Naval Sea Systems Command awards $22.3M contract for radar equipment, highlighting a competitive bidding process

Contract Overview

Contract Amount: $22,360,954 ($22.4M)

Contractor: L3harris Technologies, Inc

Awarding Agency: Department of Defense

Start Date: 2005-07-22

End Date: 2017-12-31

Contract Duration: 4,545 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!049619!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4304 !A!N! !N! ! !20050722!20090930!058004482!058004482!001216845!N!ITT INDUSTRIES, INC !7821 ORION AVE !VAN NUYS !CA!91406!82128!037!06!VAN NUYS !LOS ANGELES !CALIFORNIA!+000004882812!N!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !1! ! ! ! ! !20200930!B! ! !B! !C!N!J!1!001!N!1B!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! !1724!N00024!0001! !

Place of Performance

Location: VAN NUYS, LOS ANGELES County, CALIFORNIA, 91406

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to L3HARRIS TECHNOLOGIES, INC for work described as: 200512!049619!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4304 !A!N! !N! ! !20050722!20090930!058004482!058004482!001216845!N!ITT INDUSTRIES, INC !7821 ORION AVE !VAN NUYS !CA!91406!82128!037!06!VAN NUYS !LOS … Key points: 1. Contract awarded for radar equipment, crucial for naval operations. 2. Significant investment in defense electronics and communication systems. 3. Demonstrates a commitment to maintaining advanced naval capabilities. 4. The contract duration suggests a long-term need for these systems. 5. Potential for follow-on work or upgrades based on performance. 6. Focus on specialized radar equipment indicates a niche but vital requirement.

Value Assessment

Rating: good

The contract value of $22.3 million for radar equipment appears reasonable given the specialized nature of the systems required by the Naval Sea Systems Command. Benchmarking against similar contracts for advanced radar systems is challenging due to the proprietary nature of such technology and varying configurations. However, the firm fixed-price contract type suggests that the government has a clear understanding of the scope and cost, which generally leads to better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. The specific exclusion of sources suggests a deliberate process to ensure the best possible solution was sought. The competitive nature of the award is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: A competitive bidding process helps ensure that the government receives the best possible price for essential radar equipment, maximizing the value of taxpayer investments.

Public Impact

Naval operations will benefit from enhanced search, detection, and navigation capabilities. The contract supports the development and deployment of advanced military technology. Geographic impact is primarily within the defense sector, supporting naval bases and operations. Workforce implications include specialized engineering and manufacturing roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized components are required.
Long contract duration could lead to cost overruns if not managed effectively.
Reliance on a single contractor for critical radar systems poses a supply chain risk.

Positive Signals

Competitive award process suggests fair pricing and robust market engagement.
Firm fixed-price contract provides cost certainty for the government.
Award to a known entity in the defense sector implies a level of trust and established capability.

Sector Analysis

The contract falls within the broader defense electronics and communication equipment sector, specifically focusing on radar systems. This is a highly specialized and technologically advanced segment of the defense industry. The market is characterized by high barriers to entry due to R&D costs and stringent performance requirements. Comparable spending in this area can vary widely based on system complexity, but multi-million dollar awards for advanced radar are common for major defense programs.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the specialized nature of advanced radar equipment, it is likely that the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but these would depend on the prime contractor's procurement strategy and the specific components or services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract databases, though specific technical details may be sensitive.

Related Government Programs

Naval radar systems
Defense electronics procurement
Search and detection equipment
Military communication systems

Risk Flags

Long contract duration increases risk of technological obsolescence.
Potential for cost overruns on a firm fixed-price contract over an extended period.
Dependence on a single contractor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to L3HARRIS TECHNOLOGIES, INC. 200512!049619!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C4304 !A!N! !N! ! !20050722!20090930!058004482!058004482!001216845!N!ITT INDUSTRIES, INC !7821 ORION AVE !VAN NUYS !CA!91406!82128!037!06!VAN NUYS !LOS ANGELES !CALIFORNIA!+000004882812!N!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !1! ! ! ! ! !202

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 $22.4 million.

What is the period of performance?

Start: 2005-07-22. End: 2017-12-31.

What is the specific type of radar equipment being procured and its intended application?

The contract specifies 'RADAR EQUIPMENT, EXCEPT AIRBORNE' under the Product Service Code (PSC) NAICS code 334511. This indicates the procurement is for ground-based or ship-based radar systems, rather than those mounted on aircraft. These systems are likely intended for search, detection, navigation, guidance, and potentially targeting functions for naval vessels. The specific application would be determined by the Naval Sea Systems Command's operational requirements, which could range from maritime surveillance and anti-submarine warfare to air defense and navigation support.

How does the awarded price of $22.3 million compare to similar radar system procurements?

Direct comparison of the $22.3 million award to similar procurements is challenging without detailed specifications of the radar systems. However, for advanced naval radar systems, this value falls within a common range for significant system acquisitions or upgrades. Factors influencing price include technological sophistication (e.g., phased array, multi-function capabilities), range, resolution, environmental hardening, and integration complexity. Contracts for less advanced or smaller-scale radar systems would be considerably lower, while highly integrated combat system radars could be substantially higher.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

While specific KPIs are not detailed in the provided data, typical performance metrics for such defense contracts include on-time delivery, adherence to technical specifications, system reliability and maintainability, and operational effectiveness in simulated or actual environments. The firm fixed-price nature incentivizes the contractor to meet these requirements within budget. The Naval Sea Systems Command would likely have established testing and acceptance procedures to verify that the delivered radar equipment meets all contractual performance standards before final payment.

What is the track record of ITT Industries, Inc. (the original awardee) in fulfilling similar defense contracts?

ITT Industries, Inc. (now part of L3Harris Technologies) has a long history of supplying defense systems, including radar and electronic warfare equipment. While the specific contract data provided is from 2005, ITT was a significant defense contractor. Their track record would generally be assessed based on past performance reviews, delivery history, and technical execution on previous contracts. For this particular contract, the data indicates it was awarded in 2005 and completed in 2017, suggesting a long-term engagement. A thorough review would involve examining historical performance reports and any documented issues or successes.

What are the potential risks associated with the long duration (4545 days) of this contract?

The contract duration of 4545 days (approximately 12.5 years) presents several potential risks. Firstly, technological obsolescence is a significant concern; radar technology evolves rapidly, and systems delivered early in the contract might be outdated by its end. Secondly, cost escalation due to inflation or unforeseen manufacturing challenges can impact the fixed-price nature if not adequately managed. Thirdly, maintaining consistent contractor performance and oversight over such an extended period requires sustained effort. Finally, changes in military requirements or budget priorities could lead to contract modifications or termination.

How does this contract fit into the broader context of naval modernization or specific fleet requirements?

This contract for radar equipment likely supports the Navy's ongoing efforts in fleet modernization, enhancing situational awareness and operational capabilities across various naval platforms. Modern radar systems are critical for detecting threats, navigating complex environments, and supporting integrated combat systems. The specific procurement could be tied to upgrades for existing vessels, new ship construction programs, or the development of next-generation naval technologies. Its duration suggests a sustained need, possibly for a specific class of ships or a fleet-wide upgrade initiative.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7821 ORION AVE, VAN NUYS, CA, 91406

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline