DoD Awards $27.9M Sole Source Contract for Harris Radios to Poland

Contract Overview

Contract Amount: $27,918,938 ($27.9M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-22

End Date: 2025-06-22

Contract Duration: 1,004 days

Daily Burn Rate: $27.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATION RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATION RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND. Key points: 1. Significant investment in communication equipment for a NATO ally. 2. Sole-source nature raises questions about price competitiveness. 3. Potential for long-term reliance on a single vendor. 4. Focus on specialized communication technology within the defense sector.

Value Assessment

Rating: questionable

The contract value of $27.9 million for communication radios and accessories is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar government or commercial procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This acquisition is sole-source, meaning it was not open to competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The sole-source nature of this contract prevents competitive pricing, potentially leading to increased taxpayer expenditure for these essential communication systems.

Public Impact

Enhances Poland's military communication capabilities, strengthening NATO interoperability. Supports a key U.S. defense contractor, L3Harris. Procurement of specialized communication equipment highlights evolving defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source justification
Lack of competition
Potential for price escalation

Positive Signals

Supports allied defense capabilities
Acquisition of critical communication technology

Sector Analysis

This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area is crucial for national security and international partnerships, but competitive sourcing is generally preferred to ensure value.

Small Business Impact

The contract was awarded to L3Harris Global Communications, Inc., a large business. There is no indication that small businesses were involved in this specific sole-source acquisition.

Oversight & Accountability

The sole-source nature of this award warrants careful review by oversight bodies to ensure the justification is sound and that taxpayer funds are being used efficiently.

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 overpricing
Limited transparency on justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATION RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND.

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 $27.9 million.

What is the period of performance?

Start: 2022-09-22. End: 2025-06-22.

What is the specific justification for this sole-source award, and has it been thoroughly vetted?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific justification needs to be publicly available and rigorously reviewed by the Department of Defense to ensure it meets the criteria for foregoing competition and that the pricing is still reasonable.

What are the long-term implications of relying on a sole-source provider for critical communication equipment?

Long-term reliance on a sole-source provider can lead to vendor lock-in, reduced negotiation leverage, and potential price increases over time. It also limits opportunities for innovation from other potential suppliers and could create supply chain vulnerabilities if the sole provider faces issues.

How does the cost of these radios compare to similar systems procured competitively by other allied nations?

Benchmarking the cost against similar systems procured competitively by other allied nations is crucial for assessing value. Without this comparative data, it's challenging to determine if the $27.9 million represents a fair price, especially given the absence of a competitive bidding process.

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: $27,918,938

Exercised Options: $27,918,938

Current Obligation: $27,918,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline