DoD awards $944K for radio systems to L3Harris Technologies, Inc., bypassing competitive bidding

Contract Overview

Contract Amount: $9,444,480 ($9.4M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-28

End Date: 2026-07-13

Contract Duration: 350 days

Daily Burn Rate: $27.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NGHH RADIO AN/PRC-163 SYSTEM, ACCESSORIES.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to L3HARRIS TECHNOLOGIES, INC. for work described as: NGHH RADIO AN/PRC-163 SYSTEM, ACCESSORIES. Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential cost savings. 2. The contract value is relatively small, suggesting a focused procurement for specialized equipment. 3. Delivery order for radio and wireless communications equipment indicates a need for immediate or near-term operational capability. 4. The duration of the contract is approximately one year, implying a short-term requirement or a phased approach. 5. The award to L3Harris Technologies, Inc. suggests a reliance on established suppliers for critical communication systems. 6. Lack of competition may limit opportunities for other manufacturers to supply similar equipment to the DoD.

Value Assessment

Rating: questionable

The contract value of $944,448 is modest, making direct comparison to larger systems difficult. However, the absence of competition means there is no benchmark to assess if the price is optimal. Without competitive bids, it's challenging to determine if L3Harris Technologies, Inc. offered the best value for the NGHH RADIO AN/PRC-163 SYSTEM and accessories. Further analysis would require understanding the specific technical requirements and market rates for comparable specialized radio equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided in the data. Sole-source procurements can occur for various reasons, including unique capabilities, urgent needs, or when only one vendor can meet the requirements. The lack of competition means that the Department of Defense did not receive multiple offers, which typically drives down prices and encourages innovation.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of multiple bids means the government could potentially be paying a premium for the radio systems.

Public Impact

U.S. Special Operations Command personnel will benefit from the acquisition of advanced radio communication systems. The contract supports the delivery of the NGHH RADIO AN/PRC-163 SYSTEM and associated accessories. The geographic impact is primarily within New York, where the contractor is located, but the equipment will likely be deployed globally by SOCOM. The contract may have implications for the specialized workforce within L3Harris Technologies, Inc. involved in manufacturing and supporting these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits price competition and potential cost savings for taxpayers.
  • Lack of transparency regarding the justification for a sole-source procurement.
  • Potential for over-reliance on a single supplier for critical communication equipment.

Positive Signals

  • Award to an established defense contractor with likely expertise in radio systems.
  • Procurement of specialized equipment to meet specific operational needs of U.S. Special Operations Command.
  • Contract ensures timely delivery of essential communication technology.

Sector Analysis

The defense communications sector is characterized by high technological sophistication and significant government investment. Companies like L3Harris Technologies, Inc. are key players, often holding specialized expertise and existing relationships with military branches. This contract, though relatively small in dollar value, fits within the broader landscape of defense spending on tactical communication systems, which are critical for modern military operations. Benchmarks for similar specialized radio systems can vary widely based on features and capabilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to L3Harris Technologies, Inc., a large defense contractor, suggests that small business participation is not a primary focus of this specific procurement. This could mean missed opportunities for small businesses to contribute to the supply chain for these specialized radio systems.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contracting and procurement regulations. The U.S. Special Operations Command is responsible for ensuring the contractor meets the terms and conditions of the delivery order. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • Tactical Radio Systems
  • Special Operations Forces Equipment
  • Department of Defense Communications Procurement
  • Wireless Communications Equipment

Risk Flags

  • Sole-source award without clear justification.
  • Potential for non-competitive pricing.
  • Limited transparency in procurement process.

Tags

defense, department-of-defense, u.s.-special-operations-command, l3harris-technologies-inc, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, not-competed, delivery-order, firm-fixed-price, new-york, communications-equipment, tactical-radio

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to L3HARRIS TECHNOLOGIES, INC.. NGHH RADIO AN/PRC-163 SYSTEM, ACCESSORIES.

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 $9.4 million.

What is the period of performance?

Start: 2025-07-28. End: 2026-07-13.

What is the specific technical capability of the NGHH RADIO AN/PRC-163 SYSTEM?

The NGHH RADIO AN/PRC-163 SYSTEM is a modern tactical radio designed for use by special operations forces. While specific technical details are often classified or proprietary, such systems typically offer advanced features like multi-band frequency hopping, secure voice and data transmission, and interoperability with other battlefield communication networks. They are engineered to be rugged, reliable, and provide clear communication in challenging electromagnetic environments. The 'NGHH' designation likely refers to a specific program or variant within the AN/PRC-163 family, indicating a tailored solution for particular operational requirements of the U.S. Special Operations Command.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this decision is not detailed. Common reasons for sole-source awards in defense contracting include the existence of unique capabilities possessed by only one vendor, urgent and compelling needs where competition is impractical, or if the procurement is for follow-on work to a previously competed contract where only the original contractor can provide the necessary supplies or services. Without further information from the awarding agency (Department of Defense, U.S. Special Operations Command), the precise rationale remains unknown.

How does the contract value compare to similar procurements for tactical radio systems?

The contract value of $944,448 is relatively modest for major defense procurements. However, comparing it directly to 'similar' procurements is challenging without knowing the exact specifications and quantities of the NGHH RADIO AN/PRC-163 SYSTEM and accessories being acquired. Tactical radio systems can range from thousands to hundreds of thousands of dollars per unit, depending on their technological sophistication, features (e.g., encryption, bandwidth, range), and intended operational environment. Given this is a sole-source award for specialized equipment, a direct price-to-price comparison with competitively bid systems is not feasible for value assessment.

What is the track record of L3Harris Technologies, Inc. in supplying radio systems to the DoD?

L3Harris Technologies, Inc. is a major defense contractor with a significant history of supplying a wide array of communication systems, including tactical radios, to the Department of Defense and other government agencies. They are known for their expertise in areas such as airborne and ground-based communications, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) systems. Their track record generally includes delivering complex and technologically advanced solutions. Awards like this one, even if sole-source, often stem from existing relationships and demonstrated past performance in meeting stringent military requirements.

What are the potential risks associated with a sole-source award for communication equipment?

The primary risk associated with a sole-source award for communication equipment is the lack of competitive pressure, which can lead to higher prices than might be achieved through a competitive process. This can result in less value for taxpayer money. Additionally, sole-source awards can reduce market transparency and potentially stifle innovation by limiting opportunities for other capable vendors to enter the market or offer alternative solutions. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially facing challenges if that supplier's prices increase significantly or if they face production issues.

How does this contract contribute to the operational readiness of U.S. Special Operations Command?

This contract directly contributes to the operational readiness of U.S. Special Operations Command (SOCOM) by providing them with advanced communication systems. Reliable and secure communication is paramount for SOCOM's missions, which often involve operating in complex, high-risk environments where coordination and information sharing are critical. The NGHH RADIO AN/PRC-163 SYSTEM, likely a state-of-the-art piece of equipment, ensures that SOCOM personnel can maintain command and control, share intelligence, and execute their operations effectively and safely. This procurement addresses a specific need for specialized radio technology to maintain their technological edge.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio 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: $9,444,480

Exercised Options: $9,444,480

Current Obligation: $9,444,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240124D0001

IDV Type: IDC

Timeline

Start Date: 2025-07-28

Current End Date: 2026-07-13

Potential End Date: 2026-07-13 00:00:00

Last Modified: 2026-01-13

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