DoD awards $9.7M sole-source contract for L3Harris radios under international agreement

Contract Overview

Contract Amount: $9,705,126 ($9.7M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-29

End Date: 2026-12-30

Contract Duration: 884 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES. 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 $9.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-4 - INTERNATIONAL AGREEMENT. Key points: 1. Contract awarded via sole-source justification due to international agreement. 2. Focus on L3Harris Global Communications radios, accessories, and services. 3. Delivery order contract with a firm-fixed-price structure. 4. Performance period extends through December 2026. 5. No small business set-aside indicated for this acquisition.

Value Assessment

Rating: fair

The contract value of $9.7 million for radios, accessories, and services is difficult to benchmark without specific item details and quantities. As a sole-source award, there is no direct comparison to competitive bids to assess value for money. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition raises questions about whether the pricing reflects the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, citing FAR 6.302-4, which pertains to international agreements. This means the contract was not competed among multiple vendors. The justification for not competing the award is based on the specific requirements of an international agreement, suggesting a unique or mandated supplier relationship.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete and potentially offer lower prices. Taxpayers may not benefit from the cost savings that could arise from a competitive bidding process.

Public Impact

Provides critical communication equipment and services to the Department of Defense. Supports military operations by ensuring reliable communication capabilities. Likely impacts personnel within the Army, given the awarding agency. Ensures continued operational readiness through the provision of essential communication technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed contract.
Sole-source nature limits transparency in pricing and vendor selection.
Reliance on a single vendor could pose supply chain risks if not managed carefully.

Positive Signals

Awarded under an international agreement, suggesting strategic necessity.
Firm-fixed-price contract provides cost predictability.
Clear end date for the contract minimizes long-term financial uncertainty.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, specifically NAICS code 334290. This sector involves the production of various communication equipment. The award to L3Harris Global Communications, a known defense contractor, indicates a focus on specialized, potentially high-security communication systems for government use. Benchmarking spending in this specific niche is challenging without more granular data on the types of radios and services procured.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by the 'sb' field being false. Consequently, there are no direct subcontracting opportunities mandated for small businesses through this specific award. The primary contractor, L3Harris, is a large business, and the sole-source nature of the award further limits the potential for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award justified by an international agreement, specific oversight might also involve inter-agency or international coordination. Transparency is limited due to the non-competitive nature, but contract performance and financial expenditures would still be subject to standard government auditing and reporting requirements.

Related Government Programs

Department of Defense Communications Equipment Procurements
L3Harris Technologies Contracts
Sole Source Acquisitions
International Agreement Procurements

Risk Flags

Sole Source Justification
International Agreement Compliance
Potential for Higher Costs
Limited Vendor Options

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.7 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED, SOLE SOURCE ACQUISITION FOR L3HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES. 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 $9.7 million.

What is the period of performance?

Start: 2024-07-29. End: 2026-12-30.

What specific types of radios and accessories are being procured under this contract, and what are their intended operational uses?

The provided data indicates the procurement of 'L3HARRIS GLOBAL COMMUNICATIONS RADIOS, ACCESSORIES, AND SERVICES.' However, specific model numbers, technical specifications, quantities, and intended operational uses (e.g., tactical, strategic, secure communications) are not detailed in the summary. Understanding these specifics is crucial for assessing the necessity and appropriateness of the sole-source award and the value of the procured items. Without this granular information, it's difficult to determine if these are standard off-the-shelf items or highly specialized systems that might justify a sole-source approach due to unique capabilities or integration requirements.

How does the pricing for these L3Harris radios and accessories compare to similar products offered by other manufacturers or to previous L3Harris contracts for comparable equipment?

Direct price comparison is challenging due to the sole-source nature of this award and the lack of detailed product specifications. Typically, competitive bidding allows for benchmarking against multiple vendors. In the absence of competition, a thorough review would involve comparing the unit prices and service costs against historical L3Harris contracts for similar radio systems or against publicly available pricing for comparable commercial-off-the-shelf (COTS) or government-off-the-shelf (GOTS) equipment, if applicable. The justification for the international agreement (FAR 6.302-4) may also include pricing stipulations or reference points that should be examined.

What are the potential risks associated with a sole-source acquisition for critical communication equipment, particularly under an international agreement?

Sole-source acquisitions inherently carry risks, including potentially higher costs due to the lack of competitive pressure, limited vendor innovation, and a potential over-reliance on a single supplier. For critical communication equipment, this could translate to vulnerabilities in supply chain continuity, support, and future upgrades. The international agreement aspect adds another layer; while it may be strategically necessary, it could also introduce complexities related to foreign policy, export controls, or differing technical standards. Ensuring robust contract management and performance monitoring is essential to mitigate these risks.

What is the track record of L3Harris Global Communications, Inc. in fulfilling similar sole-source contracts for the Department of Defense, particularly concerning delivery timelines and product quali

L3Harris Global Communications, Inc. is a well-established defense contractor with a significant history of providing communication systems to the U.S. military. Assessing their track record on similar sole-source contracts would involve reviewing past performance evaluations (e.g., CPARS reports), delivery performance data, and any documented issues related to quality or timeliness on previous awards. Given their established presence, it is likely they have experience with sole-source procurements justified by international agreements or unique technical requirements. A deeper dive into their performance history on comparable contracts would provide insight into their reliability for this specific award.

How does the total contract value of $9.7 million compare to historical spending patterns for communication equipment within the Department of the Army or for similar international agreements?

The $9.7 million contract value represents a moderate investment for specialized communication equipment and services. To contextualize this, one would need to analyze historical spending data for the Department of the Army's procurement of radios, communication accessories, and related services, particularly those acquired under sole-source or international agreement justifications. Comparing this award to the average value and frequency of similar procurements over the past several fiscal years would reveal whether this represents a typical, increased, or decreased level of spending for such capabilities. Understanding the broader spending landscape helps in assessing the significance of this particular contract.

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: $9,705,126

Exercised Options: $9,705,126

Current Obligation: $9,705,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline