DoD Awards L3Harris $44M for Dismount Kits, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $44,018,520 ($44.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-29
End Date: 2012-10-12
Contract Duration: 441 days
Daily Burn Rate: $99.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DISMOUNT KIT W/RT AND HANDSET
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $44.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: DISMOUNT KIT W/RT AND HANDSET Key points: 1. Significant award to a single large contractor, L3Harris Technologies. 2. Contract awarded under full and open competition, but specific pricing details are limited. 3. Potential for higher costs due to lack of detailed cost breakdowns. 4. Sector context suggests specialized communication equipment, often with high R&D costs.
Value Assessment
Rating: fair
The total award of $44M for 1 unit (likely a large lot) makes per-unit cost analysis difficult without further breakdown. The firm fixed-price contract suggests cost certainty, but the benchmark is unclear without more data on similar kits.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the limited data on the specific 'dismount kit' and its components makes it hard to assess if the competition truly drove the best value.
Taxpayer Impact: Taxpayer funds are being used for specialized military communication equipment. The effectiveness of the competition in securing the best price is not fully transparent.
Public Impact
Military personnel will receive updated communication equipment. The award supports a major defense contractor, potentially impacting jobs in New York. Transparency in defense spending is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown
- Limited insight into specific kit components
- Potential for price creep in future similar contracts
Positive Signals
- Awarded under full and open competition
- Firm fixed-price contract provides cost certainty
Sector Analysis
The award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector for defense is often driven by technological advancements and specialized requirements, leading to potentially higher unit costs.
Small Business Impact
The awardee, L3Harris Technologies, is a large corporation, and there is no indication that small businesses were significantly involved in this specific contract as subcontractors. Further analysis would be needed to confirm.
Oversight & Accountability
The Department of the Navy awarded this contract. Standard oversight mechanisms for defense contracts would apply, but the limited public data makes detailed accountability assessment challenging.
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 detailed cost breakdown hinders value assessment.
- Limited public information on specific kit capabilities.
- Potential for limited competition due to specialized nature of equipment.
- Benchmark pricing data is not readily available.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.0 million to L3HARRIS TECHNOLOGIES, INC.. DISMOUNT KIT W/RT AND HANDSET
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 $44.0 million.
What is the period of performance?
Start: 2011-07-29. End: 2012-10-12.
What specific technological capabilities does this 'dismount kit' provide, and how do they justify the $44M cost?
The 'dismount kit' likely refers to portable communication and electronic equipment for soldiers operating away from main bases. Without detailed specifications, it's difficult to ascertain the exact capabilities. The high cost could be attributed to advanced encryption, ruggedization, long-range communication, and integration with existing military networks, all of which involve significant R&D and manufacturing expenses.
How effectively did the 'full and open competition' ensure competitive pricing for specialized communication equipment?
While 'full and open competition' is the preferred method, its effectiveness in ensuring competitive pricing depends on the number and capability of bidders, as well as the clarity of the solicitation. For highly specialized equipment like this, the pool of qualified bidders might be limited, potentially reducing competitive pressure. The firm fixed-price nature suggests a negotiated price, but without benchmark data, assessing its competitiveness is challenging.
What is the long-term strategic value of this dismount kit to the Department of the Navy?
The long-term strategic value lies in enhancing the situational awareness, command and control, and survivability of dismounted naval personnel. Modern communication capabilities are critical for mission success in complex environments. The investment aims to equip sailors with reliable and advanced tools, potentially improving operational effectiveness and reducing risks associated with communication failures.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0016411T0166
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 25
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,018,520
Exercised Options: $44,018,520
Current Obligation: $44,018,520
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0163N
IDV Type: FSS
Timeline
Start Date: 2011-07-29
Current End Date: 2012-10-12
Potential End Date: 2012-10-12 00:00:00
Last Modified: 2011-12-15
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