Department of the Army awards $62M for manpack radios and installation kits, highlighting a need for advanced communication equipment

Contract Overview

Contract Amount: $62,065,368 ($62.1M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-03-04

End Date: 2012-03-05

Contract Duration: 367 days

Daily Burn Rate: $169.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE HF MANPACK RADIO , 150W INSTILATION KIT AND ANCILLARY EQUIPTMENT, GSA HARRIS CORP

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $62.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PURCHASE HF MANPACK RADIO , 150W INSTILATION KIT AND ANCILLARY EQUIPTMENT, GSA HARRIS CORP Key points: 1. The contract value of $62 million indicates a significant investment in tactical communication capabilities. 2. Full and open competition suggests a robust market for these specialized radio systems. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The relatively short duration of 367 days may point to a specific operational need or a phased deployment. 5. The award to L3Harris Technologies, Inc. positions them as a key supplier for this type of military hardware. 6. The North American Industry Classification System (NAICS) code 334220 confirms the focus on wireless communications equipment manufacturing.

Value Assessment

Rating: good

The contract value of $62,065,368 for manpack radios and ancillary equipment appears reasonable given the specialized nature of military-grade communication systems. Benchmarking against similar large-scale procurements for tactical radio systems suggests that this price falls within expected ranges. The firm fixed-price contract type provides cost certainty, which is a positive indicator for value. Without specific per-unit cost data or detailed technical specifications, a precise value-for-money assessment is challenging, but the competitive nature of the award lends confidence to the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The specific number of bidders is not provided, but the designation suggests a healthy competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The government likely benefited from a range of technical solutions and pricing proposals.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by fostering a competitive marketplace. This ensures that the government is not overpaying for essential equipment and services.

Public Impact

The primary beneficiaries are Department of the Army personnel who will receive enhanced tactical communication capabilities. The contract delivers manpack radios, installation kits, and ancillary equipment essential for battlefield communications. The geographic impact is likely widespread, supporting Army operations across various theaters. Workforce implications may include specialized manufacturing roles at L3Harris Technologies and training for military personnel on the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence if technology rapidly advances beyond the capabilities of this radio system.
Dependence on a single contractor for a critical piece of communication infrastructure.
Integration challenges with existing communication networks could arise if not thoroughly planned.

Positive Signals

Awarded through full and open competition, suggesting a competitive price and potentially high quality.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
L3Harris Technologies is a known entity in defense communications, implying a degree of reliability and expertise.

Sector Analysis

This contract falls within the broader defense electronics sector, specifically focusing on tactical radio and wireless communications equipment. The market for such specialized military hardware is characterized by high barriers to entry due to stringent performance requirements, security certifications, and long development cycles. Spending in this area is driven by the need for secure, reliable, and interoperable communication systems for modern warfare. Comparable spending benchmarks would involve other large-scale procurements of tactical radios, encrypted communication devices, and associated support equipment for various military branches.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the specialized nature and likely large scale of this procurement, it is possible that L3Harris Technologies, Inc. may engage small businesses for specific components or services, but this is not explicitly stated. The absence of set-aside information suggests the primary focus was on obtaining the best overall solution through full and open competition.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering specified goods within the agreed-upon price. Transparency is facilitated by the contract award itself, which is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Tactical Radio Systems Procurement
Military Communications Equipment
Department of Defense C4ISR Programs
Manpack Radio Systems
Wireless Communications Manufacturing

Risk Flags

Potential for obsolescence
Supply chain risks for electronic components
Integration with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.1 million to L3HARRIS TECHNOLOGIES, INC.. PURCHASE HF MANPACK RADIO , 150W INSTILATION KIT AND ANCILLARY EQUIPTMENT, GSA HARRIS CORP

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 Army).

What is the total obligated amount?

The obligated amount is $62.1 million.

What is the period of performance?

Start: 2011-03-04. End: 2012-03-05.

What is the specific technical capability and intended operational use of the 'PURCHASE HF MANPACK RADIO, 150W INSTILATION KIT AND ANCILLARY EQUIPTMENT'?

The 'PURCHASE HF MANPACK RADIO, 150W INSTILATION KIT AND ANCILLARY EQUIPTMENT' contract likely refers to High Frequency (HF) manpack radios, which are portable, soldier-carried radio systems designed for long-range voice and data communication in tactical environments. The 150W rating suggests a powerful transmitter, capable of establishing reliable links over considerable distances, often used in areas where satellite or line-of-sight communications are unavailable or unreliable. The 'installation kit' implies that these radios are designed to be integrated into vehicles or fixed positions, enhancing their power output, antenna performance, or operational flexibility beyond basic manpack use. Ancillary equipment would encompass essential accessories such as power supplies, antennas, microphones, headsets, data modems, and carrying cases, all crucial for the effective deployment and operation of the radio system in diverse field conditions. These systems are vital for command and control, intelligence gathering, and logistical coordination during military operations.

How does the $62 million contract value compare to historical spending on similar manpack radio systems by the Department of the Army?

The $62 million contract value for HF manpack radios and associated equipment represents a significant, but not unprecedented, investment for the Department of the Army. Historical spending on tactical communication systems, including manpack radios, can fluctuate based on modernization cycles, operational tempo, and specific technological advancements. Large-scale procurements of manpack radios often range from tens to hundreds of millions of dollars, depending on the quantity, technological sophistication (e.g., encryption, digital modes, frequency hopping), and the inclusion of ancillary equipment and support services. For instance, previous awards for similar manpack radio systems might have spanned several years and involved substantial funding to equip large formations. Without direct comparative data for identical systems, this $62 million award appears to be a substantial, focused investment likely aimed at equipping a specific unit or fulfilling a critical operational requirement for advanced, long-range tactical communication capabilities.

What are the primary risks associated with procuring communication equipment like this, and how might they be mitigated?

Primary risks in procuring communication equipment include technological obsolescence, interoperability issues, supply chain disruptions, and contractor performance. Technological obsolescence is a significant concern, as advancements in radio technology can quickly render existing systems outdated. This can be mitigated by including provisions for future upgrades, ensuring modular designs, and conducting thorough market research to select systems with a reasonable technology lifecycle. Interoperability risks arise if the new radios cannot seamlessly communicate with existing military networks or allied forces' equipment. Mitigation involves rigorous testing, adherence to international standards (e.g., STANAGs), and clear technical requirements in the contract. Supply chain disruptions, particularly for specialized electronic components, can delay delivery. Mitigation strategies include diversifying suppliers where possible, requiring contractors to maintain adequate inventory, and building flexibility into delivery schedules. Finally, contractor performance risks, such as delays or quality issues, are managed through careful contractor selection, performance monitoring, clear contract terms, and potential penalties for non-compliance.

Given the 'full and open competition' designation, what does this imply about the market landscape for HF manpack radios?

The designation of 'full and open competition' for this $62 million contract implies a healthy and accessible market for High Frequency (HF) manpack radios and related equipment. It suggests that multiple manufacturers possess the capability, certifications, and willingness to compete for Department of the Army contracts of this magnitude. This indicates that the technology is not monopolized by a single entity and that there are likely several established players, as well as potentially emerging ones, capable of meeting the stringent military requirements. The competitive environment likely pressured bidders to offer competitive pricing and innovative solutions to secure the award. Furthermore, it suggests that the government's requirements were defined in a way that allowed a broad range of potential offerors to understand and respond to the solicitation, rather than being overly restrictive or tailored to a specific proprietary solution.

What is the significance of the 'firm fixed price' contract type for this procurement?

The 'firm fixed price' (FFP) contract type is highly significant for this $62 million procurement of manpack radios and ancillary equipment. FFP contracts establish a ceiling price that the contractor must not exceed, regardless of any cost overruns incurred during performance. This places the primary risk of cost overruns on the contractor, incentivizing them to manage their costs efficiently and accurately estimate their expenses. For the government, FFP provides the highest degree of cost certainty, making budgeting and financial planning more predictable. It is generally preferred for procurements where the scope of work is well-defined and the risks are manageable. In the context of acquiring standardized or well-understood equipment like radios, FFP is a common and effective choice, ensuring that the government pays a predetermined price for the specified goods, thereby protecting taxpayer funds from unexpected cost increases.

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

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: $62,065,368

Exercised Options: $62,065,368

Current Obligation: $62,065,368

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0163N

IDV Type: FSS

Timeline