contract, there is less pressure on the selected contractor (L3Harris Technologies, Inc.) to offer the lowest possible price. While the government may have negotiated terms, the absence of competing proposals means the government cannot be certain it has achieved the best market price. This can lead to higher overall spending compared to a competitively awarded contract for similar goods or services.
What are the risks associated with a long-term contract (over 2 years) for aircraft parts?
Long-term contracts for aircraft parts, like this one extending to April 2025, carry several risks. Firstly, technology can rapidly evolve, potentially making the contracted components obsolete or less effective before the contract expires. Secondly, material costs and manufacturing processes can fluctuate over time, and a fixed-price contract might not adequately account for unforeseen increases, potentially leading to contractor requests for equitable adjustments or reduced quality. Lastly, a long duration without clear performance checkpoints can reduce oversight effectiveness, making it harder to identify and address performance issues or cost overruns early on.
What is L3Harris Technologies, Inc.'s track record with similar defense contracts?
L3Harris Technologies, Inc. is a major defense contractor with a significant history of supplying electronic warfare systems, communication equipment, and other aerospace components to the U.S. military and allied nations. They have a substantial portfolio of contracts, including those involving complex systems integration and manufacturing for various platforms. Their track record generally indicates a capacity to deliver sophisticated defense technology, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract histories for similar EW systems would provide a more granular assessment.
How does this contract's value compare to other procurements for similar aircraft parts?
Direct comparison of this contract's value ($11.8 million) to other procurements for similar aircraft parts is difficult without detailed specifications of the components and the scope of work. However, given that it's for specialized electronic warfare components (ALQ-211 LRU-2C) and awarded sole-source, the value is likely within the expected range for such high-technology, mission-critical items. The duration of the contract (nearly 7 years from award to end date) also contributes to the total value. Broader benchmarks for EW system procurements might show similar or higher values depending on system complexity and quantity.
What are the potential implications of this contract for future defense spending in electronic warfare?
This contract signifies continued investment in electronic warfare capabilities by the U.S. Special Operations Command. It suggests that the ALQ-211 system, or its variants, remains a relevant and necessary component for current and future special operations missions. Such awards often indicate a sustained need for these technologies, potentially leading to follow-on contracts or further development in EW systems. It underscores the strategic importance of EW in modern warfare and suggests that defense budgets will likely continue to allocate significant resources to this domain.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224113R0008
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,769,492
Exercised Options: $11,769,492
Current Obligation: $11,769,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9224114D0006
IDV Type: IDC
Timeline
Start Date: 2018-08-30
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-09-18
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