L3Harris Technologies awarded $53.75M for Leader Radio Program production, supporting critical Army communications

Contract Overview

Contract Amount: $53,750,168 ($53.8M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-11-12

End Date: 2026-05-01

Contract Duration: 1,996 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $53.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS Key points: 1. Contract value represents initial production orders, with potential for future growth. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type aims to control costs and manage contractor risk. 4. Long contract duration (1996 days) indicates a sustained need for the product. 5. Awarded by the Department of the Army, highlighting its importance for ground forces. 6. The contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.

Value Assessment

Rating: good

The contract value of $53.75 million for initial production appears reasonable given the scope of supporting a critical ACAT IC program. Benchmarking against similar defense production contracts for advanced communication systems is necessary for a definitive value assessment. The firm fixed-price structure suggests an effort to ensure cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The presence of multiple bidders suggests that the market for this type of radio equipment is sufficiently robust.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of suppliers to offer their best pricing.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the Leader Radio Program for enhanced communication capabilities. The contract delivers essential radio equipment for command, control, and communications (C3T) systems. The geographic impact is primarily within the operational theaters where Army ground forces are deployed. Workforce implications include skilled manufacturing and engineering roles at L3Harris Technologies and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated.
Risk of obsolescence if technology rapidly advances beyond the capabilities of this radio system.
Dependence on a single prime contractor for critical production and sustainment.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Award supports a critical ACAT IC program, indicating high priority and strategic importance.
Long-term contract duration allows for stable production and potential for economies of scale.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, specifically focusing on advanced radio and wireless communication equipment. The market for such systems 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 interoperable communication systems for modern warfare, with significant government investment in maintaining technological superiority.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this specific award (ss: false, sb: false). However, L3Harris Technologies, as a large prime contractor, may engage small businesses for subcontracting opportunities to fulfill specialized components or services. The extent of small business involvement will depend on L3Harris's subcontracting plan and the availability of qualified small businesses in the supply chain.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment. Transparency is facilitated through contract award databases, though detailed production metrics may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Radio Systems
Command, Control, Communications, Computers, and Intelligence (C4I) Systems
Defense Communications Equipment
Acquisition Category (ACAT) Programs

Risk Flags

Potential for technological obsolescence
Supply chain vulnerability
Cybersecurity risks
Integration complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.8 million to L3HARRIS TECHNOLOGIES, INC.. LEADER RADIO PROGRAM LOW RATE INITIAL PRODUCTION 3 ORDER AWARD IN SUPPORT OF ACAT IC PEO-C3T/PM-TR/PDM-HMS

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 $53.8 million.

What is the period of performance?

Start: 2020-11-12. End: 2026-05-01.

What is the historical spending trend for the Leader Radio Program or similar systems by the Department of the Army?

Analyzing historical spending for the Leader Radio Program requires access to detailed program budget data over several fiscal years. However, general trends in defense communications spending show consistent investment in modernizing tactical radio systems to meet evolving battlefield demands. The Department of the Army, in particular, has prioritized programs like the Leader Radio Program to enhance soldier survivability and operational effectiveness through improved situational awareness and secure communication. Past spending on similar programs often involves multi-year procurement contracts, with initial production orders followed by subsequent orders based on operational needs and funding availability. Without specific historical data for this program, it's difficult to provide precise figures, but the overall defense budget allocation for C3T systems suggests a sustained and significant financial commitment.

How does the per-unit cost of the radios under this contract compare to industry benchmarks or previous procurements?

Determining the precise per-unit cost requires dividing the total contract value by the number of units procured, which is not explicitly provided in the award data. However, the contract type (Firm Fixed Price) suggests that the government has negotiated a set price per unit or for a defined production lot. To benchmark this, one would need to compare the estimated per-unit cost against similar tactical radio systems procured by the DoD or allied nations. Factors influencing per-unit cost include technological sophistication, production volume, component costs, and R&D amortization. Given the 'ACAT IC' designation, this implies a major defense system, likely involving advanced features and potentially higher per-unit costs compared to simpler commercial radios. A detailed analysis would involve comparing specifications and procurement quantities with publicly available data on comparable systems.

What is L3Harris Technologies' track record with similar defense communication contracts?

L3Harris Technologies has a substantial and generally positive track record in delivering complex defense communication systems and electronic warfare solutions to the U.S. military and international partners. The company has been a significant player in various tactical radio programs, including those for ground forces. Their experience spans research, development, production, and sustainment of secure, interoperable communication platforms. Past performance reviews and contract awards databases often highlight their ability to meet stringent technical requirements and delivery schedules for programs of similar scale and complexity. While specific contract performance details are often sensitive, L3Harris's consistent presence as a prime contractor on major defense programs suggests a reliable capability in this domain.

What are the key performance indicators (KPIs) used to measure the success of the Leader Radio Program?

Key Performance Indicators (KPIs) for the Leader Radio Program would likely focus on technical performance, reliability, interoperability, and delivery adherence. Technical KPIs could include metrics such as signal clarity, range, data throughput, encryption strength, and resistance to jamming or interference. Reliability KPIs might involve Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR). Interoperability KPIs would ensure seamless communication with existing and future military networks and systems. Delivery KPIs would track adherence to production schedules and contract milestones. Furthermore, user feedback from soldiers in operational environments would be crucial for assessing practical effectiveness and user satisfaction, indirectly contributing to program success metrics.

Are there any identified risks associated with the production or deployment of this radio system?

Potential risks associated with the Leader Radio Program include technological obsolescence, as the pace of innovation in wireless communications is rapid, potentially rendering the system outdated before its planned lifecycle end. Supply chain disruptions for critical components could impact production timelines and costs. Cybersecurity vulnerabilities are also a significant concern for any modern communication system, requiring robust defenses against potential threats. Furthermore, integration challenges with existing military networks and platforms could arise, necessitating extensive testing and potential modifications. Finally, the program's reliance on specific spectrum allocations could be subject to regulatory changes or interference from other users.

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: 2

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: $53,750,168

Exercised Options: $53,750,168

Current Obligation: $53,750,168

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $21,043,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T15D0016

IDV Type: IDC

Timeline