DoD awards $39.9M for radio equipment, with L3Harris Technologies securing the contract

Contract Overview

Contract Amount: $39,929,477 ($39.9M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-22

End Date: 2024-10-31

Contract Duration: 314 days

Daily Burn Rate: $127.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF WARRIOR ROBUST ENHANCED NETWORK FOR RADIOS

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PURCHASE OF WARRIOR ROBUST ENHANCED NETWORK FOR RADIOS Key points: 1. The contract value represents a significant investment in tactical communication systems. 2. Competition dynamics for this type of specialized equipment can influence pricing and innovation. 3. Performance risk is moderate, given the established nature of the technology and contractor. 4. This award falls within the broader context of defense modernization efforts. 5. The sector is characterized by high barriers to entry and a few dominant players. 6. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

Benchmarking the value of this specific radio equipment purchase against similar Department of Defense contracts is challenging due to the specialized nature of the 'Warrior Robust Enhanced Network for Radios'. However, the award amount of $39.9 million for a 314-day duration appears within a reasonable range for advanced tactical communication systems. The firm fixed-price contract type suggests that the government has negotiated a definitive price, mitigating cost overrun risks. Further analysis would require comparing the specific technical capabilities and quantities procured against market offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and a wider selection of solutions for the government. The open competition suggests that the Department of the Navy sought the best value from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially driving down costs and ensuring the government receives optimal value for its investment.

Public Impact

The primary beneficiaries are U.S. Navy personnel who will utilize the enhanced radio communication systems. The contract delivers advanced networking capabilities for tactical radio operations. The geographic impact is primarily within Department of Defense operational theaters. Workforce implications include potential support and maintenance roles for the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if the network architecture is proprietary.
  • Dependence on a single contractor for future upgrades and sustainment.
  • Ensuring interoperability with existing and future communication systems.

Positive Signals

  • Awarded through full and open competition, suggesting market validation.
  • Firm fixed-price contract provides cost certainty.
  • Contractor has a significant presence in defense communications technology.

Sector Analysis

The defense communications sector is a highly specialized segment of the broader electronics manufacturing industry. It is characterized by stringent performance requirements, long product development cycles, and significant government procurement. Companies like L3Harris Technologies are key players, often holding substantial contracts for advanced communication systems. The market size is substantial, driven by ongoing defense modernization and global security needs. This contract fits within the trend of upgrading tactical communication networks to enhance soldier effectiveness and battlefield awareness.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of advanced radio and networking equipment, it is common for prime contracts to be awarded to large, established defense contractors. However, L3Harris Technologies may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms for contracts, including contract performance monitoring, quality assurance surveillance plans, and financial audits. The firm fixed-price nature of this contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. The Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this award.

Related Government Programs

  • Tactical Radio Systems
  • Defense Communications Equipment
  • Wireless Communication Manufacturing
  • Department of the Navy Procurement

Risk Flags

  • Potential for vendor lock-in
  • Long-term sustainment and obsolescence concerns
  • Interoperability challenges with legacy systems

Tags

defense, department-of-defense, department-of-the-navy, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, firm-fixed-price, delivery-order, full-and-open-competition, l3harris-technologies, new-york, tactical-communications, wireless-communications-equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to L3HARRIS TECHNOLOGIES, INC.. PURCHASE OF WARRIOR ROBUST ENHANCED NETWORK FOR RADIOS

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 $39.9 million.

What is the period of performance?

Start: 2023-12-22. End: 2024-10-31.

What is the specific technical capability of the 'Warrior Robust Enhanced Network for Radios' and how does it compare to previous generations?

The 'Warrior Robust Enhanced Network for Radios' likely refers to a suite of advanced, hardened communication devices designed for battlefield use. These systems typically integrate voice and data capabilities, offering enhanced security features, increased range, and improved resistance to electronic warfare compared to older radio technologies. Specific technical specifications, such as data throughput, encryption standards, and network topology support, would detail the 'enhancements'. Without access to the detailed technical requirements of the contract, a precise comparison to previous generations is difficult. However, the 'robust' and 'enhanced network' descriptors suggest a focus on reliability, interoperability, and data-centric communication crucial for modern military operations.

How does the awarded price of $39.9 million compare to similar tactical radio network procurements by the Department of Defense?

Directly comparing the $39.9 million award for the 'Warrior Robust Enhanced Network for Radios' to other tactical radio procurements requires access to detailed contract data for similar systems, including quantities, technical specifications, and contract types. However, large-scale procurements of advanced, networked tactical communication systems for military branches can range from tens to hundreds of millions of dollars. Factors influencing price include the level of technological sophistication, the number of units purchased, the inclusion of software licenses, training, and sustainment services. Given the duration of 314 days and the specialized nature, this award appears to be for a significant capability upgrade or a substantial initial fielding.

What are the key performance indicators (KPIs) used to evaluate the success of this contract and the performance of L3Harris Technologies?

Key performance indicators for this contract would likely focus on technical performance, delivery schedule, and quality. Technical KPIs might include signal clarity and range under various environmental conditions, data transmission reliability, network uptime, and successful integration with other systems. Delivery KPIs would track adherence to the schedule outlined in the contract, ensuring timely delivery of the radios and associated equipment. Quality KPIs would assess the defect rate, compliance with specifications, and overall robustness of the hardware. L3Harris Technologies' performance would be measured against these agreed-upon metrics, potentially impacting future contract awards or incentive structures.

What is the historical spending pattern of the Department of the Navy for similar radio communication equipment over the past five years?

Analyzing the Department of the Navy's historical spending on similar radio communication equipment requires querying federal procurement databases for contracts related to tactical radios, secure communication systems, and wireless networking hardware. Over the past five years, defense spending on communication systems has generally remained robust, driven by the need to maintain technological superiority and enhance soldier connectivity. Trends likely show a shift towards more software-defined radios, integrated data capabilities, and resilient network architectures. Specific spending figures would vary annually based on modernization priorities, budget allocations, and the lifecycle of existing equipment. This $39.9 million award represents a portion of that ongoing investment.

What are the potential risks associated with relying on L3Harris Technologies for this specific radio network system?

Potential risks associated with relying on L3Harris Technologies for this radio network system include vendor lock-in, where the proprietary nature of the technology makes it difficult or costly to switch to alternative providers in the future. There's also a risk related to long-term sustainment and obsolescence; if L3Harris ceases production or support for certain components, the Navy might face challenges in maintaining the network. Furthermore, dependence on a single supplier for critical communication infrastructure can create vulnerabilities if the supplier experiences financial instability or strategic shifts. Ensuring robust service level agreements and clear exit strategies in the contract can help mitigate these risks.

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: 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: $39,929,477

Exercised Options: $39,929,477

Current Obligation: $39,929,477

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: 2023-12-22

Current End Date: 2024-10-31

Potential End Date: 2024-10-31 00:00:00

Last Modified: 2024-12-19

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