DoD's $69.2M L3Harris Radio Systems Contract Awarded Without Competition

Contract Overview

Contract Amount: $69,241,904 ($69.2M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2016-09-30

Contract Duration: 371 days

Daily Burn Rate: $186.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROGRAM/EQUIPMENT: HARRIS RADIO SYSTEMS (MULTIBAND {AN/PRC-152A; AN/PRC-117G}, HIGH FREQUENCY (HF), AND DISMOUNT), ANTENNAS, BMS SOFTWARE, DATA TERMINALS, TOUCH TABLETS, FIELD SERVICE REPRESENTATIVE, AND TRAINING FOR INSTALLATION, OPERATION, AND MAINTENANCE

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $69.2 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: PROGRAM/EQUIPMENT: HARRIS RADIO SYSTEMS (MULTIBAND {AN/PRC-152A; AN/PRC-117G}, HIGH FREQUENCY (HF), AND DISMOUNT), ANTENNAS, BMS SOFTWARE, DATA TERMINALS, TOUCH TABLETS, FIELD SERVICE REPRESENTATIVE, AND TRAINING FOR INSTALLATION, OPERATION, AND MAINTENANCE Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Significant investment in communication systems highlights the critical role of reliable battlefield networks. 3. The contract covers a broad range of equipment and services, including radios, antennas, software, and training. 4. Lack of competition may limit opportunities for innovation and cost savings from alternative vendors. 5. Performance context is limited due to the absence of competitive benchmarks. 6. The award to L3Harris Global Communications, Inc. represents a substantial commitment to a single provider for these essential systems.

Value Assessment

Rating: questionable

The contract's value of $69.2 million for Harris radio systems, antennas, software, and training is difficult to benchmark due to its sole-source nature. Without competitive bids, it's challenging to assess if the pricing reflects fair market value or if taxpayers received the best possible deal. The absence of competition suggests potential for higher costs compared to a scenario with multiple bidders vying for the contract. Further analysis would require access to L3Harris's cost breakdowns and comparisons to similar sole-source awards for comparable equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3Harris Global Communications, Inc. was the only vendor considered. The justification for not competing the award is not provided in the data. This lack of competition limits the ability to assess the range of pricing and technical solutions that might have been available from other qualified suppliers. Consequently, the government may not have benefited from the full spectrum of market offerings.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the government's ability to explore potentially more innovative or cost-effective solutions from a wider pool of vendors.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced communication capabilities essential for military operations. Services delivered include the provision of multiband radios (AN/PRC-152A, AN/PRC-117G), HF systems, antennas, BMS software, data terminals, and touch tablets. Field service representatives provide crucial support for installation, operation, and maintenance, ensuring system readiness. Training is included to ensure military personnel can effectively utilize the complex communication equipment. The geographic impact is likely widespread, supporting deployed forces globally. Workforce implications include the need for trained military personnel to operate and maintain the systems, as well as potential reliance on L3Harris technicians for specialized support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of competitive bidding may stifle innovation by not exploring alternative solutions.
Dependence on a single vendor for critical communication systems could pose supply chain risks.

Positive Signals

Provides essential, advanced communication equipment critical for military operations.
Includes comprehensive training and field support, enhancing operational readiness.
L3Harris is a known entity in defense communications, suggesting a level of established capability.

Sector Analysis

The contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector (NAICS 334220). This sector is characterized by the production of communication equipment, including radio and television broadcast transmitters, wireless telecommunications equipment, and related components. The market size for defense communication systems is substantial, driven by ongoing modernization efforts and the need for secure, reliable battlefield networks. This L3Harris contract represents a significant procurement within this specialized segment, focusing on tactical and strategic communication solutions for the military.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. The award to a large prime contractor like L3Harris Global Communications, Inc. suggests that the primary focus was on acquiring specialized technology and services, rather than specifically fostering small business participation through set-asides. This could mean limited direct opportunities for small businesses within this specific contract, although they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements. Accountability measures are inherent in the firm-fixed-price contract type, which shifts some risk to the contractor. Transparency is limited by the sole-source nature of the award, as competitive proposals and detailed justifications for the lack of competition are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Tactical Radio Systems
Military Communications Equipment
Battlefield Management Systems
Defense Communications Procurement
Wireless Communication Manufacturing

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.2 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. PROGRAM/EQUIPMENT: HARRIS RADIO SYSTEMS (MULTIBAND {AN/PRC-152A; AN/PRC-117G}, HIGH FREQUENCY (HF), AND DISMOUNT), ANTENNAS, BMS SOFTWARE, DATA TERMINALS, TOUCH TABLETS, FIELD SERVICE REPRESENTATIVE, AND TRAINING FOR INSTALLATION, OPERATION, AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is L3HARRIS GLOBAL COMMUNICATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $69.2 million.

What is the period of performance?

Start: 2015-09-25. End: 2016-09-30.

What is the track record of L3Harris Global Communications, Inc. in delivering similar radio systems to the Department of Defense?

L3Harris Global Communications, Inc. (and its predecessor entities) has a long-standing history of providing advanced communication systems to the U.S. military. They are a major defense contractor specializing in a wide array of communication, electronic, and cyber solutions. For tactical radios, their AN/PRC-152A and AN/PRC-117G are widely fielded and recognized for their capabilities. The company has consistently secured significant contracts for radio systems, encryption, and related technologies. Their track record generally indicates a strong technical capability and experience in meeting the demanding requirements of military communication, though specific performance metrics for individual contracts would require deeper investigation into contract performance reports and user feedback.

How does the value of this contract compare to similar procurements of multiband radio systems by the DoD?

Direct comparison of this $69.2 million contract's value to similar procurements is challenging due to the sole-source nature of this award and the specific bundle of equipment and services included. Typically, competitive procurements for large quantities of multiband radios might yield lower per-unit costs due to economies of scale and price pressure. However, this contract also includes antennas, BMS software, data terminals, tablets, field service, and training, making it a comprehensive package. Without knowing the exact quantities and specifications of each component, and lacking competitive bids, it's difficult to establish a precise benchmark. Historical data on similar sole-source awards for integrated communication suites would be the most relevant, but such data is not readily available.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with a sole-source award of this magnitude ($69.2 million) include: 1. **Higher Costs:** Without competition, the government may pay a premium compared to what could be achieved through a competitive bidding process. The contractor faces less pressure to offer the lowest possible price. 2. **Limited Innovation:** The absence of multiple bidders can stifle innovation, as there's less incentive for vendors to propose novel or more cost-effective solutions. 3. **Vendor Lock-in:** Relying on a single supplier for critical systems can create dependency, making it difficult and costly to switch vendors in the future, even if better alternatives emerge. 4. **Reduced Transparency:** Sole-source justifications can sometimes obscure the true reasons for not competing, potentially masking inefficiencies or suboptimal decision-making. 5. **Potential for Complacency:** A sole-source contractor might become less responsive or proactive over time due to the lack of competitive threat.

What is the expected program effectiveness given the sole-source award and the nature of the equipment?

The expected program effectiveness hinges on L3Harris's established capabilities and the inherent reliability of the Harris radio systems, which are generally well-regarded in military circles. The inclusion of training and field service representatives suggests a commitment to ensuring the systems are properly operated and maintained, which is crucial for effectiveness. However, the sole-source nature introduces a risk that the 'best' available solution or the most cost-effective configuration might not have been procured. If the selected systems meet the essential operational requirements and are well-supported, effectiveness could be high. Conversely, if the lack of competition led to suboptimal pricing or a less advanced solution than could have been obtained competitively, overall program effectiveness might be compromised in terms of value for money.

How have historical spending patterns for similar communication systems evolved within the DoD?

Historical spending patterns for military communication systems within the DoD have shown a consistent and significant investment in tactical and strategic communication technologies. There's a trend towards increasingly integrated, software-defined, and networked systems that support data transmission alongside voice. Procurement often involves large, multi-year contracts for radios, satellite communications, and network infrastructure. While specific figures fluctuate based on modernization cycles and global security needs, the DoD consistently ranks as a major purchaser of advanced communication equipment. Historically, there have been periods of both competitive bidding for standardized equipment and sole-source awards for highly specialized or proprietary systems, reflecting a mixed approach to procurement strategy depending on perceived urgency and market availability.

What are the implications of this contract for the broader defense communications market?

This contract signifies the continued importance of established prime contractors like L3Harris in supplying critical, integrated communication solutions to the Department of Defense. The sole-source award, while potentially limiting broader market access for competitors on this specific deal, reinforces L3Harris's position as a key player. It highlights the DoD's reliance on vendors capable of providing end-to-end solutions, including hardware, software, and support services. For the broader market, it underscores the demand for advanced tactical radios and network-centric capabilities. It may also signal opportunities for other companies in the supply chain or in adjacent technology areas that can integrate with or complement these L3Harris systems, although direct competition for such large, integrated packages may be limited to a few major defense primes.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: MUSICAL INST/PHONOGRAPH/HOME RADIO

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91CRB15R5040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 1350 JEFFERSON RD, ROCHESTER, NY, 14623

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: $111,678,295

Exercised Options: $69,241,904

Current Obligation: $69,241,904

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline