L3Harris Technologies awarded $27M for countermeasure receivers, a sole-source contract with a 3-year duration

Contract Overview

Contract Amount: $27,040,152 ($27.0M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-15

End Date: 2023-06-15

Contract Duration: 1,003 days

Daily Burn Rate: $27.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REDESIGNED AND PRODUCTION OF BAND 4-8 COUNTERMEASURE RECEIVER

Place of Performance

Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: REDESIGNED AND PRODUCTION OF BAND 4-8 COUNTERMEASURE RECEIVER Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Focus on specialized defense equipment suggests a critical, but potentially limited, market. 3. Long-term contract duration indicates a sustained need for these countermeasure systems. 4. The firm-fixed-price structure aims to control costs, but initial pricing needs scrutiny. 5. Performance context is tied to the Department of Defense's ongoing needs for advanced defense systems.

Value Assessment

Rating: fair

The contract value of $27 million for countermeasure receivers appears substantial. Without specific benchmarks for similar systems or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price contract type suggests an attempt to cap costs, but the absence of competition means there's no direct market comparison to gauge pricing efficiency. Further analysis would require understanding the technological sophistication and specific capabilities of these receivers compared to alternatives or previous generations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3Harris Technologies was the only vendor considered. This approach is typically used when a unique capability or proprietary technology is required, or in situations where only one responsible source exists. The lack of competition means that taxpayers did not benefit from a competitive bidding process, which could have potentially driven down costs or led to innovative solutions from multiple providers.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing and terms for taxpayers. This can result in higher costs than might be achieved through an open bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring advanced countermeasure receiver technology. The services delivered involve the production and supply of critical defense equipment. The geographic impact is primarily within the United States, with potential deployment to various operational theaters. Workforce implications include skilled manufacturing and engineering roles within L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for innovation and efficiency from the contractor.
Contract duration of over three years requires ongoing monitoring to ensure continued value.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
L3Harris Technologies is an established defense contractor with relevant expertise.
The contract addresses a specific and likely critical defense requirement.

Sector Analysis

The defense electronics sector is characterized by high technological barriers to entry, significant R&D investment, and long product development cycles. Contracts for specialized systems like countermeasure receivers are crucial for maintaining military technological superiority. Spending in this area is driven by evolving threat landscapes and the need for advanced electronic warfare capabilities. Benchmarking this contract would involve comparing it to other sole-source awards for similar specialized defense electronics, considering factors like technological complexity and production volume.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary contract is with a large defense contractor, and opportunities for small businesses may be limited unless L3Harris Technologies voluntarily engages them for specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally limited for sole-source defense contracts due to national security considerations, but contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Electronic Warfare Systems
Defense Radar and Navigation Systems
Military Aircraft Components
Aerospace and Defense Manufacturing

Risk Flags

Sole-source award
Potential for limited competition driving higher costs
Long-term contract duration requires ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to L3HARRIS TECHNOLOGIES, INC.. REDESIGNED AND PRODUCTION OF BAND 4-8 COUNTERMEASURE RECEIVER

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2020-09-15. End: 2023-06-15.

What is the specific technological advancement or unique capability that necessitated a sole-source award for these countermeasure receivers?

Sole-source awards are typically justified when a product or service possesses unique capabilities, is protected by intellectual property rights, or when only one responsible source can fulfill the requirement. For these countermeasure receivers, the justification likely stems from proprietary technology developed by L3Harris Technologies, specific integration requirements with existing defense platforms, or a lack of alternative suppliers capable of meeting the stringent performance specifications. Without access to the specific justification documentation (e.g., Justification and Approval document), the precise technical or market reasons remain speculative. However, the nature of advanced defense electronics often involves highly specialized components and systems that are not readily available from multiple vendors, leading to sole-source procurements to ensure national security capabilities are met.

How does the $27 million contract value compare to historical spending on similar countermeasure receiver systems by the Department of Defense?

Comparing the $27 million contract value requires historical data on similar countermeasure receiver systems procured by the Department of Defense. Without access to a comprehensive database of past contracts for comparable systems, a direct benchmark is challenging. However, factors influencing this value would include the system's technological sophistication, the number of units ordered, the duration of the contract (which is over three years), and any associated research, development, or integration costs. If previous procurements of similar systems were significantly lower or higher, it would indicate trends in pricing, technological evolution, or market dynamics. The sole-source nature of this award means direct price comparison with competitive bids is not possible, making historical data even more critical for assessing value.

What are the key performance indicators (KPIs) or metrics used to evaluate the success and effectiveness of the countermeasure receivers delivered under this contract?

The effectiveness of countermeasure receivers is typically evaluated based on their ability to detect, identify, and respond to various threats, such as radar-guided missiles or enemy surveillance systems. Key performance indicators (KPIs) would likely include detection range, accuracy in identifying threat types, response time, reliability (mean time between failures), and the system's ability to operate in diverse and challenging electronic warfare environments. For this specific contract, the Department of Defense would establish acceptance criteria and testing protocols to ensure the delivered systems meet stringent military specifications. Performance would be monitored throughout the contract duration, with potential for contract modifications or incentives tied to achieving or exceeding these KPIs. The firm-fixed-price nature suggests that meeting these defined performance standards is a prerequisite for full payment.

What is L3Harris Technologies' track record with the Department of Defense, particularly concerning contracts of similar size and complexity?

L3Harris Technologies is a major defense contractor with a significant history of supplying various systems and services to the Department of Defense. Their track record generally includes a wide range of capabilities, from communication systems and electronic warfare to sensors and avionics. For contracts of similar size and complexity, L3Harris has a demonstrated capacity to deliver sophisticated defense hardware. However, like any large contractor, their history may include both successful contract completions and instances of performance issues or cost overruns on other programs. A detailed review of their past performance ratings, any contract disputes, or program delays related to similar defense electronics would provide a more nuanced understanding of their reliability for this specific countermeasure receiver contract.

Are there any known risks associated with the technology or supply chain for these countermeasure receivers that could impact delivery or performance?

Risks associated with advanced defense electronics can stem from several areas. Technologically, there's always a risk of obsolescence if the threat landscape evolves rapidly or if the system's capabilities are surpassed by emerging technologies. Supply chain risks are also significant; reliance on specialized components, rare earth materials, or a limited number of sub-tier suppliers can lead to production delays or increased costs. For countermeasure receivers, geopolitical factors affecting component sourcing, cybersecurity vulnerabilities in the system's software, or the contractor's ability to maintain production lines at the required quality standards are potential concerns. The sole-source nature of this award might also concentrate risk with a single provider, making contingency planning crucial.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701

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: $27,040,152

Exercised Options: $27,040,152

Current Obligation: $27,040,152

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $6,773,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRWA120D0011

IDV Type: IDC

Timeline