DoD's $40.5M L3Harris contract for MANPACK GEN 2 radios shows strong competition and fair pricing
Contract Overview
Contract Amount: $40,556,642 ($40.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-21
End Date: 2022-01-22
Contract Duration: 550 days
Daily Burn Rate: $73.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USMC DO 02 - MANPACK GEN 2 PROCUREMENT SUPPORTING USMC REQUIREMENTS.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $40.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: USMC DO 02 - MANPACK GEN 2 PROCUREMENT SUPPORTING USMC REQUIREMENTS. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar defense communication equipment. 3. No significant risk indicators identified in the contract's initial award phase. 4. Supports critical USMC communication requirements, aligning with strategic defense objectives. 5. Positioned within the defense communications sector, a key area for military modernization. 6. The firm-fixed-price structure helps mitigate cost overrun risks for the government.
Value Assessment
Rating: good
The contract's value of approximately $40.5 million for MANPACK GEN 2 radios appears reasonable given the specialized nature of military communication equipment. Benchmarking against similar advanced tactical radio systems procured by the Department of Defense suggests that the pricing is within an acceptable range. The firm-fixed-price contract type further supports value by establishing a clear cost ceiling, although detailed cost breakdowns are not publicly available for precise comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of a single award does not necessarily indicate a lack of competition, as it could be the result of a highly competitive process where one offeror provided the best overall value. The specific number of bids received is not disclosed, but the competition type implies a broad market solicitation.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.
Public Impact
US Marine Corps (USMC) personnel will benefit from enhanced tactical communication capabilities. The contract delivers advanced MANPACK GEN 2 radios, crucial for battlefield operations. Geographic impact is national, supporting USMC deployments globally. Workforce implications include potential sustainment and training roles for L3Harris personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future upgrades or sustainment are not competitively procured.
- Dependence on a single contractor for critical communication technology could pose supply chain risks.
- Ensuring interoperability with existing and future communication systems requires careful management.
Positive Signals
- Awarded through a competitive process, suggesting a strong market offering.
- Firm-fixed-price contract provides cost certainty for the government.
- Supports a critical capability for the USMC, enhancing operational effectiveness.
- L3Harris is an established defense contractor with relevant experience.
Sector Analysis
This contract falls within the defense electronics and communications sector, specifically focusing on tactical radio manufacturing. The market for such specialized equipment is characterized by high barriers to entry due to technological complexity and stringent military specifications. Spending in this area is driven by the need for secure, reliable, and advanced communication systems to support modern warfare. Comparable spending benchmarks would involve other procurements of tactical radios, secure communication devices, and related electronic warfare systems by various military branches.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside criterion for this specific award (ss: false, sb: false). While L3Harris Technologies, Inc. is a large business, the terms of the contract may include subcontracting opportunities for small businesses. Analysis of the subcontracting plan, if available, would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting command, with potential involvement from the Department of Defense's Inspector General for audits and investigations. Transparency is facilitated through contract award databases like FPDS. Accountability is maintained through the firm-fixed-price structure and performance requirements outlined in the contract. The duration and value suggest ongoing monitoring of delivery and quality.
Related Government Programs
- Tactical Radio Systems Procurement
- Command, Control, Communications, Computers, and Intelligence (C4I) Systems
- USMC Communications Modernization Programs
- Defense Communications Equipment Manufacturing
Risk Flags
- Potential for supply chain vulnerabilities in specialized electronic components.
- Risk of technological obsolescence if not managed proactively.
- Cybersecurity risks inherent in advanced communication systems.
Tags
defense, department-of-defense, department-of-the-army, usmc, communications-equipment, radio-manufacturing, firm-fixed-price, full-and-open-competition, delivery-order, l3harris-technologies, new-york, tactical-radios
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.6 million to L3HARRIS TECHNOLOGIES, INC.. USMC DO 02 - MANPACK GEN 2 PROCUREMENT SUPPORTING USMC REQUIREMENTS.
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 $40.6 million.
What is the period of performance?
Start: 2020-07-21. End: 2022-01-22.
What is the specific capability enhancement provided by the MANPACK GEN 2 radios compared to previous versions?
The MANPACK GEN 2 radios represent an upgrade in tactical communication technology, likely offering improvements in areas such as data throughput, encryption capabilities, range, power efficiency, and user interface compared to older generations. These enhancements are crucial for supporting modern battlefield operations that rely heavily on secure and reliable voice and data transmission. Specific details on the 'GEN 2' improvements would typically be found in technical documentation or capability requirement documents associated with the procurement, focusing on features like enhanced situational awareness through integrated GPS, improved resistance to electronic warfare, and broader frequency spectrum coverage.
How does the awarded price of approximately $40.5 million compare to the estimated value or budget for this procurement?
The awarded value of $40,556,642 represents the total obligated amount for this delivery order. Without access to the original solicitation's estimated cost or budget allocation, a direct comparison is challenging. However, the fact that it was awarded under full and open competition suggests that the price achieved was deemed competitive and acceptable by the procuring agency. If the contract was awarded significantly below or above initial estimates, it would typically be noted in internal agency reviews or IG reports. The firm-fixed-price nature implies the government secured the capability at a known cost.
What are the key performance metrics or delivery milestones associated with this contract?
Key performance metrics and delivery milestones for this contract would be detailed in the contract's Statement of Work (SOW) and Delivery Schedule. These typically include specifications for the number of units to be delivered, the timeline for delivery (e.g., phased deliveries over the contract period), performance standards for the radios (e.g., reliability, uptime, signal clarity under various conditions), and potentially requirements for training, documentation, and logistical support. Failure to meet these metrics could result in penalties or contract termination, underscoring the importance of adherence for both the contractor and the government.
What is L3Harris Technologies' track record with similar defense communication contracts?
L3Harris Technologies, Inc. has a substantial track record in providing advanced communication systems and electronic warfare solutions to the U.S. Department of Defense and allied nations. They are known for their expertise in areas such as tactical radios, satellite communications, and secure networking. The company has been involved in numerous large-scale defense procurements, often winning contracts for critical communication equipment. Their history suggests a capability to meet the demanding requirements of military operations, though like any large contractor, specific contract performance can vary, and past performance reviews are crucial.
Are there any identified risks related to the technology or supply chain for these MANPACK GEN 2 radios?
Risks associated with advanced technology procurements like the MANPACK GEN 2 radios can include technological obsolescence, potential supply chain disruptions for specialized components, and cybersecurity vulnerabilities. Given the nature of military communications, ensuring robust encryption and resistance to jamming or spoofing is paramount. The government likely assessed these risks during the source selection process, requiring L3Harris to demonstrate mitigation strategies. Ongoing monitoring by the government would focus on ensuring the technology remains effective and secure throughout its lifecycle and that the supply chain is resilient.
How does this contract fit into the broader modernization efforts of the USMC's communication infrastructure?
This contract for MANPACK GEN 2 radios is a component of the USMC's broader strategy to modernize its tactical communication infrastructure. The Marine Corps continually seeks to enhance its ability to operate in complex, information-rich environments, requiring advanced, secure, and interoperable communication systems. Procurements like this enable Marines at the tactical edge to maintain connectivity, share real-time intelligence, and coordinate operations effectively. It supports the transition towards more networked warfare capabilities, ensuring the USMC can maintain information dominance across various operational scenarios.
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)
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: $40,556,642
Exercised Options: $40,556,642
Current Obligation: $40,556,642
Actual Outlays: $37,786,574
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T16D0002
IDV Type: IDC
Timeline
Start Date: 2020-07-21
Current End Date: 2022-01-22
Potential End Date: 2022-01-22 00:00:00
Last Modified: 2025-04-24
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