DoD awards $114M sole-source Harris radios to Ukraine via L3Harris Global Communications
Contract Overview
Contract Amount: $114,286,512 ($114.3M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-05-30
End Date: 2024-10-31
Contract Duration: 520 days
Daily Burn Rate: $219.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS, ACCESSORIES 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 $114.3 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS, ACCESSORIES FOR THE COUNTRY OF UKRAINE. Key points: 1. Significant investment in critical communication equipment for Ukraine. 2. Sole-source award limits competitive pricing and potential cost savings. 3. High value contract for specialized defense communication technology. 4. Focus on immediate delivery needs for ongoing conflict support.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bids, it's difficult to assess if the pricing is optimal compared to market rates for similar communication equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source procurement, meaning competition was not sought. This approach may expedite delivery but likely results in higher prices than a competitive process would yield.
Taxpayer Impact: Taxpayer funds are being used for critical foreign aid, with the sole-source nature potentially increasing the overall cost to taxpayers.
Public Impact
Enhances Ukraine's communication capabilities during the ongoing conflict. Supports U.S. foreign policy and defense objectives in Eastern Europe. Procurement of advanced communication technology for a partner nation. Potential for follow-on contracts for maintenance and additional equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source justification lacks transparency on price reasonableness.
- Limited visibility into alternative suppliers or technologies.
- Potential for cost overruns due to lack of competition.
Positive Signals
- Addresses urgent need for critical communication assets.
- Supports a key U.S. ally in a high-stakes geopolitical environment.
- Leverages established supplier for specialized defense equipment.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is crucial for defense and national security. Spending in this sector can fluctuate based on geopolitical events and technological advancements.
Small Business Impact
The awardee, L3Harris Global Communications, Inc., is a large business. There is no indication that small businesses were involved in this specific sole-source procurement, limiting their opportunity.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the sole-source nature raises questions about the extent of price negotiation and oversight applied.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Sole-source award limits opportunities for small businesses.
- Potential for vendor dependency and lack of market alternatives.
- Limited transparency on the price negotiation process.
- Risk of delivery delays if the sole supplier faces issues.
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 $114.3 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. DIRECTED, SOLE SOURCE PROCUREMENT OF HARRIS RADIOS, ACCESSORIES 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $114.3 million.
What is the period of performance?
Start: 2023-05-30. End: 2024-10-31.
What is the justification for the sole-source award, and how was price reasonableness determined without competition?
The justification for a sole-source award typically involves urgent and compelling needs that cannot be met by other sources within the required timeframe. Price reasonableness is often assessed through historical pricing data, comparison to similar commercial items, or independent government cost estimates. However, without competitive bids, the government's leverage in price negotiation is reduced, making robust cost analysis critical.
What are the risks associated with awarding a large contract solely to one vendor, especially in a sole-source scenario?
The primary risks include paying a premium due to the lack of competition, potential for vendor lock-in, and reduced incentive for the vendor to innovate or offer cost efficiencies. If the sole-source vendor experiences production issues or supply chain disruptions, it could significantly delay critical deliveries, impacting the end-user's operational capabilities.
How effective will these radios be in supporting Ukraine's communication needs, considering the urgency and potential technological limitations?
The effectiveness hinges on the specific capabilities of the Harris radios and their compatibility with Ukraine's existing communication infrastructure. While the urgency suggests a need for proven, readily available technology, the sole-source nature might mean foregoing potentially more advanced or cost-effective alternatives that could have emerged from a competitive 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: $114,286,512
Exercised Options: $114,286,512
Current Obligation: $114,286,512
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB21D5003
IDV Type: IDC
Timeline
Start Date: 2023-05-30
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-08-28
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