DoD awards $57.5M contract for wireless communications equipment to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $57,471,685 ($57.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-26
End Date: 2024-06-01
Contract Duration: 857 days
Daily Burn Rate: $67.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $57.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MCHH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. L3Harris Technologies, Inc. is a significant player in the defense and aerospace sector. 3. The contract duration of 857 days indicates a medium-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The North American Industry Classification System (NAICS) code 334220 points to manufacturing of radio and television broadcasting and wireless communications equipment.
Value Assessment
Rating: good
The contract value of $57.5 million for wireless communications equipment appears reasonable given the duration and the nature of the goods. Benchmarking against similar contracts for specialized defense communication systems is challenging without more specific details on the equipment. However, L3Harris is a known entity in this space, suggesting potential for competitive pricing due to their established market position and manufacturing capabilities. The firm fixed-price structure provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Navy likely issued a solicitation that allowed for a wide range of qualified companies to compete for this requirement.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for obtaining the best value through a robust bidding process, driving down costs and encouraging efficiency.
Public Impact
The Department of Defense, specifically the Department of the Navy, is the primary beneficiary, receiving essential wireless communications equipment. This contract supports the operational readiness and communication capabilities of naval forces. The geographic impact is primarily within New York, where L3Harris Technologies, Inc. is located, though the equipment's deployment could be global. The contract likely supports jobs within the manufacturing and technology sectors at L3Harris and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for all potential manufacturing or supply chain disruptions.
- Dependence on a single large contractor for critical communication equipment could pose a supply chain risk.
- Ensuring the delivered equipment meets all specified technical and performance requirements will be crucial.
Positive Signals
- Award to an established defense contractor with a proven track record in communications technology.
- Firm fixed-price contract structure provides cost predictability for the government.
- Competition through full and open bidding suggests a potentially efficient procurement process.
Sector Analysis
The wireless communications equipment manufacturing sector is a critical component of the broader defense industrial base. Companies in this space develop and produce a wide range of technologies, from tactical radios to advanced satellite communication systems. Spending in this sector is often driven by modernization efforts and the need for secure, reliable communication networks. L3Harris Technologies, Inc. is a major defense contractor with significant expertise in this area, competing with other large aerospace and defense firms.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. As a large prime contract awarded to a major corporation, the primary focus is on the prime contractor's capabilities. However, L3Harris may engage small businesses within its supply chain for components or specialized services, but this is not explicitly detailed.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm fixed-price nature of the contract shifts some risk to the contractor, but the government retains responsibility for ensuring delivery of goods that meet specifications. Transparency is facilitated by the contract award notice, and the Inspector General's office for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.
Related Government Programs
- Department of Defense Communications Systems
- Naval Communications Equipment Procurement
- Wireless Technology Manufacturing Contracts
- Defense Industrial Base Suppliers
Risk Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Risk of technological obsolescence in rapidly evolving communications field.
- Dependence on a single large contractor for critical systems.
Tags
defense, department-of-defense, department-of-the-navy, wireless-communications-equipment, manufacturing, l3harris-technologies, firm-fixed-price, full-and-open-competition, delivery-order, new-york, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.5 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 $57.5 million.
What is the period of performance?
Start: 2022-01-26. End: 2024-06-01.
What is the specific type of wireless communication equipment being procured under this contract?
The provided data indicates the contract falls under NAICS code 334220, which covers 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' While the exact specifications are not detailed, this suggests the procurement is for equipment related to radio transmission, reception, and wireless networking. Given the Department of the Navy as the agency, it is likely specialized military-grade communication devices, potentially including tactical radios, secure communication modules, or components for larger communication systems designed for naval operations. Further details would be found in the contract's statement of work.
How does the $57.5 million award compare to L3Harris Technologies' typical contract values in this sector?
L3Harris Technologies, Inc. is a large defense contractor with a diverse portfolio. A $57.5 million contract is a significant award but falls within the typical range for major system components or specialized equipment procurements for a company of its size. For context, L3Harris consistently secures contracts in the hundreds of millions and billions of dollars across various defense and aerospace domains, including communications, electronic warfare, and space systems. This specific award represents a focused investment in wireless communications equipment, aligning with their established capabilities and market presence in the defense sector.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
Specific KPIs for this contract are not detailed in the provided summary. However, for a contract involving the manufacturing and delivery of wireless communications equipment, typical performance metrics would include on-time delivery, adherence to technical specifications and quality standards (e.g., defect rates, reliability testing), and compliance with contractual terms. The Department of the Navy would likely have established acceptance criteria for the equipment, and successful completion would be measured against these requirements. The firm fixed-price nature also implies that cost control and adherence to the agreed-upon price are key performance aspects for the contractor.
What is the historical spending trend for similar wireless communications equipment by the Department of the Navy?
Analyzing historical spending trends for similar wireless communications equipment by the Department of the Navy requires access to comprehensive procurement databases. However, it is generally understood that naval forces require continuous investment in advanced communication systems to maintain operational effectiveness and interoperability. Spending in this area fluctuates based on modernization cycles, technological advancements, and specific operational needs. The Navy, like other branches of the DoD, prioritizes secure, resilient, and high-bandwidth communication capabilities, leading to consistent, albeit variable, procurement of related equipment over time. This $57.5 million award should be viewed within the broader context of the Navy's ongoing communication system upgrades and sustainment efforts.
What are the potential risks associated with relying on L3Harris Technologies for this critical communication equipment?
Potential risks associated with relying on L3Harris Technologies include standard supply chain vulnerabilities that could affect any large manufacturer, such as disruptions in raw material availability or component shortages. There's also the risk of technological obsolescence if the procured equipment does not have a long-term upgrade path or if newer, superior technologies emerge rapidly. Furthermore, dependence on a single large contractor, even one with a strong track record, can reduce leverage in future negotiations or create challenges if the contractor faces significant financial or operational difficulties. However, L3Harris's established position and the competitive nature of the award likely mitigate some of these risks.
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: $57,471,685
Exercised Options: $57,471,685
Current Obligation: $57,471,685
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
Start Date: 2022-01-26
Current End Date: 2024-06-01
Potential End Date: 2024-06-01 00:00:00
Last Modified: 2026-01-05
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