DoD Awards $53.7M Sole Source Contract for Radio Supplies to L3Harris Global Communications

Contract Overview

Contract Amount: $53,728,643 ($53.7M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-07

End Date: 2021-06-21

Contract Duration: 776 days

Daily Burn Rate: $69.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOLE SOURCE PROCUREMENT FOR BELGIUM UNDER FMS CASE BE-B-WDQ; AE19012 FOR RADIO SUPPLIES AND SERVICES.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: SOLE SOURCE PROCUREMENT FOR BELGIUM UNDER FMS CASE BE-B-WDQ; AE19012 FOR RADIO SUPPLIES AND SERVICES. Key points: 1. Contract awarded to L3Harris Global Communications, Inc. for radio supplies and services. 2. Procurement is sole source under FMS Case BE-B-WDQ. 3. Contract duration is 776 days. 4. The contract is for Other Communications Equipment Manufacturing. 5. Awarded by the Department of the Army.

Value Assessment

Rating: questionable

The contract value is $53.7 million. Without competitive bidding, it's difficult to assess if this price is optimal. Benchmarking against similar sole-source procurements or commercial equivalents is necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This is a sole-source procurement, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition in this $53.7 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Military readiness may be impacted if essential radio supplies are not procured at the best possible price. Taxpayers may be bearing a higher cost due to the absence of competitive bidding. The specific need for sole-source procurement should be transparently justified to ensure accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source justification missing
Lack of competition
Potential for overpricing

Positive Signals

Supports military operations via FMS
Contract awarded to established vendor

Sector Analysis

This contract falls under 'Other Communications Equipment Manufacturing.' Spending in this sector can vary widely based on technological advancements and defense needs. Benchmarking against similar sole-source awards for specialized communication equipment is crucial.

Small Business Impact

There is no indication that small businesses were involved in this sole-source procurement. Opportunities for small business participation were likely missed.

Oversight & Accountability

Oversight is critical for sole-source contracts to ensure fair pricing and necessity. The Department of the Army's justification for this sole-source award requires scrutiny to ensure accountability and prevent potential waste.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole Source
Lack of Competition
Potential for Overpricing
No Small Business Participation
FMS Case - International Implications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. SOLE SOURCE PROCUREMENT FOR BELGIUM UNDER FMS CASE BE-B-WDQ; AE19012 FOR RADIO SUPPLIES AND SERVICES.

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 $53.7 million.

What is the period of performance?

Start: 2019-05-07. End: 2021-06-21.

What is the specific justification for awarding this contract on a sole-source basis, and has it been adequately documented?

The provided data does not include the justification for this sole-source award. A thorough review of the contract file is necessary to determine if a valid justification, such as unique capabilities or urgent need, exists and has been properly documented according to federal acquisition regulations. Without this, it's difficult to assess the legitimacy of bypassing competition.

How does the unit cost of these radio supplies and services compare to commercially available alternatives or similar government contracts?

Benchmarking the per-unit cost is essential for assessing value, especially in sole-source procurements. Without access to specific line-item details and pricing data, a direct comparison is impossible. However, the absence of competition suggests a higher likelihood of inflated costs compared to a competitive environment. Further analysis would require detailed pricing information.

What is the long-term strategic impact of relying on a sole-source provider for these critical radio supplies and services?

Sole-source reliance can create dependency and limit future flexibility. It may stifle innovation from other potential vendors and could lead to price escalations over time. While ensuring immediate supply, it warrants strategic consideration for future procurements to foster competition and explore alternative solutions to maintain cost-effectiveness and technological advancement.

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 (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: $53,728,643

Exercised Options: $53,728,643

Current Obligation: $53,728,643

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