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: ManufacturingCommunications Equipment ManufacturingRadio 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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