DoD Awards $10.4M L3Harris Contract for Indonesian Radio Systems
Contract Overview
Contract Amount: $10,424,820 ($10.4M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-30
End Date: 2025-12-31
Contract Duration: 915 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MULTI-BAND RADIOS, VERY HIGH AND ULTRA FREQUENCY RADIOS, HIGH FREQUENCY RADIOS, AND BATTLE MANAGEMENT SYSTEMS (BMSS) ON BEHALF OF THE GOVERNMENT OF INDONESIA (GOI).
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: MULTI-BAND RADIOS, VERY HIGH AND ULTRA FREQUENCY RADIOS, HIGH FREQUENCY RADIOS, AND BATTLE MANAGEMENT SYSTEMS (BMSS) ON BEHALF OF THE GOVERNMENT OF INDONESIA (GOI). Key points: 1. Contract awarded to L3Harris Global Communications, Inc. for radio and battle management systems. 2. The contract is a firm-fixed-price definitive contract with an estimated value of $10.4 million. 3. This procurement is not available for competition, raising potential concerns about price discovery. 4. The spending is within the IT and Defense sectors, supporting allied military communications.
Value Assessment
Rating: questionable
The contract value of $10.4 million for specialized communication systems is difficult to benchmark without competitive data. The lack of competition suggests potential for overpricing compared to a fully competed scenario.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. This limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayer funds are used for this foreign military sale, and the lack of competition could lead to inefficient use of these funds.
Public Impact
Supports U.S. foreign military sales objectives by providing critical communication equipment to allies. Enhances interoperability between U.S. and Indonesian forces in joint operations. The technology provided could have dual-use applications, impacting both military and civilian sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost justification
Positive Signals
- Supports allied military capabilities
- Procurement of advanced communication technology
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically focusing on advanced wireless communication equipment and battle management systems. Benchmarks for similar sole-source procurements of specialized military hardware are highly variable.
Small Business Impact
There is no indication that small businesses were involved in this procurement, as the contract was awarded to a large prime contractor and was not open to competition.
Oversight & Accountability
Oversight is primarily the responsibility of the Department of the Navy, which awarded the contract. The lack of competition necessitates robust internal review to ensure fair pricing and value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Potential for cost overruns
- Limited market research evidence
- Lack of transparency in pricing
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. MULTI-BAND RADIOS, VERY HIGH AND ULTRA FREQUENCY RADIOS, HIGH FREQUENCY RADIOS, AND BATTLE MANAGEMENT SYSTEMS (BMSS) ON BEHALF OF THE GOVERNMENT OF INDONESIA (GOI).
Who is the contractor on this award?
The obligated recipient is L3HARRIS GLOBAL COMMUNICATIONS, 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 $10.4 million.
What is the period of performance?
Start: 2023-06-30. End: 2025-12-31.
What is the specific justification for limiting competition on this contract, and how was the price determined to be fair and reasonable?
The justification for limiting competition is not provided in the data. Typically, such justifications include reasons like unique capabilities, urgent needs, or lack of available sources. Price reasonableness is usually determined through cost analysis, comparison to previous contracts, or market research, but without competitive bids, this process is inherently less robust.
What are the long-term risks associated with procuring specialized military hardware through limited competition for foreign partners?
Long-term risks include establishing a precedent for non-competitive awards, potentially leading to higher costs over time and reduced innovation. It can also create dependency on a single supplier, limiting future options and potentially impacting sustainment and upgrade costs.
How does this contract contribute to the overall effectiveness of the Indonesian military's communication capabilities?
This contract directly enhances the Indonesian military's communication capabilities by providing advanced multi-band, high frequency, and ultra-high frequency radios, along with Battle Management Systems. This integration is crucial for command and control, situational awareness, and interoperability, thereby improving overall operational effectiveness.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: M6785423R2003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1350 JEFFERSON RD, ROCHESTER, NY, 14623
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: $10,424,820
Exercised Options: $10,424,820
Current Obligation: $10,424,820
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-30
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-30
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