DoD Awards $119M Sole Source Contract for Ukraine Communications Radios to L3Harris
Contract Overview
Contract Amount: $119,072,110 ($119.1M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-05-30
End Date: 2025-03-15
Contract Duration: 655 days
Daily Burn Rate: $181.8K/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 AND 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 $119.1 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATIONS RADIOS AND ACCESSORIES FOR THE COUNTRY OF UKRAINE. Key points: 1. Significant investment in critical communication technology for Ukraine. 2. Sole-source award to L3Harris raises questions about competition and potential price inflation. 3. Contract duration extends into early 2025, indicating ongoing support needs. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $119M for radios and accessories is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar acquisitions or commercial offerings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning L3Harris was the only vendor considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this acquisition means taxpayers may not be receiving the best possible price due to the lack of competitive pressure.
Public Impact
Ensures critical communication capabilities for Ukrainian forces. Potential for higher costs due to lack of competition. Supports a key defense contractor, L3Harris. Highlights US commitment to supporting Ukraine's defense efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for comparison.
- Extended contract duration.
Positive Signals
- Provides essential equipment to an ally.
- Supports ongoing military operations.
Sector Analysis
This acquisition falls within the 'Other Communications Equipment Manufacturing' sector. The value of $119M is significant for this type of specialized equipment, especially in a wartime context.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and that the equipment meets the critical needs of Ukraine.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency on pricing justification
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 $119.1 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR HARRIS GLOBAL COMMUNICATIONS RADIOS AND 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $119.1 million.
What is the period of performance?
Start: 2023-05-30. End: 2025-03-15.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves urgent needs or the unavailability of other qualified sources. Given the context of supporting Ukraine, urgency might be a factor. However, a thorough review should confirm that no other vendors could meet the requirements within the necessary timeframe and that competitive options were genuinely explored and found unviable.
How is the government ensuring fair pricing without a competitive bidding process?
Without competition, the government must rely on robust price analysis techniques. This includes comparing the proposed prices to historical contract data, commercial prices for similar items, and independent cost estimates. Negotiation with the sole-source provider is also crucial to achieve the best possible value, though the leverage is reduced compared to a competitive scenario.
What is the long-term strategy for ensuring reliable and cost-effective communication equipment for Ukraine beyond this contract?
The government should consider developing a longer-term strategy that may involve fostering competition for future needs or establishing pre-negotiated pricing agreements. Exploring options for sustainment, training, and future upgrades will also be essential to ensure the effective and efficient use of these communication assets over time.
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: $119,072,110
Exercised Options: $119,072,110
Current Obligation: $119,072,110
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,736,750
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: 2025-03-15
Potential End Date: 2025-03-15 12:03:00
Last Modified: 2024-01-25
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