DoD Awards $46.17M Sole Source Contract for Harris Radios to Ukraine via FMS
Contract Overview
Contract Amount: $46,167,440 ($46.2M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-08-30
End Date: 2023-03-31
Contract Duration: 1,674 days
Daily Burn Rate: $27.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: BJ-B-UBC, ARP: EX18039.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $46.2 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: BJ-B-UBC, ARP: EX18039. Key points: 1. Contract awarded to L3Harris Global Communications, Inc. for radios and services. 2. Procurement is a sole-source, country-directed action for Ukraine. 3. Significant delivery period from August 2018 to March 2023. 4. NAICS code 334290 indicates 'Other Communications Equipment Manufacturing'.
Value Assessment
Rating: questionable
Pricing is not available for comparison, making it difficult to assess value. The sole-source nature limits competitive benchmarking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source, country-directed procurement, meaning competition was not sought. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Without competitive bidding, taxpayers may be paying a premium for these radios and services.
Public Impact
Supports critical communication needs for Ukraine. Procurement method bypasses standard competitive processes. Ensures delivery of specialized equipment through a trusted vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited price transparency
- Sole-source justification unclear
Positive Signals
- Supports critical national security interests
- Directly aids an allied nation
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this sector can vary widely based on technological advancements and geopolitical needs.
Small Business Impact
The contract was awarded to L3Harris Global Communications, Inc., a large business. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
As a sole-source, country-directed procurement, oversight may focus on ensuring the necessity and fair pricing, though competition is absent.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Limited transparency on price justification.
- Potential for inflated costs due to no competition.
- Foreign Military Sale (FMS) process may have different oversight.
Tags
other-communications-equipment-manufactu, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.2 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: BJ-B-UBC, ARP: EX18039.
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $46.2 million.
What is the period of performance?
Start: 2018-08-30. End: 2023-03-31.
What is the justification for the sole-source award and why was competition not feasible?
The justification for a sole-source award, especially in a country-directed foreign military sale, typically centers on unique capabilities, urgent need, or lack of alternative sources. Without specific documentation, it's difficult to ascertain the precise reasons. However, the urgency and specific requirements for supporting Ukraine likely influenced this decision, bypassing standard competitive processes to ensure timely delivery of critical equipment.
How was the price determined without a competitive bidding process?
In sole-source procurements, pricing is often determined through negotiation, historical pricing data, or by referencing commercial price lists. For foreign military sales, pricing can also be influenced by government-to-government agreements and established pricing mechanisms. The absence of competition means there's no market-driven price discovery, making it crucial to verify the reasonableness of the negotiated price against benchmarks or cost analyses.
What is the long-term strategic value of this sole-source procurement for US foreign policy objectives?
This procurement directly supports US foreign policy by providing essential communication tools to Ukraine, bolstering its defense capabilities and resilience. By ensuring L3Harris radios are supplied, the US maintains influence over critical infrastructure and interoperability with allied forces. This action signals continued US commitment to Ukraine's security and stability, aligning with broader geopolitical objectives in the region.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other 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: 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: $46,167,440
Exercised Options: $46,167,440
Current Obligation: $46,167,440
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB16D5006
IDV Type: IDC
Timeline
Start Date: 2018-08-30
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 12:03:00
Last Modified: 2022-01-31
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