DoD awards $33.3M for remote control systems, with L3Harris Technologies securing the sole-source contract

Contract Overview

Contract Amount: $33,319,939 ($33.3M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-24

End Date: 2024-09-30

Contract Duration: 829 days

Daily Burn Rate: $40.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RF-9800R REMOTE CONTROL SYSTEM

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: RF-9800R REMOTE CONTROL SYSTEM Key points: 1. The contract value of $33.3 million for a remote control system appears to be a significant investment. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The duration of 829 days suggests a substantial project with ongoing support needs. 4. The absence of small business set-asides or subcontracting plans warrants further investigation. 5. The contract's focus on wireless communications equipment manufacturing places it within a specialized sector. 6. The firm-fixed-price structure shifts cost risk to the contractor, but the sole-source nature limits negotiation leverage.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.3 million contract for a remote control system is challenging without more detailed specifications and comparable contract data. However, the sole-source nature of the award, coupled with a firm-fixed-price contract, suggests that the government may not have achieved the most competitive pricing. Without competition, it's difficult to ascertain if the price reflects fair market value or if it includes a premium due to the lack of alternative bidders. Further analysis would require understanding the system's complexity and the incumbent contractor's pricing history.

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 approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts. The lack of competition here means taxpayers did not benefit from the cost savings that can arise from a competitive environment.

Taxpayer Impact: The absence of competition means taxpayers may have paid a higher price than if multiple vendors had bid. This also limits opportunities for new or smaller businesses to enter the market for this type of system.

Public Impact

The Department of the Navy is the primary beneficiary, receiving the remote control system. The contract supports the acquisition of wireless communications equipment, likely for operational or command and control purposes. The geographic impact is centered in New York, where L3Harris Technologies, Inc. is located, but the system's use could be global. The contract may have implications for the specialized workforce within the wireless communications equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
No indication of small business participation or subcontracting opportunities.
Firm-fixed-price contract with a sole-source award could mask inefficiencies or excessive profit margins.

Positive Signals

L3Harris Technologies, Inc. is a known entity in defense contracting, suggesting potential for reliable delivery.
Firm-fixed-price contract provides cost certainty for the government once awarded.
The contract duration indicates a long-term need and commitment to the system.

Sector Analysis

The contract falls under the North American Industry Classification System (NAICS) code 334220, which covers Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. This sector is critical for defense and national security, providing essential communication tools. Spending in this area is often characterized by high technological requirements and specialized manufacturing capabilities. Comparable spending benchmarks would typically involve other contracts for advanced communication systems, radar, or electronic warfare equipment, which often involve significant R&D and high unit costs.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there any explicit mention of subcontracting plans for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. This could mean that the prime contractor will perform all work, or if subcontracting occurs, it may not be prioritized for small businesses. This lack of focus on small business participation could impact the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and procurement regulations, likely managed by the Department of the Navy. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified goods within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, as the justification for not competing the contract may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Command and Control Systems
Naval Communication Systems
Wireless Communication Equipment Procurement
Defense Electronics Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to L3HARRIS TECHNOLOGIES, INC.. RF-9800R REMOTE CONTROL SYSTEM

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2022-06-24. End: 2024-09-30.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies, Inc.?

Sole-source contracts are typically awarded when only one responsible source can provide the required supplies or services. For this contract, the justification would likely stem from unique technical capabilities, proprietary technology, or a lack of adequate competition within the required timeframe. The Department of the Navy would have had to document this justification according to Federal Acquisition Regulation (FAR) Part 6.3. Without access to that specific documentation, it's impossible to definitively state the reason. However, common justifications include national security requirements, essential system integration, or the unavailability of alternative solutions that meet stringent performance specifications. This lack of competition means taxpayers did not benefit from potential cost savings that a competitive bidding process could have yielded.

How does the $33.3 million contract value compare to similar remote control systems procured by the DoD or other federal agencies?

Direct comparison of the $33.3 million contract value for this specific remote control system is difficult without detailed technical specifications and scope of work. However, the amount suggests a complex or high-volume requirement. Federal procurement data for similar advanced communication or control systems can range widely, from a few million to tens or hundreds of millions of dollars, depending on technological sophistication, quantity, and integration needs. Given the sole-source nature, it's plausible that the price may be higher than if it had been competitively bid. Benchmarking against other sole-source awards for specialized defense electronics could provide a more relevant, albeit still limited, comparison point.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract and the performance of L3Harris Technologies, Inc.?

The success of this contract would typically be measured against the terms outlined in the contract itself. Key performance indicators (KPIs) would likely include on-time delivery of the remote control systems, adherence to technical specifications and quality standards, and potentially system reliability and performance in operational environments. For a firm-fixed-price contract, meeting these requirements within the agreed budget is paramount. The Department of the Navy would have mechanisms for performance evaluation, such as contractor performance assessment reporting (CPARs), which track a contractor's past performance. However, specific KPIs are usually not publicly disclosed for individual contracts.

What is the historical spending pattern for remote control systems or similar wireless communication equipment by the Department of the Navy?

Analyzing historical spending patterns for remote control systems or similar wireless communication equipment by the Department of the Navy would require access to comprehensive federal procurement databases. Such analysis would reveal trends in contract awards, average contract values, dominant contractors, and the prevalence of competitive versus sole-source procurements in this category. For instance, one might observe an increasing trend in spending due to technological advancements or a shift towards specific types of wireless technologies. Understanding this history helps contextualize the current $33.3 million award, indicating whether it represents a typical investment or an outlier. Without specific historical data, it's difficult to provide precise figures or trends.

Are there any identified risks associated with L3Harris Technologies, Inc. as a contractor for this type of specialized equipment?

L3Harris Technologies, Inc. is a major defense contractor with extensive experience in various defense systems, including communications and electronics. Generally, large, established contractors like L3Harris are considered lower risk in terms of technical capability and delivery capacity. However, risks can still exist, such as potential cost overruns (though mitigated by FFP), schedule delays, or quality issues, although these are less common for experienced prime contractors. Specific risks related to this contract might include the complexity of integrating the remote control system with existing naval platforms, cybersecurity vulnerabilities, or the long-term sustainment and obsolescence management of the equipment. A review of past performance reports (CPARs) would offer more insight into any specific performance concerns.

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

Solicitation ID: M6785419R2001

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: $33,319,939

Exercised Options: $33,319,939

Current Obligation: $33,319,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785420D2029

IDV Type: IDC

Timeline