DoD Awards $62.6M Sole-Source Radio Contract to L3Harris for Poland

Contract Overview

Contract Amount: $62,599,376 ($62.6M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-22

End Date: 2028-03-31

Contract Duration: 1,470 days

Daily Burn Rate: $42.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-4 - INTERNATIONAL AGREEMENT.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $62.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-4 - INTERNATIONAL AGREEMENT. Key points: 1. Sole-source award to L3Harris Global Communications for radios and accessories. 2. Contract is for Poland under an international agreement, citing FAR 6.302-4. 3. No competition was available due to the international agreement. 4. The contract value is $62,599,375.52 with a duration of 1470 days.

Value Assessment

Rating: fair

Pricing is not explicitly detailed for comparison as it's a sole-source international agreement. Benchmarking against similar domestic sole-source contracts for specialized communication equipment would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source under FAR 6.302-4 due to an international agreement. This limits price discovery and competition, potentially impacting the final price paid by the government.

Taxpayer Impact: Taxpayer funds are used for this international sale, with limited transparency on price competitiveness due to the sole-source nature.

Public Impact

Supports U.S. foreign military sales and international partnerships. Provides critical communication equipment to an allied nation. Ensures interoperability and security for Polish forces. Potential for follow-on sustainment and training contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
International agreement complexity may obscure cost details.
No small business participation noted.

Positive Signals

Supports allied nation's defense capabilities.
Strengthens international security cooperation.
Utilizes established defense contractor.

Sector Analysis

This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this sector is driven by national security needs and technological advancements in communication systems, often involving specialized and high-cost equipment.

Small Business Impact

The data indicates no small business participation in this contract. Sole-source awards, especially those tied to international agreements, often bypass opportunities for small businesses to compete.

Oversight & Accountability

Oversight is managed by the Department of the Army within the Department of Defense. The justification for sole-source acquisition under an international agreement requires thorough review to ensure proper adherence to regulations.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source justification requires rigorous scrutiny.
Lack of competition may lead to inflated prices.
No small business participation.
International sales complexity can obscure cost transparency.
Potential for vendor lock-in for Poland.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS AND ACCESSORIES FOR THE COUNTRY OF POLAND. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-4 - INTERNATIONAL AGREEMENT.

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 $62.6 million.

What is the period of performance?

Start: 2024-03-22. End: 2028-03-31.

What is the specific nature of the international agreement that necessitates a sole-source award to L3Harris for Poland?

The international agreement likely pertains to a specific defense cooperation or foreign military sales program between the U.S. and Poland. FAR 6.302-4 allows for sole-source procurement when required by international agreement, often to ensure compatibility, security, or specific technological requirements that only one vendor can meet within the agreed framework.

How does the 'Other Communications Equipment Manufacturing' sector benchmark against similar international sole-source defense contracts in terms of cost?

Benchmarking is challenging due to the unique nature of international sole-source contracts. Domestic sole-source awards for similar specialized communication equipment can serve as a partial reference, but factors like foreign military sales markups, specific country requirements, and geopolitical considerations can significantly influence pricing, making direct comparisons difficult.

What are the potential long-term implications for U.S. taxpayers if this sole-source approach becomes a precedent for future international sales?

If this sole-source approach becomes a precedent, it could lead to reduced competitive pressure on pricing for future international sales, potentially increasing costs for U.S. taxpayers. It might also limit opportunities for other U.S. companies, including small businesses, to participate in these international markets.

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: $62,599,376

Exercised Options: $62,599,376

Current Obligation: $62,599,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline