DoD Awards $47.4M Sole Source Contract for Harris Radios to Ukraine Amidst Conflict
Contract Overview
Contract Amount: $47,362,620 ($47.4M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-25
End Date: 2021-06-30
Contract Duration: 644 days
Daily Burn Rate: $73.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SOLE SOURCE REQUIREMENT FOR HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: QG-B-UBA, ARP: EX19066.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $47.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: SOLE SOURCE REQUIREMENT FOR HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: QG-B-UBA, ARP: EX19066. Key points: 1. Significant sole-source award for critical communication equipment to Ukraine. 2. L3Harris is the sole provider, raising concerns about competition and pricing. 3. Contract duration of 644 days suggests ongoing support needs. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $47.4M for radios and services is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar sole-source procurements or if it reflects premium pricing due to the urgent nature and sole-source justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This approach is often used in urgent situations or when only one vendor can meet specific requirements, but it limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
Ensures critical communication capabilities for Ukraine's defense efforts. Highlights reliance on a single vendor for specialized military equipment. Potential for increased costs due to lack of competitive pressure. Supports U.S. foreign military sales objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for fair value assessment.
- Urgent need may have driven higher costs.
Positive Signals
- Provides essential equipment to an ally.
- Supports national security interests.
Sector Analysis
This contract falls under 'Other Communications Equipment Manufacturing,' a sector vital for national defense and international security. Spending benchmarks in this niche area are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The sole-source nature and the specialized equipment likely preclude small business participation in this specific procurement.
Oversight & Accountability
The sole-source justification requires rigorous review by oversight bodies to ensure it was truly necessary and that the government obtained the best possible terms under the circumstances. Transparency in pricing and justification is key.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on price justification
- No small business participation
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 $47.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. SOLE SOURCE REQUIREMENT FOR HARRIS RADIOS AND SERVICES FOR THE COUNTRY OF UKRAINE; FMS: QG-B-UBA, ARP: EX19066.
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 $47.4 million.
What is the period of performance?
Start: 2019-09-25. End: 2021-06-30.
What specific technical requirements or urgent operational needs necessitated a sole-source award to L3Harris for Ukraine's radios and services?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or extreme urgency where only one vendor can meet the critical requirements within the necessary timeframe. For Ukraine, this likely relates to interoperability with existing systems, specialized encryption, or immediate battlefield needs that preclude a lengthy competitive process.
How was the 'fair and reasonable' price determined for this sole-source contract, given the absence of competition?
Price reasonableness for sole-source contracts is often determined through comparison with previous contracts for similar items, catalog prices, independent government cost estimates, or data from other agencies. However, without competitive bids, the government's ability to negotiate the lowest possible price is inherently limited, making robust price analysis crucial.
What is the long-term strategy for ensuring competitive sourcing of communication equipment for Ukraine beyond this sole-source award?
The long-term strategy likely involves assessing whether future needs can be met through competitive procurements, potentially by breaking down requirements into smaller lots or encouraging new market entrants. Alternatively, if L3Harris's technology remains uniquely critical, future sole-source awards would require strong, updated justifications and thorough price negotiations.
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: $47,362,620
Exercised Options: $47,362,620
Current Obligation: $47,362,620
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: 2019-09-25
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2021-12-12
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