DoD Awards $234M Sole Source L3Harris Radio Contract to Poland Under International Agreement

Contract Overview

Contract Amount: $234,056,440 ($234.1M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-12

End Date: 2025-12-30

Contract Duration: 474 days

Daily Burn Rate: $493.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS, ACCESSORIES, AND SERVICES 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 $234.1 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS, ACCESSORIES, AND SERVICES FOR THE COUNTRY OF POLAND. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-4 - INTERNATIONAL AGREEMENT. Key points: 1. Contract awarded to L3Harris Global Communications, Inc. for radios, accessories, and services. 2. Sole source acquisition justified by international agreement (FAR 6.302-4). 3. Significant taxpayer investment of $234 million. 4. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $234 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar international sales or domestic procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is sole-source due to an international agreement, limiting competition. The justification under FAR 6.302-4 suggests a specific foreign policy or national security objective, but the lack of competition may lead to a higher price than if multiple vendors were considered.

Taxpayer Impact: Taxpayer funds are being used for this international sale, and the absence of competition raises concerns about cost-effectiveness and potential overpayment.

Public Impact

Supports U.S. foreign policy and security cooperation with Poland. Ensures interoperability of communication systems for allied forces. Funds advanced communication technology for a key NATO ally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source justification based on international agreement

Positive Signals

Supports allied military capabilities
Utilizes established technology from a known vendor

Sector Analysis

This acquisition falls under 'Other Communications Equipment Manufacturing'. The defense sector often involves large, sole-source contracts for specialized equipment, particularly when international partnerships or national security imperatives are involved. Benchmarks are difficult without competitive data.

Small Business Impact

The contract data indicates no small business participation (sb: false). This is common in large, specialized defense procurements, especially sole-source awards, where prime contractors often handle the entire scope.

Oversight & Accountability

Oversight is crucial for sole-source contracts, especially those justified by international agreements. The Department of Defense and the Army are responsible for ensuring the funds are used appropriately and that the terms of the international agreement are met.

Related Government Programs

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

Risk Flags

Lack of competitive bidding may result in inflated costs.
Limited transparency into the pricing justification.
Potential for vendor lock-in for future upgrades or services.
Dependence on a single contractor for critical communication equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $234.1 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS, ACCESSORIES, AND SERVICES 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 $234.1 million.

What is the period of performance?

Start: 2024-09-12. End: 2025-12-30.

What is the specific international agreement that necessitates this sole-source acquisition, and what are its key objectives?

The specific international agreement is not detailed in the provided data. However, FAR 6.302-4 typically applies to acquisitions necessary to fulfill an international agreement or treaty, often related to cooperative defense programs, foreign military sales, or joint operational requirements. The objective is likely to provide Poland with critical communication capabilities aligned with NATO standards and U.S. foreign policy goals.

How does the Department of Defense ensure fair pricing and value for money in sole-source international acquisitions like this one?

Ensuring fair pricing in sole-source acquisitions is challenging. The DoD likely relies on historical pricing data for similar systems, cost analysis of the contractor's proposed expenses, and potentially independent government cost estimates. For international agreements, pricing may also be influenced by negotiated terms, foreign military sales program guidelines, and the strategic importance of the sale to U.S. foreign policy objectives.

What are the long-term implications for U.S. technological advantage and interoperability with Poland given this sole-source award?

This award ensures Poland receives L3Harris radios, likely maintaining interoperability with U.S. and NATO forces. While beneficial for immediate alliance capabilities, a continued reliance on sole-source awards for key allies could limit broader market competition and potentially slow the adoption of next-generation technologies if not managed proactively through future competitive strategies.

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: $234,056,440

Exercised Options: $234,056,440

Current Obligation: $234,056,440

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline