DoD awards $61.1M for radio equipment trade-in, with limited competition and a 210-day performance period
Contract Overview
Contract Amount: $61,124,785 ($61.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-26
End Date: 2026-01-22
Contract Duration: 210 days
Daily Burn Rate: $291.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC-16
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $61.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC-16 Key points: 1. The contract focuses on upgrading existing radio systems, indicating a need for modernization within the Navy's communication capabilities. 2. The award was not competed, raising questions about potential cost savings and the availability of alternative solutions. 3. The fixed-price contract type suggests that the government has a clear understanding of the scope and associated costs. 4. The short performance period of 210 days implies an urgent need for the equipment or a phased implementation approach. 5. The primary contractor, L3Harris Technologies, Inc., is a significant player in the defense communications sector. 6. The contract's value is substantial, requiring careful monitoring of performance and delivery.
Value Assessment
Rating: fair
Benchmarking the value of this specific trade-in kit is challenging without detailed cost breakdowns or comparisons to similar upgrade programs. The $61.1 million award for a 210-day period suggests a significant per-day expenditure. Without more context on the technology being replaced and the new capabilities provided, it's difficult to definitively assess value for money. However, the fixed-price nature of the contract provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that a competitive process might have yielded.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition. Without a bidding process, there's less pressure on the contractor to offer the lowest possible price.
Public Impact
Naval forces will benefit from modernized radio communication systems, enhancing operational effectiveness and interoperability. The services delivered include the trade-in and likely integration of new radio equipment, improving command and control capabilities. The geographic impact is primarily within Department of Defense operations, supporting naval units globally. Workforce implications may include training for personnel on the new radio systems and potential support roles for the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition could lead to higher costs for taxpayers.
- Sole-source awards require strong justification to ensure necessity and fairness.
- The short performance period may indicate rushed delivery, potentially increasing risk.
- Limited public information on the specific technology and its benefits makes value assessment difficult.
Positive Signals
- The contract addresses a clear need for technological modernization in critical communication systems.
- L3Harris Technologies is an established provider with a track record in defense electronics.
- The firm fixed-price contract type offers cost predictability for the government.
- The award supports the Department of the Navy's operational readiness and technological advancement.
Sector Analysis
This contract falls within the broader defense electronics and communications manufacturing sector. The market for military radio and communication systems is characterized by high technological barriers to entry and significant government procurement. Companies like L3Harris Technologies are key suppliers, often holding specialized expertise. Spending in this area is driven by the need for secure, reliable, and advanced communication for national security operations, with contracts often being sole-source or limited competition due to specific technical requirements.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by the prime contractor's name and the absence of specific set-aside flags. There is no explicit information regarding subcontracting opportunities for small businesses within this award notice. Further analysis would be needed to determine if L3Harris Technologies has a subcontracting plan that includes small businesses for this specific contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Radio Modernization Programs
- Naval Communication Systems Procurement
- Tactical Radio Systems
- Wireless Communications Equipment Manufacturing
Risk Flags
- Sole-source award
- Limited competition
- Short performance period
- Lack of detailed public cost breakdown
Tags
defense, department-of-defense, department-of-the-navy, radio-equipment, communication-systems, sole-source, firm-fixed-price, modernization, l3harris-technologies, new-york, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.1 million to L3HARRIS TECHNOLOGIES, INC.. TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC-16
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 $61.1 million.
What is the period of performance?
Start: 2025-06-26. End: 2026-01-22.
What is the specific nature of the 'TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC-16' and what are the key technological advancements it offers?
The 'TRADE-IN KIT, AN/PRC-150(C) TO AN/PRC-16' likely refers to a program where the Department of the Navy is upgrading its existing AN/PRC-150(C) radio systems to a newer generation, designated as AN/PRC-16. The AN/PRC-150(C) is a tactical vehicular/base station radio system. The AN/PRC-16 designation suggests a significant technological leap, potentially incorporating enhanced features such as improved encryption, wider frequency bands, higher data throughput capabilities, better resistance to jamming, reduced size/weight/power (SWaP) characteristics, and compatibility with newer networking protocols. These advancements are crucial for maintaining secure and effective command and control in increasingly complex operational environments.
Why was this contract awarded on a sole-source basis, and what are the implications for cost-effectiveness?
The sole-source award suggests that the Department of the Navy determined that only L3Harris Technologies, Inc. could provide the specific trade-in kit and associated services required for the AN/PRC-16 upgrade. This could be due to proprietary technology, unique integration requirements with existing Navy infrastructure, or a determination that L3Harris is the sole source for the necessary components or expertise. The primary implication for cost-effectiveness is the potential for higher prices compared to a competitive procurement. Without competing bids, the government lacks the leverage to negotiate the lowest possible price, and taxpayers may bear a premium for the convenience or necessity of a sole-source acquisition.
What is L3Harris Technologies, Inc.'s track record with the Department of Defense, particularly in radio and communication systems?
L3Harris Technologies, Inc. (formed from the merger of L3 Technologies and Harris Corporation) has a substantial and long-standing track record as a major defense contractor, particularly in the areas of communications, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) systems. Harris Corporation, prior to the merger, was a significant supplier of tactical radios, including software-defined radios, to the U.S. military. L3Harris continues this legacy, providing a wide range of communication solutions, including vehicular radios, manpack radios, and integrated communication systems. Their extensive experience with the Department of Defense suggests a deep understanding of military requirements, rigorous testing protocols, and established production capabilities, making them a likely candidate for sole-source awards when specific technological or integration needs arise.
How does the $61.1 million contract value compare to typical spending on similar radio modernization efforts?
Comparing the $61.1 million contract value requires understanding the scope and scale of the modernization. If this contract covers a significant number of radio systems across multiple naval platforms or units, the value might be considered reasonable for a sole-source acquisition of advanced technology. However, without knowing the quantity of units, the specific components included in the 'kit,' and the level of integration services, a direct comparison is difficult. Generally, large-scale radio modernization programs for military branches can range from tens to hundreds of millions of dollars. The relatively short performance period (210 days) suggests this might be for a specific batch or phase of upgrades, rather than a complete fleet-wide replacement, which could influence the perceived value.
What are the potential risks associated with a sole-source award for critical communication equipment?
The primary risks associated with a sole-source award for critical communication equipment include: 1) **Higher Costs:** As mentioned, the absence of competition can lead to inflated prices. 2) **Limited Innovation:** Relying on a single vendor may stifle innovation from other potential suppliers and limit the government's access to alternative or potentially superior technologies. 3) **Vendor Lock-in:** The government can become dependent on the sole-source provider for future upgrades, maintenance, and support, potentially at non-competitive prices. 4) **Supply Chain Vulnerability:** Dependence on a single supplier can create vulnerabilities if that supplier experiences production issues, financial instability, or geopolitical disruptions. 5) **Reduced Oversight Effectiveness:** While oversight mechanisms exist, the lack of competitive pressure can sometimes reduce the inherent incentive for the contractor to proactively identify and mitigate risks.
What is the expected impact of this contract on the Navy's operational readiness and technological edge?
This contract is expected to significantly enhance the Navy's operational readiness and technological edge by upgrading critical radio communication systems. The AN/PRC-16 systems, presumably superior to the AN/PRC-150(C), will likely offer improved security features (e.g., advanced encryption), greater bandwidth for data transmission, enhanced reliability in challenging environments, and better interoperability with other modern military networks. These improvements are vital for effective command and control, situational awareness, and coordinated operations across various naval platforms and units. By ensuring that its communication infrastructure remains current, the Navy can maintain its tactical advantage and respond more effectively to evolving threats.
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: 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: $61,124,785
Exercised Options: $61,124,785
Current Obligation: $61,124,785
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003922D0070
IDV Type: IDC
Timeline
Start Date: 2025-06-26
Current End Date: 2026-01-22
Potential End Date: 2026-01-22 00:00:00
Last Modified: 2025-07-14
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