DoD's $75M Radio Option contract awarded to L3Harris Technologies, Inc. without competition
Contract Overview
Contract Amount: $75,159,663 ($75.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-10
End Date: 2019-05-09
Contract Duration: 150 days
Daily Burn Rate: $501.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SW, RADIO OPTION , MUOS, PREMIER INSTALL IGF::OT::IGF
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $75.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: SW, RADIO OPTION , MUOS, PREMIER INSTALL IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract's value of $75.16 million represents a significant investment in radio and wireless communications equipment. 3. Limited competition suggests potential risks related to contractor performance and innovation. 4. The short performance period of 150 days may indicate a need for rapid deployment or a specific, time-bound requirement. 5. Awarded by the Department of the Navy, this contract falls under the broader defense sector's spending on communication systems. 6. The absence of small business set-asides or subcontracting requirements warrants further investigation into broader economic impacts.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical requirements. Without competitive bids, it's difficult to ascertain if the $75.16 million represents a fair market price. The lack of transparency in pricing negotiations for non-competed contracts often leads to concerns about cost-effectiveness. Further analysis would require access to internal cost breakdowns or comparisons with similar, albeit likely competitively awarded, systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not openly competed. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. It also raises questions about whether adequate market research was conducted to identify potential alternative sources.
Taxpayer Impact: Taxpayers may be paying a premium for this equipment due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The Department of Defense benefits from the acquisition of specialized radio and wireless communication equipment, crucial for operational effectiveness. This contract supports the military's communication infrastructure, potentially impacting troop safety and mission success. The primary beneficiary is L3Harris Technologies, Inc., receiving a substantial contract award. The geographic impact is primarily within the Department of Defense's operational theaters, though manufacturing may occur in New York. Workforce implications are likely concentrated within L3Harris Technologies, Inc., potentially involving specialized engineers and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 30 / 10
Warning Flags
- Sole-source award limits price competition and may result in higher costs for taxpayers.
- Lack of transparency in the procurement process hinders independent assessment of value for money.
- Absence of small business participation may limit broader economic benefits and innovation.
Positive Signals
- Award to a known entity (L3Harris Technologies) may indicate a reliance on established expertise for critical systems.
- The contract addresses a specific need within the Department of Defense's communication capabilities.
Sector Analysis
This contract falls within the broader 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector, classified under NAICS code 334220. This industry is characterized by rapid technological advancements and significant government procurement, particularly for defense and public safety applications. The market size for defense-related communications equipment is substantial, with contracts often awarded on a sole-source or limited-competition basis due to specialized requirements and proprietary technologies. Benchmarking against similar contracts is difficult without knowing the exact specifications of the 'RADIO OPTION' equipment.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements. This suggests that the primary awardee, L3Harris Technologies, Inc., will likely perform the majority of the work. The absence of small business involvement means that opportunities for smaller firms to contribute to this defense contract are likely limited, potentially impacting the broader small business ecosystem within the defense supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined by the contract terms, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the procurement process and pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Communications Systems
- Radio and Wireless Equipment Procurement
- Naval Communication Technology
- Defense Information Technology Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
Tags
defense, department-of-defense, department-of-the-navy, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, l3harris-technologies-inc, sole-source, delivery-order, firm-fixed-price, new-york, communications-equipment, wireless-communications
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.2 million to L3HARRIS TECHNOLOGIES, INC.. SW, RADIO OPTION , MUOS, PREMIER INSTALL IGF::OT::IGF
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 $75.2 million.
What is the period of performance?
Start: 2018-12-10. End: 2019-05-09.
What specific 'RADIO OPTION' capabilities does this contract procure, and why was it deemed sole-source?
The specific capabilities procured under this 'RADIO OPTION' contract are not detailed in the provided data. However, the sole-source award suggests that the Department of the Navy determined that L3Harris Technologies, Inc. was the only responsible source capable of providing the required equipment. This could be due to proprietary technology, unique integration requirements with existing systems, urgent operational needs, or a lack of sufficient market research to identify other potential vendors. Without further documentation, such as a Justification and Approval (J&A) for other than full and open competition, the precise reasons remain speculative. The $75.16 million value indicates a significant procurement, likely for advanced or specialized radio systems critical to naval operations.
How does the $75.16 million contract value compare to similar radio equipment procurements by the DoD?
Direct comparison of the $75.16 million contract value to similar radio equipment procurements is challenging without specific details on the 'RADIO OPTION' capabilities. However, for context, major defense contracts for communication systems can range from tens of millions to billions of dollars, depending on the scope, technology, and quantity. Sole-source awards, like this one, often carry a higher price tag than competitively bid contracts because they lack the downward price pressure from multiple bidders. To assess value, one would need to compare the unit cost, features, and performance specifications against other available systems, ideally those acquired through competitive processes, which is not possible with the current data.
What are the primary risks associated with awarding a $75.16 million contract on a sole-source basis?
The primary risks associated with awarding a $75.16 million contract on a sole-source basis include: 1. **Higher Costs:** Without competition, the government may pay a premium, as the contractor faces less pressure to offer the lowest possible price. 2. **Limited Innovation:** A lack of competitive pressure can reduce the incentive for the contractor to innovate or offer more cost-effective solutions. 3. **Potential for Poor Performance:** While L3Harris is an established company, sole-source awards can sometimes mask underlying performance issues, as there's no immediate alternative if issues arise. 4. **Reduced Transparency:** The procurement process is less transparent, making it harder for oversight bodies and the public to scrutinize the fairness and efficiency of the award. 5. **Dependency:** The government becomes dependent on a single supplier for critical equipment.
What is L3Harris Technologies, Inc.'s track record with the Department of Defense, particularly in radio systems?
L3Harris Technologies, Inc. (formed from the merger of L3 Technologies and Harris Corporation) has a significant and long-standing track record as a major defense contractor for the Department of Defense (DoD). Both legacy companies were heavily involved in providing advanced communication systems, including radios, electronic warfare systems, and other mission-critical technologies to various branches of the U.S. military. L3Harris is known for its expertise in areas such as secure communications, airborne platforms, and space and intelligence solutions. Their extensive portfolio and numerous existing contracts with the DoD suggest a strong capability and established relationship, making them a frequent recipient of sole-source or limited-competition awards for specialized or integrated systems where their specific technologies are deemed essential.
What are the historical spending patterns for similar radio and wireless communications equipment by the Department of the Navy?
Historical spending patterns for similar radio and wireless communications equipment by the Department of the Navy are substantial and varied. The Navy, like other military branches, continuously invests in upgrading its communication infrastructure to maintain operational superiority. This includes acquiring tactical radios, satellite communication systems, and specialized wireless devices for platforms ranging from ships and submarines to aircraft and ground forces. Spending often fluctuates based on technological advancements, evolving threats, and specific platform modernization programs. While specific figures for 'RADIO OPTION' procurements are not readily available, the Navy's overall spending on C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, which encompass radio equipment, typically runs into billions of dollars annually. Awards are often a mix of competitive and sole-source, depending on the uniqueness of the technology required.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003917R0001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $75,159,663
Exercised Options: $75,159,663
Current Obligation: $75,159,663
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003918D0070
IDV Type: IDC
Timeline
Start Date: 2018-12-10
Current End Date: 2019-05-09
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2019-10-22
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