DoD awards $27.9M for 497 SINCGARS radio systems to L3Harris Technologies
Contract Overview
Contract Amount: $27,900,674 ($27.9M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-03-25
End Date: 2023-12-31
Contract Duration: 1,376 days
Daily Burn Rate: $20.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE GOVERNMENT IS BUYING 497 RT-1478D/ARC-201D(V), SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS) U.S. GOVERNMENT, AIRWORTHINESS APPROVED FOR DOMESTIC USE.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THE GOVERNMENT IS BUYING 497 RT-1478D/ARC-201D(V), SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS) U.S. GOVERNMENT, AIRWORTHINESS APPROVED FOR DOMESTIC USE. Key points: 1. Significant award for essential communication equipment. 2. Sole source award to L3Harris Technologies, a key defense contractor. 3. Potential for higher costs due to lack of competition. 4. Focus on airworthiness and domestic use indicates critical operational need.
Value Assessment
Rating: fair
The total award of $27.9 million for 497 units averages to approximately $56,138 per unit. Without competitive bids, it's difficult to definitively assess if this price is optimal compared to market rates for similar advanced radio systems.
Cost Per Unit: $56,138
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award to L3Harris Technologies. This lack of competition limits price discovery and may result in less favorable pricing for the government.
Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these essential radio systems.
Public Impact
Ensures critical communication capabilities for Army ground and airborne operations. Supports military readiness and operational effectiveness. Potential impact on future procurement strategies if sole-source trends continue.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competitive pricing.
- Lack of transparency in price justification.
- Potential for vendor lock-in.
Positive Signals
- Procurement of essential, airworthiness-approved equipment.
- Supports critical defense communication infrastructure.
Sector Analysis
The defense sector relies heavily on specialized communication equipment like the SINCGARS. Spending in this area is driven by operational requirements and technological advancements, with significant investment often going to established prime contractors.
Small Business Impact
This contract was awarded directly to L3Harris Technologies, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The award was a delivery order under an existing contract. Oversight would focus on contract performance, delivery schedules, and adherence to specifications. The sole-source nature warrants scrutiny regarding justification and fair pricing.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- Limited transparency on price justification.
- No clear indication of small business participation.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to L3HARRIS TECHNOLOGIES, INC.. THE GOVERNMENT IS BUYING 497 RT-1478D/ARC-201D(V), SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS) U.S. GOVERNMENT, AIRWORTHINESS APPROVED FOR DOMESTIC USE.
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 $27.9 million.
What is the period of performance?
Start: 2020-03-25. End: 2023-12-31.
What is the justification for the sole-source award of the SINCGARS radio systems?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. For the SINCGARS, it might be due to existing system integration, specific performance characteristics, or a limited number of qualified manufacturers. Further documentation would be needed to confirm the precise rationale.
How does the lack of competition impact the long-term cost of maintaining and upgrading these radio systems?
A sole-source award can lead to higher long-term costs. Without competitive pressure, the incumbent contractor may face less incentive to reduce prices for sustainment, spare parts, or future upgrades. This can result in the government paying a premium over the system's lifecycle, potentially necessitating a review of the procurement strategy for subsequent phases.
Are there alternative or next-generation radio systems that could offer better value or performance, and why were they not considered?
The decision to procure the RT-1478D/ARC-201D(V) suggests a focus on proven, existing technology, possibly for interoperability or immediate operational needs. The lack of competition implies that alternative systems, even if potentially more advanced or cost-effective, were not evaluated or deemed suitable for this specific procurement. A review of market research and technology assessments would clarify why alternatives were bypassed.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $27,900,674
Exercised Options: $27,900,674
Current Obligation: $27,900,674
Actual Outlays: $6,299,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB16D5004
IDV Type: IDC
Timeline
Start Date: 2020-03-25
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 12:12:00
Last Modified: 2023-10-03
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