L3Harris Technologies awarded $30.5M for NGHH radios, a sole-source contract for critical communications
Contract Overview
Contract Amount: $30,514,825 ($30.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2024-12-31
Contract Duration: 305 days
Daily Burn Rate: $100.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ANPRC-163 NEXT GENERATION HANDHELD(NGHH)
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ANPRC-163 NEXT GENERATION HANDHELD(NGHH) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. Delivery order under an existing contract, potentially indicating established relationship and performance. 4. Focus on advanced radio technology for special operations implies high-stakes application. 5. Contract duration of less than a year suggests a specific, near-term need. 6. No small business set-aside, raising questions about broader economic participation.
Value Assessment
Rating: questionable
The contract value of $30.5 million for a delivery order is substantial. However, without a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure provides cost certainty, but the absence of competition may have led to a higher price than could have been achieved through open bidding. Further analysis would require comparing this award to similar radio system procurements or understanding the specific technological advancements justifying the cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, Inc., was solicited. This significantly limits price discovery and competition. While sole-source awards can be justified for unique capabilities or urgent needs, the lack of multiple bidders means the government did not benefit from a competitive environment that typically drives down prices and encourages innovation among multiple suppliers.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, there is less assurance that the price reflects the best possible value.
Public Impact
Special Operations Forces personnel will benefit from advanced handheld radio communications. The contract delivers critical wireless communication equipment essential for mission success. The primary geographic impact is likely within operational theaters where SOCOM operates. The contract supports specialized manufacturing jobs within L3Harris Technologies. This procurement enhances the technological capabilities of U.S. Special Operations Command.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential value for taxpayers.
- Lack of small business participation may reduce economic opportunities for smaller firms.
- Short contract duration could indicate a stop-gap measure or a specific, limited need.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to an established contractor may ensure reliable delivery of critical equipment.
- Focus on advanced technology suggests a commitment to equipping forces with modern capabilities.
Sector Analysis
The defense communications sector is characterized by high technological sophistication and significant government investment. L3Harris Technologies is a major player in this market, providing a range of communication, electronic, and systems solutions. This contract for Next Generation Handheld (NGHH) radios fits within the broader landscape of military communications modernization, where advanced, secure, and interoperable systems are paramount. Spending in this area is driven by evolving threats and the need for superior battlefield awareness and command and control.
Small Business Impact
The contract was not competed and did not include a small business set-aside. This means that opportunities for small businesses to participate in this specific procurement were likely minimal. Without subcontracting requirements or a competitive process that encourages small business prime contractors, the direct economic impact on the small business ecosystem from this particular award is limited. Future contracts or modifications could potentially incorporate small business participation goals.
Oversight & Accountability
As a delivery order under an existing contract, oversight may be tied to the terms of the original award. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is moderate, as the award details are publicly available. Accountability rests with the U.S. Special Operations Command to ensure the delivered equipment meets specifications and operational requirements. Further oversight would depend on the specific reporting and inspection clauses within the parent contract.
Related Government Programs
- Tactical Radio Systems
- Special Operations Forces Equipment
- Military Communications Modernization
- Wireless Communication Manufacturing
Risk Flags
- Sole-source award limits competition.
- Potential for higher cost due to lack of competitive bidding.
- No small business participation noted.
Tags
defense, department-of-defense, u-s-special-operations-command, l3-harris-technologies, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, delivery-order, firm-fixed-price, sole-source, communications-equipment, special-operations-forces, new-york, next-generation-handheld
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to L3HARRIS TECHNOLOGIES, INC.. ANPRC-163 NEXT GENERATION HANDHELD(NGHH)
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 $30.5 million.
What is the period of performance?
Start: 2024-03-01. End: 2024-12-31.
What is the specific technological advancement or capability that justifies the sole-source award for the ANPRC-163 NGHH radio?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. For the ANPRC-163 NGHH radio, this could involve highly specialized features such as advanced encryption, specific interoperability with existing SOCOM systems, superior range or clarity in challenging environments, or a unique form factor required for particular operational roles. Without access to the specific justification documentation (e.g., a Justification and Approval document), it's difficult to pinpoint the exact technological differentiator. However, the 'Next Generation' designation implies significant upgrades over previous models, likely incorporating advancements in digital signal processing, network connectivity, or reduced size, weight, and power (SWaP).
How does the $30.5 million value compare to previous procurements of similar handheld radios by SOCOM or other military branches?
Comparing the $30.5 million value requires context regarding the quantity of radios procured, the specific capabilities included, and the timeframe. As a sole-source award, direct value-for-money comparison is challenging. However, if this represents a significant quantity of advanced radios, the price might be within expected ranges for specialized military hardware. For instance, if previous awards for similar, albeit less advanced, radios were in the tens of millions, this figure could be reasonable. Conversely, if previous competitive bids yielded substantially lower prices per unit, this sole-source award might warrant closer scrutiny. Benchmarking against publicly available data for similar tactical communication systems, considering factors like unit cost, software licenses, and support packages, would be necessary for a comprehensive assessment.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the ANPRC-163 NGHH radio?
The success of this contract, particularly for a sole-source award of critical communication equipment, would likely be evaluated based on several key performance indicators. Primary among these would be the reliability and performance of the radios in operational environments, measured by factors such as signal integrity, uptime, battery life, and resistance to environmental stressors (e.g., temperature, water, shock). Mission success rates directly attributable to improved communications could also be a KPI. For the contractor, delivery timeliness and adherence to specifications are crucial. Administratively, the government would track adherence to the firm-fixed-price terms and any potential cost overruns, although the latter is less likely with this contract type. User feedback from Special Operations Forces personnel regarding usability and effectiveness would also be a critical qualitative measure.
What is the track record of L3Harris Technologies, Inc. in delivering similar communication systems to the Department of Defense, particularly SOCOM?
L3Harris Technologies, Inc. (and its predecessor companies) has a long-standing and extensive track record of delivering complex communication systems, electronic warfare capabilities, and integrated mission solutions to the Department of Defense, including U.S. Special Operations Command. They are a significant defense contractor known for producing a wide array of radio systems, satellite communications, avionics, and other advanced technologies. Their history includes numerous large-scale contracts for tactical radios, secure communication devices, and network-centric warfare solutions. While specific performance details on individual contracts are often sensitive, L3Harris is generally recognized as a capable and experienced provider in this domain. Past performance is a critical factor considered in defense contracting, and their continued success in securing substantial awards suggests a generally positive track record.
Are there any known risks associated with the ANPRC-163 NGHH radio system itself, such as cybersecurity vulnerabilities or interoperability issues?
As with any advanced electronic communication system, the ANPRC-163 NGHH radio system carries potential risks, particularly concerning cybersecurity and interoperability. Cybersecurity is a paramount concern for military communications; therefore, the system likely incorporates robust encryption and security protocols. However, the evolving threat landscape means that vulnerabilities can emerge. Regular software updates and security patches are essential to mitigate these risks. Interoperability is another key consideration, especially within the complex ecosystem of SOCOM assets. Ensuring seamless communication with other platforms, legacy systems, and coalition forces requires careful design and testing. While the 'Next Generation' designation suggests improved capabilities, potential challenges in integrating with diverse systems or ensuring backward compatibility could exist. The sole-source nature of this award means that independent, third-party testing focused solely on these specific risks might be less extensive than in a competitive scenario.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
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: $30,514,825
Exercised Options: $30,514,825
Current Obligation: $30,514,825
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9240124D0001
IDV Type: IDC
Timeline
Start Date: 2024-03-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-05-21
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