Navy Awards L3Harris $8.1M for ALQ-214 Electronic Warfare System Conversions

Contract Overview

Contract Amount: $8,120,398 ($8.1M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-05-29

Contract Duration: 609 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ALQ-214 (V)4 TO A(V)4 CONVERSIONS

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ALQ-214 (V)4 TO A(V)4 CONVERSIONS Key points: 1. Contract awarded to L3Harris Technologies, Inc. for ALQ-214 (V)4 to A(V)4 conversions. 2. The Department of the Navy is the contracting agency, with the Department of Defense overseeing. 3. This is a sole-source award, raising questions about price discovery and competition. 4. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns, but the fixed fee component aims to control profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to reduce bids.

Taxpayer Impact: The lack of competition for this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Enhances critical electronic warfare capabilities for naval aircraft. Ensures continued operational readiness of advanced defense systems. Supports a single prime contractor, potentially impacting broader industry innovation. Long-term sustainment of specialized defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Cost-plus contract type carries inherent cost overrun risk.
  • Lack of small business participation noted.

Positive Signals

  • Supports critical defense modernization.
  • Awarded to an established defense contractor.
  • Long-term contract duration ensures sustained capability.

Sector Analysis

This contract is within the aerospace and defense sector, specifically focusing on electronic warfare systems. Spending in this area is driven by national security needs and technological advancements in threat detection and countermeasures.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. This suggests the contract was not specifically set aside for small businesses and may not contribute to small business contracting goals.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. The Cost Plus Fixed Fee structure necessitates robust monitoring to ensure costs remain within reasonable bounds and the fixed fee is justified.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • No small business participation
  • Potential for cost overruns
  • Limited price competition

Tags

search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to L3HARRIS TECHNOLOGIES, INC.. ALQ-214 (V)4 TO A(V)4 CONVERSIONS

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 $8.1 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-05-29.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's difficult to assess if alternative competitive strategies were explored or deemed infeasible. A thorough review would examine the specific technical requirements and market research conducted to ensure a sole-source award was truly the only viable option.

How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure fair pricing?

Managing a Cost Plus Fixed Fee contract requires stringent oversight of incurred costs and the contractor's performance against the established scope. The government must diligently audit costs, ensure they are reasonable and allocable, and verify that the fixed fee is earned. Regular performance reviews and clear communication channels are essential to identify and address potential cost escalations early in the contract lifecycle.

What is the long-term strategic value of these ALQ-214 system conversions for the Navy's electronic warfare capabilities?

The ALQ-214 system is a crucial component of the Navy's electronic warfare suite, designed to protect aircraft from radar-guided threats. Converting older versions to the (V)4 standard likely incorporates updated technology, improved performance, and enhanced threat detection capabilities. This ensures the Navy maintains a relevant and effective electronic warfare posture against evolving adversary capabilities, contributing directly to aircrew survivability and mission success.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 1395 TROUTMAN BLVD NE, PALM BAY, FL, 32905

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: $10,306,997

Exercised Options: $8,120,398

Current Obligation: $8,120,398

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $258,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922G0005

IDV Type: BOA

Timeline

Start Date: 2024-09-27

Current End Date: 2026-05-29

Potential End Date: 2026-05-29 00:00:00

Last Modified: 2025-12-15

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