L3Harris Technologies awarded $50.1M contract for wireless communications equipment, highlighting defense sector needs

Contract Overview

Contract Amount: $50,180,285 ($50.2M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-26

End Date: 2023-12-29

Contract Duration: 702 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MCHH

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $50.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MCHH Key points: 1. Contract value of $50.1M represents a significant investment in critical defense communications infrastructure. 2. Awarded to L3Harris Technologies, a major defense contractor with a substantial existing footprint. 3. The contract duration of 702 days suggests a need for sustained and reliable equipment. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The specific North American Industry Classification System (NAICS) code 334220 points to specialized manufacturing capabilities. 6. Awarded by the Department of the Navy, indicating a focus on naval operational requirements.

Value Assessment

Rating: good

The contract value of $50.1 million for wireless communications equipment appears reasonable given the duration and the specialized nature of defense technology. Benchmarking against similar contracts for advanced communication systems would provide a more precise value assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award to a large, established defense contractor like L3Harris Technologies implies a certain level of expected performance and quality, though it also warrants scrutiny for potential cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Navy's decision to use full and open competition suggests confidence in the market's ability to meet their requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive bids, potentially driving down prices and increasing the value received for public funds.

Public Impact

Naval forces will benefit from enhanced wireless communication capabilities, improving operational effectiveness and command and control. The contract supports the manufacturing and supply of specialized radio and television broadcasting and wireless communications equipment. The geographic impact is primarily within New York (st) where L3Harris Technologies is located, potentially supporting local jobs and the regional economy. This contract likely supports a skilled workforce in the advanced manufacturing and telecommunications sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial pricing does not accurately reflect the full scope of work.
Dependence on a single large contractor could limit future flexibility or innovation from smaller players.
Ensuring the technology remains current and effective throughout the contract duration requires ongoing monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
L3Harris Technologies is an established defense contractor with a track record in similar technologies.
The contract addresses a critical need for modern defense communications infrastructure.

Sector Analysis

The defense sector's demand for advanced wireless communication equipment is substantial, driven by the need for secure, reliable, and high-bandwidth systems. This contract falls within the broader telecommunications manufacturing industry, which is characterized by rapid technological advancements and significant R&D investment. Comparable spending benchmarks in this area are difficult to ascertain without specific technical details, but the $50.1 million award is a significant sum, reflecting the specialized and critical nature of the equipment procured for naval operations.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large prime contractor, and there is no indication of a small business set-aside. This suggests that small businesses are unlikely to be direct recipients of this prime contract. However, L3Harris may engage small businesses as subcontractors, contributing to the small business ecosystem indirectly. Further analysis would be needed to determine the extent of small business subcontracting opportunities associated with this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified equipment. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Communication Systems
Defense Telecommunications Infrastructure
Wireless Equipment Procurement
Department of Defense Contracts
Advanced Manufacturing Contracts

Risk Flags

Potential for technological obsolescence
Supply chain vulnerability
Integration complexity with existing systems
Cybersecurity risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.2 million to L3HARRIS TECHNOLOGIES, INC.. MCHH

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 $50.2 million.

What is the period of performance?

Start: 2022-01-26. End: 2023-12-29.

What is L3Harris Technologies' track record with similar wireless communication equipment contracts for the Department of Defense?

L3Harris Technologies has a significant and established track record in providing advanced communication systems and electronic warfare solutions to the Department of Defense. They are a major defense contractor with extensive experience in developing, manufacturing, and integrating complex electronic systems, including radio, satellite, and network-centric communication equipment. Their history includes numerous contracts for various branches of the military, often involving high-value, technologically sophisticated products. While specific details of past performance on identical wireless communication equipment contracts are proprietary, their overall profile suggests a strong capability to meet the requirements of this $50.1 million award. Government contract databases and performance reports, where available, would offer more granular insights into their past delivery, quality, and adherence to schedule on similar projects.

How does the $50.1 million award compare to other recent procurements of similar wireless communication equipment by the Navy?

Comparing the $50.1 million award to other recent procurements requires access to detailed specifications and quantities of the wireless communication equipment. However, as a general benchmark, this value is substantial and indicative of a significant procurement, likely involving advanced or specialized systems rather than off-the-shelf components. The Department of the Navy procures a wide range of communication equipment, from tactical radios to shipboard systems. Awards in the tens of millions are common for major system upgrades or new platform integration. To provide a precise comparison, one would need to identify contracts with similar NAICS codes (334220) and equipment types awarded within a similar timeframe. The firm fixed-price nature of this contract also suggests a defined scope, which aids in value assessment compared to cost-plus contracts.

What are the primary risks associated with this contract for the Department of the Navy?

The primary risks associated with this contract for the Department of the Navy include potential technological obsolescence if the equipment's lifecycle is shorter than anticipated, supply chain disruptions affecting timely delivery, and performance issues if the equipment does not meet stringent operational requirements. Given that L3Harris Technologies is a large, established contractor, the risk of contractor default is relatively low, but ensuring competitive pricing and avoiding cost creep within the fixed-price structure remains a consideration. There's also a risk related to integration with existing naval communication networks, ensuring interoperability and cybersecurity. The long duration of the contract (702 days) increases the exposure to these risks over time.

What is the expected program effectiveness and impact of this wireless communication equipment on naval operations?

The expected program effectiveness of this wireless communication equipment is to enhance the Department of the Navy's operational capabilities through improved command, control, and situational awareness. Modern wireless communication systems are critical for real-time data sharing, secure voice and video transmission, and maintaining connectivity across diverse operational environments, from shore-based facilities to deployed vessels. The impact is likely to be a more agile, responsive, and secure naval force, better equipped to handle complex missions. This could translate to improved coordination during joint operations, faster decision-making cycles, and enhanced resilience against electronic warfare threats. The specific impact will depend on the exact capabilities of the equipment procured.

How does historical spending on wireless communication equipment by the Department of the Navy compare to this award?

Historical spending by the Department of the Navy on wireless communication equipment is substantial, reflecting the critical role of robust communication systems in naval operations. The Navy consistently invests in upgrading and maintaining its communication infrastructure, with annual spending often reaching hundreds of millions, if not billions, across various categories of communication hardware and services. This $50.1 million award represents a significant, but likely not unprecedented, single procurement within that broader spending pattern. To provide a precise historical comparison, one would need to analyze aggregated spending data for NAICS code 334220 and related communication equipment categories over several fiscal years. This specific award fits within the ongoing trend of modernizing naval communication capabilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785421R2090

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: $50,180,285

Exercised Options: $50,180,285

Current Obligation: $50,180,285

Actual Outlays: $202,094

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $193,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785422D2090

IDV Type: IDC

Timeline