DoD Awards $45.4M for Foreign Military Sales Communications Equipment to L3Harris

Contract Overview

Contract Amount: $45,365,882 ($45.4M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-12

End Date: 2025-08-25

Contract Duration: 256 days

Daily Burn Rate: $177.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOREIGN MILITARY SALES FUNDING PURCHASING SUPPLIES FOR AN ALLIED NATION.

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14623

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $45.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: FOREIGN MILITARY SALES FUNDING PURCHASING SUPPLIES FOR AN ALLIED NATION. Key points: 1. Significant award to L3Harris for critical communications supplies. 2. Sole-source award limits competitive pricing opportunities. 3. Potential for higher costs due to lack of competition. 4. Focus on 'Other Communications Equipment Manufacturing' sector.

Value Assessment

Rating: fair

The award amount is substantial. Without competitive bids, it's difficult to assess if the price is optimal compared to similar contracts. Benchmarking against other government contracts for similar equipment is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and may lead to higher costs for the government and the allied nation.

Taxpayer Impact: Taxpayer funds are used for this foreign military sale, and the lack of competition could result in a less efficient use of those funds.

Public Impact

Supports U.S. foreign policy objectives by providing essential military equipment to allies. Ensures interoperability and strengthens defense capabilities of partner nations. Impacts the 'Other Communications Equipment Manufacturing' sector, potentially benefiting L3Harris.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competitive pricing benchmarks
  • Potential for cost overruns

Positive Signals

  • Supports allied nation's defense
  • Procurement of critical communication equipment

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector. Spending in this area is crucial for national security and maintaining technological superiority in communications.

Small Business Impact

The data indicates no small business participation in this specific contract. Further analysis would be needed to determine if small businesses were subcontracting opportunities or if the prime contractor has broader small business utilization goals.

Oversight & Accountability

Oversight is managed by the Department of the Army within the Department of Defense. The sole-source nature of the award warrants close monitoring to ensure fair pricing and effective delivery.

Related Government Programs

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

Risk Flags

  • Sole-source award limits competition.
  • Potential for inflated pricing.
  • Lack of transparency in price negotiation.
  • Dependency on a single supplier.
  • Foreign Military Sales funding requires careful stewardship.

Tags

other-communications-equipment-manufactu, department-of-defense, ny, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. FOREIGN MILITARY SALES FUNDING PURCHASING SUPPLIES FOR AN ALLIED NATION.

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 $45.4 million.

What is the period of performance?

Start: 2024-12-12. End: 2025-08-25.

What is the justification for the sole-source award, and how does it align with FAR regulations?

The justification for a sole-source award typically involves specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as the existence of a unique capability or urgent need where competition is not feasible. Understanding the specific FAR citation used for this award is crucial to assessing its legitimacy and ensuring it was appropriately justified to avoid potential protests and ensure taxpayer value.

How does the unit cost compare to commercially available or previously procured similar equipment?

Without competitive bids, a direct comparison of the unit cost is challenging. Benchmarking against the average selling price of similar communication equipment in the commercial market or against historical government procurement data for comparable items would be necessary. This analysis would help identify potential price discrepancies and ensure the government is obtaining fair value.

What are the long-term implications of relying on a sole-source provider for critical communication equipment for allied nations?

Long-term reliance on a sole-source provider can lead to vendor lock-in, reduced innovation, and potentially escalating costs over time as competition is absent. It also poses a risk if the sole-source provider faces financial difficulties or supply chain disruptions. Diversifying suppliers or fostering competition for future procurements would mitigate these risks.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingOther 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: $45,365,882

Exercised Options: $45,365,882

Current Obligation: $45,365,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline

Start Date: 2024-12-12

Current End Date: 2025-08-25

Potential End Date: 2025-08-25 00:00:00

Last Modified: 2025-11-21

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