DoD awards $29.6M for navigational instruments, with L3Harris Technologies Inc. as the sole provider

Contract Overview

Contract Amount: $29,626,680 ($29.6M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-10-01

End Date: 2007-06-30

Contract Duration: 1,733 days

Daily Burn Rate: $17.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200303!006529!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001902C3059 !A!N! !N! !20021001!20041003!021715206!021715206!004203337!N!HARRIS CORPORATION !2400 PALM BAY RD NE !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000005116666!N!N!000000000000!6605!NAVIGATIONAL INSTRUMENTS !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! !Y! !N00019!0001! !

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200303!006529!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001902C3059 !A!N! !N! !20021001!20041003!021715206!021715206!004203337!N!HARRIS CORPORATION !2400 PALM BAY RD NE !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVA… Key points: 1. Contract awarded to L3Harris Technologies, Inc. for navigational instruments. 2. Significant portion of spending allocated to a single contractor. 3. Contract duration spans over four years. 4. Fixed-price contract type suggests cost certainty. 5. Geographic location of contractor is Florida. 6. NAICS code 334511 indicates a focus on system and instrument manufacturing.

Value Assessment

Rating: fair

The contract value of $29.6 million over approximately 4.5 years for navigational instruments appears to be within a reasonable range for specialized defense equipment. However, without specific details on the exact instruments or quantities, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for comparable systems would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, Inc., was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one source is capable of meeting the government's needs. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The primary beneficiaries are likely military aviation units requiring advanced navigational instruments. The contract supports the development, production, or sustainment of critical navigation systems for aircraft. The geographic impact is concentrated around the contractor's facilities in Melbourne, Florida, and potentially supporting military bases nationwide. Workforce implications include employment for engineers, technicians, and manufacturing personnel at L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if not closely monitored due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract awarded to an established defense contractor with likely relevant expertise.
Long-term contract suggests a sustained need for these navigational instruments.

Sector Analysis

The contract falls within the Defense sector, specifically the manufacturing of electronic and communication equipment, with a focus on navigational instruments. The market for such specialized defense systems is often characterized by a limited number of highly capable contractors due to high barriers to entry, including technological expertise and security clearances. Spending in this sub-sector is driven by military modernization and operational requirements.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a sole-source award to a large corporation, it is unlikely that significant subcontracting opportunities for small businesses were mandated or explored as part of the competitive process. The primary focus appears to be on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and quality standards. Accountability measures are inherent in the firm fixed-price structure, which places the financial risk on the contractor. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Military Aircraft Navigation Systems
Avionics Manufacturing
Defense Electronics Procurement
Naval Air Systems Command Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to L3HARRIS TECHNOLOGIES, INC.. 200303!006529!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001902C3059 !A!N! !N! !20021001!20041003!021715206!021715206!004203337!N!HARRIS CORPORATION !2400 PALM BAY RD NE !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000005116666!N!N!000000000000!6605!NAVIGATIONAL INSTRUMENTS !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2002-10-01. End: 2007-06-30.

What specific types of navigational instruments are being procured under this contract?

The contract specifies the procurement of navigational instruments under NAICS code 334511, which covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While the exact models or specifications are not detailed in the provided data, these instruments are critical for aircraft operation. They likely include systems such as GPS receivers, inertial navigation systems (INS), flight control computers, radar altimeters, or other sensors that provide positional, directional, and situational awareness data to pilots and flight systems. The 'NAVIGATIONAL INSTRUMENTS' description suggests a broad category, and the specific items would be detailed in the contract's statement of work.

How does the $29.6 million award compare to historical spending on similar navigational instruments by the Navy?

Comparing this $29.6 million award requires historical data on similar sole-source or competitive contracts for navigational instruments by the Naval Air Systems Command (NAVAIR) or other Department of Defense (DoD) entities. Without access to a comprehensive database of past procurements for comparable systems, a direct comparison is difficult. However, given the duration of over four years and the specialized nature of defense avionics, this amount appears substantial but not necessarily excessive for a sole-source award to a prime contractor like L3Harris. A detailed analysis would involve identifying contracts with similar Product Service Codes (PSCs) or NAICS codes, assessing their value, duration, and competition levels to establish a benchmark.

What are the key risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the absence of competition. Without competing bids, the government may not achieve the best possible price. Another significant risk is reduced innovation, as the contractor may have less incentive to develop more cost-effective or technologically advanced solutions. Furthermore, there's a risk of vendor lock-in, making it difficult and costly to switch to alternative suppliers in the future. Dependence on a single supplier can also create supply chain vulnerabilities if the contractor faces production issues or financial instability.

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

L3Harris Technologies, Inc. (and its predecessor companies) has a long-standing and extensive track record as a major defense contractor for the Department of Defense. They are known for providing a wide range of advanced electronic systems, including communications, avionics, and sensor technologies. For navigational instruments and related systems, L3Harris has consistently secured significant contracts across various military branches. Their history suggests a strong capability in developing and delivering complex defense hardware and software. While specific performance metrics for this particular contract are not detailed, their general standing as a key defense supplier indicates a substantial level of experience and established relationships within the DoD.

What oversight mechanisms are in place to ensure the effective use of funds for this contract?

Oversight for this contract is primarily managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring that the contractor, L3Harris Technologies, Inc., adheres to the terms and conditions of the contract. This includes monitoring performance, quality control, and delivery schedules. As it is a Firm Fixed Price (FFP) contract, the financial risk is largely borne by the contractor, which incentivizes cost control. However, the DCMA would still oversee progress payments and ensure that the work is progressing as planned. Additionally, the Naval Air Systems Command (NAVAIR) program office would maintain oversight of the technical aspects and overall program objectives. Inspector General reports and audits could also be initiated if specific concerns arise regarding waste, fraud, or abuse.

How does this contract fit into the broader context of US military aviation modernization efforts?

This contract for navigational instruments directly supports the broader context of US military aviation modernization by ensuring that aircraft are equipped with up-to-date and reliable navigation capabilities. Modern military operations, whether for combat, surveillance, or transport, rely heavily on precise navigation for mission success, safety, and efficiency. As older aircraft are upgraded or new platforms are introduced, the demand for advanced avionics, including sophisticated navigational systems, increases. This contract signifies the DoD's continued investment in maintaining and enhancing the operational effectiveness of its air assets, ensuring they can perform missions in complex and potentially contested environments.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 2400 PALM BAY RD NE, MELBOURNE, FL, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline