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: ManufacturingCommunications Equipment ManufacturingRadio 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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