DoD awards $125M sole-source contract for L3Harris radios to support Ukraine

Contract Overview

Contract Amount: $124,997,456 ($125.0M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-16

End Date: 2025-08-31

Contract Duration: 349 days

Daily Burn Rate: $358.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS AND ACCESSORIES FOR THE COUNTRY OF UKRAINE. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-1(A)(2).

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $125.0 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS AND ACCESSORIES FOR THE COUNTRY OF UKRAINE. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-1(A)(2). Key points: 1. Acquisition is a sole-source award, citing urgency and specific equipment needs for Ukraine. 2. Contract value of $125M represents a significant investment in communication capabilities for a partner nation. 3. The award is a delivery order, indicating it's part of a larger, existing contract vehicle. 4. L3Harris Global Communications, Inc. is the sole contractor, highlighting a single-source dependency. 5. The contract duration is approximately one year, suggesting a focused, short-term need. 6. No small business participation is indicated for this specific award. 7. The acquisition falls under the 'Other Communications Equipment Manufacturing' NAICS code.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source award is challenging without comparable contract data for similar urgent, foreign military sales of specialized communication equipment. The firm fixed-price structure provides cost certainty for the government, but the absence of competition limits the opportunity for price discovery and potential savings. The total value of $125 million is substantial, and without competitive bidding, it's difficult to ascertain if this represents the best possible value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, specifically citing FAR 6.302-1(a)(2), which typically pertains to urgent and compelling needs where only one responsible source can provide the supplies or services. The absence of a competitive process means that multiple bidders were not considered, and the government did not solicit proposals from various vendors.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most competitive pricing that could have been achieved through an open bidding process. This can lead to higher costs compared to what might be negotiated in a competitive environment.

Public Impact

The primary beneficiaries are the armed forces of Ukraine, receiving critical communication equipment. The services delivered include the provision of L3Harris radios and associated accessories. The geographic impact is focused on Ukraine, supporting its defense and operational needs. Workforce implications are primarily within L3Harris Global Communications, Inc., fulfilling the order.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Urgency justification requires careful scrutiny to ensure it was truly the only option.
Lack of small business participation means missed opportunities for smaller firms.

Positive Signals

Directly supports a key ally (Ukraine) with essential defense capabilities.
Firm fixed-price contract provides cost certainty for the government.
Awarded by the Department of the Army, indicating established procurement channels.

Sector Analysis

This contract falls within the broader 'Communications Equipment Manufacturing' sector, specifically NAICS code 334290. This industry is characterized by the production of a wide range of telecommunications equipment. Given the sole-source nature and the specific recipient (Ukraine), this acquisition is likely driven by unique operational requirements and geopolitical considerations rather than standard market dynamics. Comparable spending benchmarks are difficult to establish due to the specialized nature and foreign military sales context.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of small business participation means that opportunities to leverage the small business industrial base for this particular acquisition were not pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to internal review and potentially higher-level scrutiny to ensure compliance with procurement regulations. Transparency is limited due to the sole-source nature, but contract award details are generally made public. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Foreign Military Sales (FMS)
Ukraine Security Assistance Initiative (USAI)
Department of Defense Communications Equipment Procurements
L3Harris Technologies Contracts

Risk Flags

Sole-source justification
Urgent need validation
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $125.0 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS AND ACCESSORIES FOR THE COUNTRY OF UKRAINE. THIS CONTRACT IS AWARDED IN ACCORDANCE WITH FAR 6.302-1(A)(2).

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 $125.0 million.

What is the period of performance?

Start: 2024-09-16. End: 2025-08-31.

What is the specific justification for the sole-source award under FAR 6.302-1(a)(2)?

The justification for the sole-source award under FAR 6.302-1(a)(2) typically relates to urgent and compelling needs where only one responsible source can provide the required supplies or services. For this contract, the data indicates it is for 'UKRAINE-DIRECTED SOLE SOURCE ACQUISITION FOR L3HARRIS RADIOS AND ACCESSORIES FOR THE COUNTRY OF UKRAINE.' This suggests that the Department of Defense determined that L3Harris Global Communications, Inc. was the only entity capable of providing the specific radios and accessories required by Ukraine in the necessary timeframe, likely due to unique technical specifications, existing interoperability requirements with Ukrainian forces, or the critical and immediate nature of the need stemming from the ongoing conflict. The 'urgent and compelling' aspect implies that a competitive solicitation process would have caused unacceptable delays in providing essential support to Ukraine.

How does the $125 million contract value compare to typical spending on similar communication equipment for foreign military aid?

Comparing the $125 million contract value to typical spending on similar communication equipment for foreign military aid is challenging without access to specific, aggregated data on all such procurements. However, this figure represents a substantial investment. Foreign military sales (FMS) can vary widely in value, from small equipment packages to multi-billion dollar programs. The value suggests a significant quantity of radios and accessories, or potentially high-end, specialized equipment. Given the context of supporting Ukraine's defense efforts, the scale of this award is consistent with the high demand for military hardware and support in active conflict zones. Without direct comparable contracts for similar quantities and types of equipment to other nations under similar circumstances, it's difficult to definitively benchmark this specific value as high or low, but it indicates a significant commitment.

What are the potential risks associated with a sole-source acquisition of this magnitude?

The primary risk associated with a sole-source acquisition of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most cost-effective outcome. Another risk is vendor lock-in, where reliance on a single supplier for critical equipment can create dependencies and limit future flexibility. There's also a risk that the justification for sole-sourcing might be based on incomplete information or could be perceived as circumventing competitive processes, potentially leading to scrutiny. Furthermore, if L3Harris faces production issues or supply chain disruptions, the entire program's delivery could be jeopardized, as there are no alternative suppliers readily available under this contract.

What is the expected performance period and delivery timeline for these communication assets?

The contract has a stated start date of September 16, 2024, and an end date of August 31, 2025. This provides a performance and delivery period of approximately 11.5 months. As this is a delivery order, the specific delivery schedule for the radios and accessories would likely be detailed within the order itself or subsequent taskings. The duration suggests a focused effort to equip Ukraine with these communication assets within a defined, relatively short timeframe, aligning with the urgent nature often associated with support during active conflicts. The firm fixed-price contract type implies that L3Harris is obligated to deliver the specified items within this period at the agreed-upon price.

Are there any provisions for sustainment, training, or long-term support included in this contract?

The provided data for this contract specifies the acquisition of 'L3HARRIS RADIOS AND ACCESSORIES.' It does not explicitly mention provisions for sustainment, training, or long-term support. Typically, such services might be included in separate contracts or task orders, especially for foreign military sales where the recipient nation often assumes responsibility for sustainment and training post-delivery. However, it is possible that some level of initial support or documentation is bundled. Without further details on the specific delivery order or associated agreements, it's presumed that the primary focus of this $125 million award is the procurement of the hardware itself. Future needs for sustainment or training would likely require separate contractual actions.

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: $124,997,456

Exercised Options: $124,997,456

Current Obligation: $124,997,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline