DoD awards $21.9M for aircraft communication systems, with L3Harris Technologies securing the sole bid

Contract Overview

Contract Amount: $21,905,980 ($21.9M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-12-30

End Date: 2016-03-18

Contract Duration: 809 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT AWARD OF A ONE TIME BUY, WITH A 100% QUANTITY OPTION, FIRM-FIXED PRICE, CONTRACT FOR THE FOLLOWING FOUR NSNS: RECEIVER TRANSMITTER RT-1478D(C)/ARC-201D(V), P/N A3259311-1, 5821-01-423-8827. WIRING HARNESS BRANCHED (W31), P/N A3307099-1, 5995-01-567-6805. WIRING HARNESS,BRANCHED (W35), P/N A3307491-1, 5995-01-574-2583. WIRING HARNESS BRANCHED (W32), P/N A3307096-1, 5995-01-574-2726.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: CONTRACT AWARD OF A ONE TIME BUY, WITH A 100% QUANTITY OPTION, FIRM-FIXED PRICE, CONTRACT FOR THE FOLLOWING FOUR NSNS: RECEIVER TRANSMITTER RT-1478D(C)/ARC-201D(V), P/N A3259311-1, 5821-01-423-8827. WIRING HARNESS BRANCHED (W31), P/N A3307099-1, 5995-01-567-6805. WIRING HARNESS… Key points: 1. The contract focuses on essential aircraft communication components, including receivers and wiring harnesses. 2. A single bid suggests limited market engagement or potential barriers to entry for competitors. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially impacting final pricing. 4. Awarded in 2013, the contract's performance period extended into 2016, indicating a moderate duration. 5. The Defense Logistics Agency's procurement highlights the ongoing need for specialized military electronics. 6. The absence of small business set-asides means opportunities for smaller firms may be limited.

Value Assessment

Rating: fair

The contract value of $21.9 million for specific aircraft communication components appears within a reasonable range for specialized military hardware. However, without detailed cost breakdowns or comparisons to similar, recently awarded contracts for identical or closely related NSNs, a precise value-for-money assessment is challenging. The firm-fixed-price nature of the award means the government is committed to the stated price, assuming the contractor can deliver within that budget. Benchmarking against market rates for these specific parts would require access to detailed pricing data from multiple suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a less common method than standard full and open competition. It implies that while competition was sought, specific reasons led to the exclusion of certain sources, potentially limiting the number of eligible bidders. The data indicates only one bid was received, which significantly reduces the competitive pressure and may have implications for price discovery. Further investigation into the 'exclusion of sources' rationale is needed to understand the full competitive landscape.

Taxpayer Impact: A single bid limits the government's ability to negotiate the best possible price, potentially leading to higher costs for taxpayers. It also raises questions about whether the exclusion of other qualified sources was justified and if it prevented a more competitive outcome.

Public Impact

The primary beneficiaries are military aviation units requiring updated or replacement communication systems for aircraft. The contract delivers critical components: Receiver Transmitter RT-1478D(C)/ARC-201D(V) and associated wiring harnesses. The geographic impact is likely global, supporting deployed U.S. military assets wherever these aircraft operate. The contract supports the manufacturing and supply chain workforce within the defense electronics sector, specifically at L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and lack of innovation.
The 'exclusion of sources' justification needs scrutiny to ensure fair market access.
Reliance on a single supplier for critical components can create supply chain vulnerabilities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established defense contractor like L3Harris suggests a degree of reliability.
Procurement addresses a specific, stated need for operational military equipment.

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector (NAICS 334220). This sector is characterized by the production of communication infrastructure and equipment. The market for military-grade communication systems is specialized, often requiring adherence to stringent performance and reliability standards. Spending in this area is driven by defense modernization efforts and the need to maintain operational readiness of aging and new aircraft fleets. Comparable spending benchmarks would involve analyzing other contracts for similar avionics and communication hardware within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The award to L3Harris Technologies, a large defense contractor, suggests that subcontracting opportunities for small businesses might exist within the execution of this contract. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. The absence of a small business set-aside means that larger prime contractors are the primary recipients of the contract value.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA), responsible for ensuring timely delivery and adherence to specifications. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet all requirements within the agreed price. Transparency is facilitated through contract award databases, although detailed performance metrics and cost breakdowns may not be publicly available. The Inspector General of the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Aircraft Communication Systems
Avionics Procurement
Defense Logistics Agency Contracts
Military Radio Equipment
Wireless Communications Manufacturing

Risk Flags

Limited competition (single bid)
Potential for higher costs due to lack of competition
Justification for 'exclusion of sources' requires review
Supply chain risk associated with single source

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to L3HARRIS TECHNOLOGIES, INC.. CONTRACT AWARD OF A ONE TIME BUY, WITH A 100% QUANTITY OPTION, FIRM-FIXED PRICE, CONTRACT FOR THE FOLLOWING FOUR NSNS: RECEIVER TRANSMITTER RT-1478D(C)/ARC-201D(V), P/N A3259311-1, 5821-01-423-8827. WIRING HARNESS BRANCHED (W31), P/N A3307099-1, 5995-01-567-6805. WIRING HARNESS,BRANCHED (W35), P/N A3307491-1, 5995-01-574-2583. WIRING HARNESS BRANCHED (W32), P/N A3307096-1, 5995-01-574-2726.

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2013-12-30. End: 2016-03-18.

What is the track record of L3Harris Technologies in fulfilling similar defense contracts?

L3Harris Technologies, Inc. is a major American aerospace and defense technology innovator, formed through the merger of L3 Technologies and Harris Corporation. The company has a substantial track record of delivering complex systems and components to the U.S. Department of Defense and allied nations. Their portfolio includes a wide range of products and services, such as communication systems, electronic warfare technology, avionics, and space and intelligence solutions. Historically, L3Harris has demonstrated capability in producing and integrating radio communication equipment, including airborne systems, aligning with the nature of the contract for receiver transmitters and wiring harnesses. Their experience suggests a strong capacity to meet the technical specifications and production demands of such military procurements. However, as with any large contractor, specific contract performance can vary, and a detailed review of past performance on similar contracts would be necessary for a comprehensive assessment.

How does the awarded price compare to market rates for similar communication components?

Determining the precise market rate comparison for this specific contract is challenging without access to proprietary pricing data or recent competitive bids for identical National Stock Numbers (NSNs). The awarded amount of $21.9 million covers multiple NSNs (Receiver Transmitter RT-1478D(C)/ARC-201D(V), and three types of wiring harnesses) with a quantity of one, plus a 100% option. The firm-fixed-price nature means the price was set at the time of award. To benchmark effectively, one would need to analyze recent awards for these specific NSNs or functionally equivalent parts from other manufacturers, considering factors like quantity, contract type, and delivery timelines. Given the specialized nature of military avionics and the limited competition indicated, the price could be at a premium compared to commercial off-the-shelf equivalents, but potentially competitive within the defense procurement landscape.

What are the primary risks associated with a sole-bidder scenario in defense contracting?

A sole-bidder scenario, as indicated by the 'limited' competition and likely single offer, presents several key risks for defense contracting. Firstly, it significantly weakens the government's negotiating position, potentially leading to higher prices than would be achievable in a competitive environment. The lack of alternatives reduces the incentive for the sole bidder to offer the most cost-effective solution. Secondly, it raises concerns about market dynamics; it could signal barriers to entry for other potential suppliers, or indicate a lack of market interest due to complexity or low volume. This can lead to a less resilient supply chain, making the government dependent on a single source. Lastly, it increases the risk of contractor complacency regarding quality or delivery schedules, as the government has fewer immediate options if performance issues arise. The 'exclusion of sources' aspect further compounds this by suggesting specific limitations were placed on who could bid.

What is the historical spending pattern for these specific NSNs or similar communication equipment by the DoD?

Analyzing historical spending patterns for these specific NSNs (Receiver Transmitter RT-1478D(C)/ARC-201D(V), P/N A3259311-1, 5821-01-423-8827; and three wiring harnesses: P/N A3307099-1, 5995-01-567-6805; P/N A3307491-1, 5995-01-574-2583; P/N A3307096-1, 5995-01-574-2726) requires access to detailed federal procurement databases. However, based on the nature of the items (avionics components for aircraft communication), it's reasonable to infer that the Department of Defense (DoD) would have recurring needs for such equipment due to aircraft fleet maintenance, upgrades, and attrition. Spending on similar communication and avionics hardware typically fluctuates based on defense budgets, modernization programs, and the operational tempo of military branches. Contracts for such specialized components are often awarded periodically, sometimes through competitive processes and other times via sole-source or limited competition awards, depending on availability and specific requirements. The $21.9 million award in 2013 suggests a significant procurement event for these items at that time.

What does the 'Full and Open Competition After Exclusion of Sources' contract type imply for this award?

The contract type 'Full and Open Competition After Exclusion of Sources' (often referred to as FAR 6.302-1 or similar justifications) indicates that the agency initially intended to conduct a full and open competition but subsequently excluded certain sources based on specific justifications outlined in the Federal Acquisition Regulation (FAR). This typically occurs when only one or a limited number of responsible sources are capable of providing the supplies or services required at a reasonable price. Reasons might include unique capabilities, proprietary data, or urgent needs that preclude a broader competition. In this specific case, it resulted in only one bid being submitted. This implies that the Defense Logistics Agency (DLA) had a rationale for limiting the pool of potential bidders, and that rationale, combined with market conditions, led to a single offer. While it aims to ensure the government obtains necessary items, it bypasses the broader competitive benefits typically associated with standard full and open competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPRBL113R0006

Offers Received: 1

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: $21,905,980

Exercised Options: $21,905,980

Current Obligation: $21,905,980

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $3,553,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline