L3Harris Technologies awarded $63M for navigation systems, highlighting a sole-source procurement

Contract Overview

Contract Amount: $63,018,881 ($63.0M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-04-14

End Date: 2006-08-01

Contract Duration: 474 days

Daily Burn Rate: $133.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32902

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $63.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined costs for the government. 2. The contract duration of 474 days suggests a focused, short-term requirement. 3. Procurement was sole-source, raising questions about potential cost efficiencies from competition. 4. The North American Industry Classification System (NAICS) code 334511 points to specialized instrument manufacturing. 5. The award was made by the Defense Contract Management Agency, suggesting a defense-related application. 6. The contract value of approximately $63 million is substantial for specialized navigation systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source procurements. The firm-fixed-price structure provides cost certainty, but the absence of competition may have led to a higher price than could have been achieved through a competitive process. Further analysis would require understanding the specific technological advancements or unique capabilities L3Harris provided that justified a sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This typically occurs when a unique capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, it's difficult to ascertain if the price reflects the most economical option available in the market.

Public Impact

The primary beneficiaries are likely Department of Defense entities requiring advanced navigation and guidance systems. The contract supports the development and/or procurement of critical navigation, guidance, and control systems. The geographic impact is primarily within Florida, where the contractor is located. This contract supports specialized manufacturing jobs within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement limits price discovery and potentially increases costs for taxpayers.
Lack of competition may reduce incentives for innovation and efficiency from the contractor.
Limited transparency into the justification for sole-source award could obscure potential issues.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor like L3Harris suggests a focus on reliability and proven capabilities.
Contract supports critical defense capabilities, aligning with national security objectives.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. This is a highly specialized segment of the aerospace and defense industry, characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is often driven by defense modernization programs and the need for advanced avionics and navigation solutions. Comparable spending benchmarks would typically be found within other large defense contracts for similar systems.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a large prime contractor, the focus is likely on direct delivery of specialized capabilities rather than broader economic participation for small businesses. Further investigation into L3Harris's subcontracting plans would be needed to assess any indirect impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Transparency is limited due to the sole-source nature, but the firm-fixed-price structure simplifies some aspects of financial oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Navigation Systems Procurement
Aerospace and Defense Manufacturing
Sole-Source Defense Contracts
L3Harris Technologies Contracts

Risk Flags

Sole-source procurement
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.0 million to L3HARRIS TECHNOLOGIES, INC.. See the official description on USAspending.

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 $63.0 million.

What is the period of performance?

Start: 2005-04-14. End: 2006-08-01.

What specific navigation systems or technologies are being procured under this contract?

The provided data indicates the contract is for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511). However, it does not specify the exact nature of the systems. Given the contractor (L3Harris Technologies) and the awarding agency (Department of Defense), it is highly probable that these systems are intended for military aircraft, vessels, or ground vehicles, potentially including advanced inertial navigation systems, GPS receivers, radar altimeters, or integrated navigation suites. The lack of specific product details is common in high-level contract awards, often due to classification or proprietary information.

What is the justification for the sole-source award to L3Harris Technologies?

The justification for a sole-source award is not detailed in the provided data. Typically, sole-source procurements are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, extensive research and development already invested by the contractor, or urgent and compelling circumstances where competition is not feasible. For a company like L3Harris, known for its advanced defense electronics, the justification might stem from possessing specific patented technology or having developed a system integral to existing platforms that cannot be easily replicated or replaced by competitors.

How does the $63 million contract value compare to similar navigation system procurements?

Comparing the $63 million contract value requires context regarding the scope and duration of the systems procured. As a definitive contract with a duration of 474 days (approximately 1.3 years), this represents a significant investment. However, without knowing the specific technological sophistication, quantity, and lifecycle support included, a direct comparison is difficult. Large-scale defense procurements for complex systems can range from tens of millions to billions of dollars. This $63 million award appears to be for a substantial, but not necessarily program-defining, quantity or type of navigation system, likely reflecting specialized or advanced capabilities.

What is L3Harris Technologies' track record with the Department of Defense for navigation systems?

L3Harris Technologies, and its predecessor companies, have a long-standing and extensive track record of providing advanced technologies, including navigation, guidance, and control systems, to the Department of Defense. They are a major defense contractor known for expertise in areas such as avionics, electronic warfare, and communication systems. Their involvement in numerous defense programs suggests a strong capability to meet the stringent requirements of military applications. Awards like this $63 million contract are consistent with their established role as a key supplier of sophisticated systems to the DoD.

What are the potential risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for reduced value for money due to the lack of competition. Without competing bids, the government may not achieve the lowest possible price. There's also a risk that the contractor may have less incentive to innovate or improve efficiency compared to a competitive environment. Furthermore, if the justification for the sole-source award was not robust, there's a risk that alternative, potentially more cost-effective solutions were overlooked. Ensuring rigorous oversight and performance management becomes crucial in sole-source situations.

What is the historical spending pattern for similar navigation systems by the Department of Defense?

Historical spending patterns for similar navigation systems by the Department of Defense are substantial and varied, reflecting the critical role these technologies play in military operations. The DoD consistently invests billions of dollars annually across various programs for advanced navigation, guidance, and control systems. This spending encompasses research and development, procurement of new systems, and sustainment of existing platforms. The specific amount spent on systems like those potentially covered by this contract fluctuates based on modernization cycles, new platform introductions, and geopolitical requirements. The $63 million award is a component within this larger, ongoing investment.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $63,887,950

Exercised Options: $63,723,485

Current Obligation: $63,018,881

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline