DoD's $50M upgrade for AN/PRC-150(C) to AN/PRC-160(V) radio systems awarded to L3Harris Technologies
Contract Overview
Contract Amount: $50,153,385 ($50.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-12-03
End Date: 2020-06-30
Contract Duration: 210 days
Daily Burn Rate: $238.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KIT, UPGD AN/PRC-150(C) TO AN/PRC-160(V)
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $50.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: KIT, UPGD AN/PRC-150(C) TO AN/PRC-160(V) Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract value of $50.15M for radio equipment upgrades suggests a significant investment in tactical communications. 3. Limited competition may lead to higher costs for taxpayers compared to a fully competed procurement. 4. The upgrade to AN/PRC-160(V) likely enhances capabilities such as frequency hopping, encryption, and data transmission. 5. Performance context is limited due to the sole-source nature, making direct benchmarking difficult. 6. The contract falls within the broader defense communications equipment manufacturing sector.
Value Assessment
Rating: questionable
Benchmarking the value for this sole-source contract is challenging without competitive bids. The price of $50.15M for radio upgrades needs scrutiny against similar sole-source procurements or internal cost estimates by the Department of Defense. Without competition, it's difficult to ascertain if the government received the best possible price. The fixed-price nature of the contract offers some cost certainty, but the initial price point is a key area for review.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to L3Harris Technologies, Inc. This indicates that the Department of the Navy did not conduct a competitive bidding process. Reasons for sole-sourcing can include unique capabilities, urgent needs, or lack of other qualified sources. The absence of competition limits price discovery and may result in a higher price than if multiple vendors had vied for the contract.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without competing offers, there is less pressure on the contractor to offer the lowest possible price, potentially leading to less efficient use of public funds.
Public Impact
The primary beneficiaries are the U.S. Navy personnel who will receive upgraded tactical radio systems, enhancing their operational effectiveness. The services delivered include the upgrade of existing AN/PRC-150(C) radios to the AN/PRC-160(V) standard, implying improved communication capabilities. The geographic impact is likely focused on naval deployments and operational theaters where these radios are utilized. Workforce implications may include training for personnel on the new radio systems and potential sustainment activities for the upgraded equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the sole-source justification requires further review.
- Limited public data on the specific technical improvements and their cost-effectiveness.
- Contract duration of 210 days is relatively short for a major equipment upgrade, raising questions about the scope and phasing.
- No small business participation noted, which could be an area for future consideration.
Positive Signals
- Upgrade to a newer, potentially more capable radio system (AN/PRC-160(V)).
- Firm fixed-price contract provides cost certainty once awarded.
- Award to an established defense contractor with existing expertise in radio systems.
- Specific contract number and award amount are publicly available, indicating a degree of transparency.
Sector Analysis
The defense communications sector is characterized by high technological sophistication and significant government investment. Companies like L3Harris Technologies are key players, providing advanced radio, satellite, and electronic warfare systems. This contract for radio upgrades fits within the broader market for tactical communication equipment, which is essential for modern military operations. Spending in this area is often driven by the need to maintain technological superiority and interoperability across different platforms and services.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, L3Harris Technologies, Inc., is a large business. There is no explicit mention of subcontracting plans for small businesses within the provided data. This suggests that the primary contract award did not directly benefit the small business ecosystem, although L3Harris may engage small businesses in its supply chain independently.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Defense Contract Management Agency (DCMA) may also provide oversight for contract performance. Transparency is limited due to the sole-source nature, making it harder to assess the full extent of oversight applied during the procurement phase. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Tactical Radio Systems
- Military Communications Equipment
- Department of the Navy Procurement
- L3Harris Technologies Contracts
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price overruns
- Limited transparency in justification
Tags
defense, department-of-defense, department-of-the-navy, l3harris-technologies, radio-equipment, communications-equipment, sole-source, firm-fixed-price, upgrade, tactical-radio, new-york, not-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.2 million to L3HARRIS TECHNOLOGIES, INC.. KIT, UPGD AN/PRC-150(C) TO AN/PRC-160(V)
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 $50.2 million.
What is the period of performance?
Start: 2019-12-03. End: 2020-06-30.
What is the specific technical advantage of the AN/PRC-160(V) over the AN/PRC-150(C) that justified a sole-source award?
The AN/PRC-160(V) is a next-generation, wideband tactical radio designed to provide enhanced situational awareness and secure voice and data communications. Key advantages over older systems like the AN/PRC-150(C) often include improved encryption capabilities (e.g., AES encryption), higher data throughput for transmitting larger files and video, extended range, and potentially reduced size, weight, and power (SWaP) consumption. It may also incorporate advanced waveforms for resilient communication in contested electromagnetic environments. The justification for a sole-source award would typically hinge on L3Harris possessing unique intellectual property, proprietary technology, or an established integration path for this specific upgrade that cannot be replicated by other vendors within the required timeframe or without significant re-engineering, which the Navy deemed too costly or time-prohibitive.
How does the $50.15M contract value compare to historical spending on similar radio upgrades within the Navy or DoD?
Direct historical comparisons for this specific upgrade are difficult without more granular data on previous AN/PRC-150(C) upgrade programs or procurements of similar AN/PRC-160(V) systems. However, $50.15 million represents a substantial investment for a single contract, suggesting a significant quantity of radios being upgraded or a complex upgrade process. To benchmark effectively, one would need to analyze the number of units being upgraded, the specific technological enhancements included, and the contract type (e.g., firm-fixed-price vs. cost-plus). Comparing this to other sole-source awards for communication equipment or to the total lifecycle cost of fielding such systems would provide better context. Without competitive bids, it's challenging to determine if this represents a fair market price.
What are the primary risks associated with awarding a $50M contract on a sole-source basis?
The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. Without competing proposals, the government lacks a clear benchmark to ensure it is receiving the best value for its money. This can lead to overspending. Another risk is reduced innovation, as the sole contractor may have less incentive to propose cost-saving efficiencies or cutting-edge solutions beyond the minimum required. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, potentially creating vendor lock-in and limiting future flexibility. There's also a risk of contractor complacency regarding performance and delivery schedules, although contract terms and oversight aim to mitigate this.
What is L3Harris Technologies' track record with the Department of Defense, particularly in providing radio communication systems?
L3Harris Technologies, Inc. (and its predecessor companies) has a long-standing and extensive track record of providing a wide range of communication systems, electronic warfare capabilities, and other defense technologies to the Department of Defense and allied nations. They are a major prime contractor for numerous programs involving tactical radios, satellite communications, and integrated C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) solutions. Their portfolio includes various radio families used across different military branches. Given their significant presence and established expertise in this domain, the award of this sole-source contract for radio upgrades aligns with their historical role as a key supplier of advanced communication hardware and software to the DoD.
What are the potential implications for future procurements if this sole-source award is perceived as lacking value for money?
If this sole-source award is later determined to have been awarded at a price significantly above fair market value, it could lead to increased scrutiny of future sole-source justifications within the Department of the Navy and potentially across the DoD. Contracting officers might face greater pressure to conduct more thorough market research, explore alternative solutions, or justify competitive procurements more rigorously. It could also prompt congressional interest or Government Accountability Office (GAO) reviews of sole-source procurement practices. For L3Harris, a perception of poor value could impact their reputation and future bidding opportunities, although their established position often provides a buffer. Ultimately, it underscores the importance of robust price analysis and justification for non-competitive awards.
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: $50,153,385
Exercised Options: $50,153,385
Current Obligation: $50,153,385
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003918D0070
IDV Type: IDC
Timeline
Start Date: 2019-12-03
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2020-05-20
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