DoD awards $29.6M for FMS communications equipment, with L3Harris Global Communications as the sole provider

Contract Overview

Contract Amount: $29,635,553 ($29.6M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-25

End Date: 2027-04-30

Contract Duration: 674 days

Daily Burn Rate: $44.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO FULFILL A FOREIGN MILITARY SALES (FMS) REQUIREMENT IN ACCORDANCE WITH FMS CASE GY-B-XBV AND GY-B-XBU, ACQUISITION REQUIREMENTS PACKAGE (ARP) AE25021 (GY-B-XBV) AND AE25022 (GY-B-XBU).

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO FULFILL A FOREIGN MILITARY SALES (FMS) REQUIREMENT IN ACCORDANCE WITH FMS CASE GY-B-XBV AND GY-B-XBU, ACQUISITION REQUIREMENTS PACKAGE (ARP) AE25021 (GY-B-XBV) AND AE25022 (GY-B-XBU). Key points: 1. Contract awarded to L3Harris Global Communications, Inc. for foreign military sales (FMS) requirements. 2. The contract value is approximately $29.6 million, covering a period of roughly 2.25 years. 3. This award is designated as 'not available for competition', indicating a sole-source procurement. 4. The North American Industry Classification System (NAICS) code is 334220, related to wireless communications equipment manufacturing. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract is for FMS cases GY-B-XBV and GY-B-XBU, managed by the Department of the Army.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the equipment and services provided. The fixed-price nature offers some cost certainty, but the lack of competition raises concerns about whether the government secured the best possible price. The contract value of $29.6 million for a 674-day period suggests a significant investment, and without competitive bids, it's difficult to assess if this represents fair market value or if there's potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, meaning it was awarded directly to L3Harris Global Communications, Inc. without soliciting bids from other potential suppliers. Sole-source procurements are typically justified when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of a competitive bidding process means that the government did not benefit from price discovery through market forces.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pricing. The government's ability to negotiate favorable terms is limited when there is no alternative supplier.

Public Impact

Foreign military sales recipients will benefit from the provision of essential communications equipment. The contract supports the Department of the Army's acquisition requirements for FMS cases. The services delivered are critical for maintaining and enhancing communication capabilities for allied nations. The contract's impact on the domestic workforce is likely concentrated within L3Harris Global Communications, Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competitive award.
Sole-source awards can limit innovation by not engaging a broader market.
Reliance on a single contractor can create supply chain risks.
Foreign Military Sales can be complex and require careful oversight to ensure value.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor.
The contract specifies clear FMS requirements, providing defined scope.
L3Harris Global Communications is an established provider in the defense sector.

Sector Analysis

The wireless communications equipment manufacturing sector is highly dynamic, driven by rapid technological advancements and global demand. This contract falls within the broader defense electronics market, where specialized communication systems are crucial for military operations and international partnerships. Spending in this area is often characterized by long-term development cycles and high R&D investments. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the equipment, but significant FMS contracts for communication systems can range from tens to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature of the award, there are likely no subcontracting opportunities specifically mandated for small businesses through this particular procurement vehicle. The impact on the small business ecosystem is therefore minimal, as the primary contract is with a large, established corporation.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency may be limited due to the sole-source nature, but reporting requirements for FMS contracts typically exist. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales Program
Department of Defense Communications Systems
Wireless Communications Equipment Procurement
Defense Security Cooperation Agency (DSCA) Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific equipment and justification for sole-sourcing.
Potential for cost overruns if contractor's internal cost estimates are inaccurate (though risk is on contractor).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. THE PURPOSE OF THIS CONTRACT IS TO FULFILL A FOREIGN MILITARY SALES (FMS) REQUIREMENT IN ACCORDANCE WITH FMS CASE GY-B-XBV AND GY-B-XBU, ACQUISITION REQUIREMENTS PACKAGE (ARP) AE25021 (GY-B-XBV) AND AE25022 (GY-B-XBU).

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 $29.6 million.

What is the period of performance?

Start: 2025-06-25. End: 2027-04-30.

What specific types of radio and wireless communication equipment are being procured under this contract?

The provided data does not specify the exact types of radio and wireless communication equipment. It only references the NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) and the purpose of fulfilling Foreign Military Sales (FMS) requirements under cases GY-B-XBV and GY-B-XBU. To understand the specific equipment, one would need to consult the detailed Acquisition Requirements Package (ARP) AE25021 and AE25022, or the contract's statement of work. This information is crucial for assessing the technological relevance and potential obsolescence of the procured items.

What is the historical relationship between the Department of the Army and L3Harris Global Communications, Inc. for similar FMS procurements?

The provided data does not detail the historical relationship between the Department of the Army and L3Harris Global Communications, Inc. for similar FMS procurements. L3Harris is a known defense contractor, and it is plausible they have a track record with the Army and FMS. A thorough analysis would require examining past contracts awarded to L3Harris by the Army, particularly those related to communications equipment and FMS cases. Understanding this history could reveal patterns of performance, pricing consistency, and the frequency of sole-source awards, providing context for the current contract's value and necessity.

How was the determination made that this procurement was 'not available for competition'?

The determination that this procurement was 'not available for competition' implies that the Department of the Army followed specific federal acquisition regulations (FAR) that allow for sole-source awards. Common justifications include that only one responsible source exists to meet the requirement (e.g., proprietary technology, unique capabilities), or that the agency seeks to procure from a specific source under limited circumstances (e.g., follow-on to a competitive award where only one contractor can perform). Without access to the Justification and Approval (J&A) document for this contract, the precise reason remains undisclosed, but it signifies a lack of market research or a deliberate decision to bypass competitive bidding.

What are the key performance indicators (KPIs) and delivery milestones outlined in the contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or delivery milestones for this contract. These details would typically be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a Firm Fixed Price contract, especially one involving FMS, clear milestones for production, testing, delivery, and acceptance are critical for ensuring timely fulfillment and managing taxpayer funds effectively. The contract duration is 674 days (approximately 2.25 years), suggesting a phased delivery schedule rather than a single delivery event.

What is the breakdown of the $29.6 million contract value across different cost elements (e.g., hardware, software, services, profit)?

The provided data offers only the total contract value ($29,635,553.37) and does not break it down into specific cost elements such as hardware, software, labor, overhead, or profit. For a Firm Fixed Price contract, the contractor is responsible for managing these internal costs to ensure profitability. A detailed cost breakdown is often considered proprietary information by the contractor, but agencies may have internal reviews or require certain levels of detail during the negotiation phase, especially for large sole-source awards, to ensure reasonableness.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $29,635,553

Exercised Options: $29,635,553

Current Obligation: $29,635,553

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline