L3Harris awarded $64.8M for NGHH radios, a sole-source contract with limited competition
Contract Overview
Contract Amount: $64,790,418 ($64.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-07
End Date: 2025-08-30
Contract Duration: 449 days
Daily Burn Rate: $144.3K/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 $64.8 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, raising questions about price competitiveness. 2. Limited competition may lead to higher costs for taxpayers. 3. Contract duration of 449 days suggests a need for timely delivery of critical equipment. 4. Focus on radio and wireless communications equipment highlights a specific technological niche. 5. The contract's value, while significant, needs benchmarking against similar sole-source awards. 6. Performance metrics and delivery timelines will be key indicators of value for money.
Value Assessment
Rating: questionable
This contract was awarded sole-source, making a direct comparison to competitively bid contracts difficult. Without competitive pricing, it is challenging to definitively assess if the $64.8 million represents excellent value. The fixed-price nature provides some cost certainty, but the lack of competition limits the ability to benchmark against market rates or similar procurements. Further analysis would require understanding the unique capabilities of the ANPRC-163 NGHH and any proprietary technology involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning that only one vendor, L3Harris Technologies, Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that price discovery through market forces was not utilized, potentially impacting the final cost to the government.
Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the best possible price for the required equipment.
Public Impact
Special Operations Command personnel will benefit from advanced handheld radio communication capabilities. The contract ensures the delivery of critical wireless communication equipment for operational readiness. The geographic impact is primarily within the operational theaters of U.S. Special Operations Command. Workforce implications are likely concentrated within L3Harris Technologies' manufacturing and engineering divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Lack of transparency in the procurement process due to sole-source justification.
- Potential for vendor lock-in if alternative solutions are not explored.
- Dependence on a single supplier for critical communication technology.
Positive Signals
- Award to an established defense contractor with existing capabilities.
- Firm fixed-price contract provides cost certainty for the government.
- Delivery order structure allows for phased acquisition and management.
- Focus on advanced communication technology supports mission requirements.
Sector Analysis
The defense communications market is a significant segment within the broader electronics manufacturing industry. Companies like L3Harris Technologies are key players, providing specialized equipment for military applications. This contract for Next Generation Handheld (NGHH) radios falls within the wireless communications equipment manufacturing sector. Benchmarking this spending would involve comparing it to other sole-source awards for similar advanced communication systems or to the overall R&D and procurement budgets for tactical communication gear within the Department of Defense.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating subcontracting opportunities for small businesses. The sole-source nature of the award further reduces the likelihood of small business participation through competitive subcontracting. This could limit the impact on the small business ecosystem within the defense communications sector for this specific procurement.
Oversight & Accountability
Oversight for this contract will primarily fall under the U.S. Special Operations Command's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency regarding the specific reasons for the sole-source designation and the pricing structure would be crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Tactical Radio Systems
- Special Operations Forces Equipment
- Wireless Communication Devices
- Department of Defense Procurement
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Lack of transparency in procurement justification.
- Potential for vendor lock-in.
- Dependence on a single supplier for critical technology.
Tags
defense, department-of-defense, u-s-special-operations-command, l3harris-technologies, sole-source, firm-fixed-price, delivery-order, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, new-york, communications-equipment, tactical-radio
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.8 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 $64.8 million.
What is the period of performance?
Start: 2024-06-07. End: 2025-08-30.
What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies, Inc.?
The provided data indicates the contract was awarded as 'NOT COMPETED,' which is synonymous with a sole-source justification. Typically, such justifications are made when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling circumstances, or a lack of adequate competition. For the ANPRC-163 NGHH, the justification likely stems from specialized technology or existing integration with U.S. Special Operations Command (SOCOM) systems that only L3Harris can provide. A detailed review of SOCOM's contract file would reveal the specific rationale, such as unique technical specifications, essential interoperability requirements, or the limited availability of alternative solutions in the market.
How does the unit cost of the ANPRC-163 NGHH compare to similar handheld radios procured by other government agencies or allies?
Direct unit cost comparison is challenging without knowing the exact quantity of radios procured under this $64.8 million contract and the specific configuration. However, given the sole-source nature, it is probable that the unit cost is higher than what might be achieved through a competitive bidding process. To benchmark, one would need to identify comparable advanced tactical handheld radios procured competitively by agencies like the Army, Navy, or allied nations. Factors such as frequency range, encryption capabilities, power output, ruggedization, and battery life significantly influence cost. If L3Harris's NGHH offers superior or unique features, a higher price point might be justifiable, but without competitive data, assessing value remains difficult.
What are the key performance indicators (KPIs) and delivery milestones associated with this contract?
The provided data specifies a contract duration from June 7, 2024, to August 30, 2025 (449 days). While specific Key Performance Indicators (KPIs) are not detailed, typical performance expectations for such a contract would include adherence to delivery schedules, meeting technical specifications for radio performance (e.g., range, clarity, battery life, encryption strength), reliability, and successful integration into existing communication networks. Delivery milestones would likely be phased, with initial deliveries of a certain quantity followed by subsequent deliveries based on operational needs. The firm fixed-price nature suggests that meeting these technical and delivery requirements is paramount for L3Harris to realize its profit margin.
What is the historical spending pattern for similar handheld radio systems by U.S. Special Operations Command?
Historical spending data for similar systems by U.S. Special Operations Command (SOCOM) would provide crucial context for evaluating the $64.8 million award. Analyzing past procurements of tactical handheld radios, especially those designated for special operations, would reveal trends in contract values, quantities, and procurement methods (competitive vs. sole-source). If SOCOM has consistently awarded sole-source contracts for these types of radios to L3Harris or other vendors at similar price points, it might indicate a stable, albeit less competitive, market for these specialized devices. Conversely, a significant increase in value or a shift towards sole-source awards could signal changing market dynamics or evolving technological requirements driving up costs.
What are the potential risks associated with relying on a single vendor for critical communication equipment?
Relying on a single vendor, as is the case with this sole-source contract, introduces several risks. Firstly, there's a risk of price escalation in future procurements, as the vendor faces no competitive pressure. Secondly, supply chain disruptions affecting the sole vendor can halt production and delivery, impacting operational readiness. Thirdly, technological stagnation is a risk; the vendor might have less incentive to innovate rapidly if they are guaranteed business. Lastly, there's a dependency risk – if the vendor experiences financial difficulties or decides to exit the market, SOCOM could face significant challenges in finding and transitioning to an alternative supplier for critical communication equipment.
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: $64,790,418
Exercised Options: $64,790,418
Current Obligation: $64,790,418
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9240124D0001
IDV Type: IDC
Timeline
Start Date: 2024-06-07
Current End Date: 2025-08-30
Potential End Date: 2025-08-30 00:00:00
Last Modified: 2024-07-16
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