DoD Awards $40M for Software Updates to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $40,000,000 ($40.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2031-07-18
Contract Duration: 2,576 days
Daily Burn Rate: $15.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE UPDATES
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $40.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: SOFTWARE UPDATES Key points: 1. Significant contract value of $40 million for essential software updates. 2. Sole-source award to L3Harris Technologies, Inc. raises competition concerns. 3. Long contract duration of over 7 years may impact cost-effectiveness. 4. Focus on wireless communications equipment manufacturing suggests specialized needs.
Value Assessment
Rating: questionable
The $40 million award over 7 years for software updates lacks a clear benchmark for comparison. Without competitive bidding, it's difficult to assess if the pricing is optimal for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for a $40 million contract potentially means taxpayers are not receiving the best possible value.
Public Impact
Special Operations Command relies on these updates for critical communication systems. The long-term nature of the contract ensures continuity of essential services. Potential for vendor lock-in due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Essential software updates
- Supports Special Operations Command
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. The $40 million award is substantial for software updates within this specialized area, particularly for defense applications.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract's duration.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may not reflect current market value.
- Potential for cost overruns without competitive pressure.
- Lack of small business participation.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.0 million to L3HARRIS TECHNOLOGIES, INC.. SOFTWARE UPDATES
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 $40.0 million.
What is the period of performance?
Start: 2024-06-28. End: 2031-07-18.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. Without further details, it's difficult to ascertain the specific rationale, but it's crucial for the agency to document and defend this decision to ensure it aligns with procurement regulations and serves the government's best interest.
What are the risks associated with a sole-source contract of this magnitude and duration?
The primary risks include inflated pricing due to lack of competition, potential for reduced innovation as the vendor faces no competitive pressure, and vendor lock-in. Over a seven-year period, the government may miss out on more cost-effective solutions or technological advancements that emerge from a competitive market.
How will the effectiveness of these software updates be measured and ensured?
Effectiveness is typically measured through performance metrics defined in the contract, such as system uptime, successful deployment of updates, and resolution of identified bugs or vulnerabilities. Regular reviews and acceptance testing by the Department of Defense will be critical to ensure the updates meet operational requirements and enhance system functionality as intended.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL
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: $80,000,000
Exercised Options: $80,000,000
Current Obligation: $40,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9240124D0001
IDV Type: IDC
Timeline
Start Date: 2024-06-28
Current End Date: 2031-07-18
Potential End Date: 2031-07-18 00:00:00
Last Modified: 2025-12-09
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