DoD's $1.99M L3Harris contract for radio comms equipment faces scrutiny over sole-source award

Contract Overview

Contract Amount: $19,937,500 ($19.9M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-02

End Date: 2026-02-02

Contract Duration: 31 days

Daily Burn Rate: $643.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: L3HARRIS_PRC-163 CODE INFIL/EXFIL

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: L3HARRIS_PRC-163 CODE INFIL/EXFIL Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Short 31-day performance period suggests a specific, immediate need. 3. Focus on 'infil/exfil' implies tactical or special operations communication. 4. No small business set-aside indicates potential missed opportunities for smaller firms. 5. The contract value is relatively small, but the procurement method warrants attention. 6. Industry code suggests a focus on wireless communications equipment manufacturing.

Value Assessment

Rating: questionable

The contract value of $1.99 million for a 31-day period is difficult to benchmark without specific technical details of the 'CODE INFIL/EXFIL' radio equipment. Given the sole-source award, there's no direct comparison to assess pricing competitiveness. The benchmark for similar tactical communication equipment can vary widely based on features and technology. Without competitive bids, it's challenging to ascertain if the price represents fair market value or if taxpayers received the best possible deal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning L3Harris Technologies, Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently reduce price competition and may lead to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding environment. This can result in paying a premium for goods or services.

Public Impact

Special Operations Forces likely benefit from enhanced communication capabilities for infiltration and exfiltration missions. The contract delivers specialized radio equipment crucial for secure and reliable communication in sensitive operations. The geographic impact is primarily within the operational theaters of U.S. Special Operations Command. Workforce implications are likely concentrated within L3Harris Technologies, Inc. for manufacturing and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the justification for sole-source procurement.
Short performance period may indicate rushed acquisition or limited scope.
No small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Award to a known defense contractor (L3Harris) suggests a potentially reliable supplier.
Specific focus on 'infil/exfil' indicates a tailored solution for critical operational needs.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The defense communications sector is characterized by high technological sophistication and significant government investment. Contracts like this, for specialized radio equipment, are common within the broader defense electronics market. L3Harris Technologies is a major player in this space, providing a range of communication, sensing, and electronic systems. Benchmarking this specific contract is difficult due to its specialized nature and sole-source award, but it fits within the typical procurement patterns for advanced tactical communication gear.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the provided data. The award to a large prime contractor like L3Harris suggests that the primary focus was on leveraging existing capabilities rather than fostering small business participation. This could represent a missed opportunity to engage smaller, potentially more agile, businesses in the defense supply chain.

Oversight & Accountability

Oversight for this contract would fall under the U.S. Special Operations Command (SOCOM) and potentially the Department of Defense's Inspector General, especially if concerns arise regarding the sole-source justification or performance. Transparency is limited due to the non-competitive nature of the award. Accountability will be measured by the successful delivery of the specified radio equipment within the short timeframe and adherence to the firm-fixed-price terms.

Related Government Programs

Tactical Communications Systems
Special Operations Equipment Procurement
Radio and Wireless Communications Manufacturing
Department of Defense Procurement

Risk Flags

Sole-source award without clear justification
Limited competition may lead to higher costs
Short performance period raises questions about scope or urgency
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to L3HARRIS TECHNOLOGIES, INC.. L3HARRIS_PRC-163 CODE INFIL/EXFIL

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 $19.9 million.

What is the period of performance?

Start: 2026-01-02. End: 2026-02-02.

What specific capabilities does the L3HARRIS PRC-163 CODE INFIL/EXFIL radio system offer, and why was it deemed necessary for sole-source procurement?

The L3HARRIS PRC-163 CODE INFIL/EXFIL radio system is likely a specialized, secure communication device designed for covert or sensitive operations, particularly for insertion (infil) and extraction (exfil) phases. Its 'CODE' designation suggests advanced encryption or secure voice capabilities. The necessity for sole-source procurement would typically stem from unique technological advantages, proprietary features, existing system integration, or urgent operational requirements that only L3Harris could meet within the required timeframe. Without a detailed justification document, the exact reasons remain speculative, but these factors are common drivers for such awards in the defense sector.

How does the $1.99 million contract value compare to similar tactical radio systems procured by the DoD or SOCOM?

Direct comparison of the $1.99 million contract value for the L3HARRIS PRC-163 CODE INFIL/EXFIL system is challenging due to its specialized nature and sole-source award. However, tactical radio systems can range from tens of thousands to hundreds of thousands of dollars per unit, depending on features like encryption, range, bandwidth, and ruggedization. For a batch of radios intended for a specific operational need over a short period, $1.99 million could represent a reasonable cost if the system offers advanced, unique capabilities. Without competitive bids, it's difficult to establish a precise market benchmark, but the value appears within the plausible range for specialized military communication hardware.

What are the potential risks associated with awarding a contract of this nature on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Taxpayers may end up paying more than necessary for the equipment. Another risk is the potential for vendor lock-in, where the government becomes dependent on a single supplier, limiting future flexibility and potentially hindering the adoption of newer, more cost-effective technologies. Furthermore, without competition, there's a reduced incentive for the contractor to ensure maximum efficiency and value, although performance standards and contract terms aim to mitigate this.

What is the typical track record of L3Harris Technologies, Inc. in fulfilling DoD contracts, particularly for communication systems?

L3Harris Technologies, Inc. has a long and extensive track record as a major defense contractor, consistently awarded significant contracts across various domains, including communications, electronic warfare, and space systems. They are known for producing a wide array of sophisticated military hardware. Historically, L3Harris has demonstrated the capability to deliver complex systems to the DoD, including tactical radios and integrated communication solutions. While specific performance metrics for every contract are not publicly detailed, their sustained presence and substantial contract awards suggest a generally reliable performance history in meeting the demanding requirements of military clients.

How does this contract align with broader trends in defense spending on communication and electronic warfare systems?

This contract aligns with the broader trend of increasing defense spending on advanced communication systems, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) capabilities. As military operations become more complex and technologically driven, the need for secure, reliable, and high-bandwidth communication solutions for special operations and tactical units is paramount. The focus on specialized equipment for 'infil/exfil' reflects the military's emphasis on enabling mission success in high-risk environments through superior technology. This spending reflects a strategic investment in maintaining information superiority and operational effectiveness.

What oversight mechanisms are in place to ensure the effective use of funds and performance for this specific sole-source contract?

Oversight for this contract is primarily managed by the U.S. Special Operations Command (SOCOM), the contracting agency. They are responsible for monitoring contractor performance, ensuring adherence to contract terms, and verifying the delivery of the specified radio equipment. The firm-fixed-price nature of the contract provides some cost certainty. Additionally, the Department of Defense's Inspector General (IG) has jurisdiction to investigate potential fraud, waste, or abuse, particularly concerning sole-source awards where justification and pricing are scrutinized. Regular reporting requirements and potential site visits by government representatives would also form part of the oversight process.

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: $19,937,500

Exercised Options: $19,937,500

Current Obligation: $19,937,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240124D0001

IDV Type: IDC

Timeline