DoD Awards $66.6M L3Harris Contract for AN/PRC-150(C) Trade-In Kit

Contract Overview

Contract Amount: $66,579,934 ($66.6M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-10

End Date: 2025-01-07

Contract Duration: 211 days

Daily Burn Rate: $315.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $66.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC Key points: 1. Significant award to L3Harris Technologies, Inc. for specialized communication equipment. 2. The contract focuses on upgrading existing radio systems, indicating a need for enhanced capabilities. 3. Lack of competition raises questions about potential price discovery and value for taxpayer dollars. 4. The sector is dominated by a few large defense contractors, limiting broader market participation.

Value Assessment

Rating: questionable

The contract value of $66.6 million for a trade-in kit is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar upgrade contracts or if it reflects a premium due to the sole-source nature.

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 the government as there is no market pressure to offer the best price.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for this equipment upgrade.

Public Impact

Modernization of critical military communication systems ensures operational readiness. Investment in advanced technology supports the warfighter's ability to communicate effectively in diverse environments. The contract supports a key defense contractor, potentially impacting the broader defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price negotiation.
  • Lack of transparency in pricing benchmarks.
  • Potential for overpayment due to non-competitive nature.

Positive Signals

  • Addresses critical communication system upgrade needs.
  • Supports a known defense contractor with relevant expertise.

Sector Analysis

This award falls within the defense communications sector, which is characterized by high technological requirements and significant government investment. Benchmarks for similar radio upgrade contracts are often proprietary or difficult to access due to the specialized nature of the equipment.

Small Business Impact

The contract was awarded to L3Harris Technologies, Inc., a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure the government is receiving fair value. The Department of the Navy is responsible for managing this contract, and robust auditing and performance monitoring would be necessary to mitigate risks associated with non-competitive procurement.

Related Government Programs

  • Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of competition may lead to inflated pricing.
  • Potential for vendor lock-in with sole-source provider.
  • Limited transparency on cost justification.
  • Risk of not obtaining the best available technology due to lack of market exploration.

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 $66.6 million to L3HARRIS TECHNOLOGIES, INC.. TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC

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 $66.6 million.

What is the period of performance?

Start: 2024-06-10. End: 2025-01-07.

What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The Department of Defense would need to provide documentation detailing the specific reasons for not competing this contract. Ensuring fair and reasonable pricing in such cases often involves detailed cost analysis, comparison to historical data, and independent government cost estimates, though the effectiveness of these measures can be limited without competitive pressure.

What is the long-term strategic value of upgrading to the AN/PRC-150(C) system, and how does it compare to potential alternative solutions?

The AN/PRC-150(C) is likely a critical component for maintaining secure and reliable battlefield communications. Upgrading ensures interoperability with newer systems and enhances capabilities like data transmission and encryption. A thorough analysis would compare its strategic value against emerging technologies and alternative communication platforms to ensure the investment aligns with future operational requirements and avoids technological obsolescence.

What is the potential impact on the defense communications market if sole-source awards become a trend for such upgrades?

A trend of sole-source awards for critical upgrades could stifle innovation and competition within the defense communications market. It may lead to reduced investment by smaller, innovative firms who see limited opportunities to break into the prime contracting space. This could ultimately result in higher costs for the government and a less dynamic, less competitive industrial base over time.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio 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: N0003920R0090

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $66,579,934

Exercised Options: $66,579,934

Current Obligation: $66,579,934

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003922D0070

IDV Type: IDC

Timeline

Start Date: 2024-06-10

Current End Date: 2025-01-07

Potential End Date: 2025-01-07 00:00:00

Last Modified: 2025-05-08

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