DoD Awards $190M Sole Source Contract for Ukraine Communications Radios to L3Harris
Contract Overview
Contract Amount: $189,741,853 ($189.7M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-22
End Date: 2025-09-30
Contract Duration: 1,135 days
Daily Burn Rate: $167.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UKRAINE - DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES FOR THE COUNTRY OF UKRAINE.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $189.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: UKRAINE - DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES FOR THE COUNTRY OF UKRAINE. Key points: 1. Significant sole-source award to L3Harris for critical communications equipment. 2. High value contract underscores urgent need for Ukrainian defense capabilities. 3. Lack of competition raises questions about price discovery and potential overpayment. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar L3Harris contracts or other providers would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a directed sole-source acquisition, meaning competition was not sought. This approach may expedite delivery in urgent situations but limits price negotiation and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to lower prices.
Public Impact
Ensures critical communication capabilities for Ukraine's defense efforts. Supports a key defense contractor, L3Harris, with a significant award. Highlights the ongoing US commitment to supporting Ukraine. Raises concerns about the long-term cost-effectiveness of sole-source procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for inflated pricing without competitive bidding
- Urgency may have bypassed standard procurement processes
Positive Signals
- Provides essential equipment to an ally
- Supports national security objectives
- Firm fixed price contract limits cost overruns
Sector Analysis
This contract falls under 'Other Communications Equipment Manufacturing,' a sector vital for modern defense operations. The spending benchmark for this category is difficult to ascertain without more specific data on similar international aid packages.
Small Business Impact
This award went to L3Harris Global Communications, Inc., a large business. There is no indication that small businesses were involved in this specific sole-source acquisition, which is common for highly specialized or urgent defense needs.
Oversight & Accountability
The sole-source nature of this acquisition warrants careful oversight to ensure the funds are used efficiently and effectively. The Department of the Army's justification for bypassing competition should be thoroughly documented and reviewed.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Urgency may have bypassed standard due diligence
- Dependence on a single supplier for critical equipment
Tags
other-communications-equipment-manufactu, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $189.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. UKRAINE - DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES FOR THE COUNTRY OF UKRAINE.
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 $189.7 million.
What is the period of performance?
Start: 2022-08-22. End: 2025-09-30.
What is the justification for the sole-source award, and were alternative competitive options considered?
The justification for a sole-source award typically centers on urgency, unique capabilities, or lack of viable alternatives. For this contract, the ongoing conflict in Ukraine likely necessitated rapid acquisition of specific communication systems. However, a review of the procurement file would confirm if L3Harris's products were truly the only option or if the urgency precluded a competitive process.
How does the per-unit cost compare to similar L3Harris products or competitor offerings?
Without access to specific product details and competitive pricing data, a direct per-unit cost comparison is challenging. However, the absence of competition suggests that the government may not have achieved the most favorable pricing. Benchmarking against historical L3Harris sales or similar systems from other manufacturers would be crucial for assessing value.
What is the long-term strategic value of equipping Ukraine with these specific L3Harris radios?
Equipping Ukraine with reliable communication systems like those from L3Harris is strategically vital for their defense operations, command and control, and overall effectiveness against aggression. These radios likely offer specific features or interoperability crucial for the Ukrainian forces, contributing to their ability to coordinate and execute missions effectively.
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: $189,741,853
Exercised Options: $189,741,853
Current Obligation: $189,741,853
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB21D5003
IDV Type: IDC
Timeline
Start Date: 2022-08-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2024-11-27
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