DoD awards $43.5M to L3Harris for wireless comms equipment, raising competition concerns
Contract Overview
Contract Amount: $43,489,485 ($43.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-17
End Date: 2020-06-30
Contract Duration: 287 days
Daily Burn Rate: $151.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HFMP
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $43.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: HFMP Key points: 1. Significant award to a single large contractor. 2. Lack of competition may impact price discovery. 3. Focus on wireless communications equipment manufacturing. 4. Contract awarded by the Department of the Navy.
Value Assessment
Rating: questionable
The award amount of $43.5M for wireless communications equipment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition for this $43.5M award means taxpayers may not have received the best possible price for the wireless communications equipment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation if only one supplier is engaged. Ensuring the delivered equipment meets all technical specifications is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source award
Positive Signals
- Award to established contractor
- Specific equipment for defense needs
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector for defense can fluctuate based on technological advancements and operational requirements.
Small Business Impact
The contract was awarded to L3Harris Technologies, Inc., a large business. There is no indication that small businesses were involved in this specific award, missing an opportunity for their participation.
Oversight & Accountability
Oversight is needed to ensure the sole-source award represents fair value and that the delivered equipment meets all performance requirements. Documentation justifying the sole-source decision should be scrutinized.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to non-competitive nature.
- Limited visibility into cost breakdown.
- Dependency on a single contractor for critical equipment.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.5 million to L3HARRIS TECHNOLOGIES, INC.. HFMP
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 $43.5 million.
What is the period of performance?
Start: 2019-09-17. End: 2020-06-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. Without specific documentation, it's presumed that the Department of the Navy determined L3Harris Technologies, Inc. was the only viable option to fulfill the requirement for this specific wireless communications equipment at the time of the award.
How can the government ensure fair pricing without competition?
Even in sole-source situations, the government can employ several strategies to ensure fair pricing. This includes conducting thorough market research to establish independent cost estimates, negotiating aggressively based on historical pricing or commercial data, and requiring detailed cost breakdowns from the contractor. Robust contract clauses and oversight can also incentivize cost control.
What is the risk of relying on a single supplier for critical communications equipment?
Relying on a single supplier for critical communications equipment poses significant risks, including supply chain vulnerabilities, potential for price gouging, and lack of innovation. If the sole supplier faces production issues, financial instability, or geopolitical challenges, it could severely disrupt the government's operational capabilities. Diversification of suppliers, where feasible, mitigates these risks.
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: $43,489,485
Exercised Options: $43,489,485
Current Obligation: $43,489,485
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003918D0070
IDV Type: IDC
Timeline
Start Date: 2019-09-17
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2020-05-11
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