DoD Awards $20.3M Sole Source Contract for L3Harris Radios and Services to L3Harris Global Communications
Contract Overview
Contract Amount: $20,265,222 ($20.3M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-25
End Date: 2028-05-31
Contract Duration: 1,163 days
Daily Burn Rate: $17.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF L3HARRIS RADIOS, ACCESSORIES AND SERVICES FOR THE NATION COUNTRY.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF L3HARRIS RADIOS, ACCESSORIES AND SERVICES FOR THE NATION COUNTRY. Key points: 1. Sole source procurement limits competition, potentially impacting price. 2. Contract awarded by the Department of the Army for essential communication equipment. 3. High value contract with a significant duration of 1163 days. 4. Focus on 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
Pricing is not available for comparison as this is a sole source award. Without competitive bids, it's difficult to assess if the price is optimal or reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
National security relies on reliable communication systems, making this procurement critical. Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration suggests a sustained need for these specific L3Harris products and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award
- Lack of price competition
- Limited transparency on pricing justification
Positive Signals
- Essential equipment for national security
- Long-term contract provides stability
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area is crucial for defense and national security, but competitive procurement is generally preferred to ensure value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source procurement. Opportunities for small business participation appear limited.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable, despite the lack of competition. Accountability for the justification of the sole-source award is key.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole Source Justification
- Lack of Competitive Bidding
- Potential for Inflated Pricing
- Vendor Lock-in Risk
- Limited Small Business Participation
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 $20.3 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. COUNTRY DIRECTED, SOLE SOURCE PROCUREMENT OF L3HARRIS RADIOS, ACCESSORIES AND SERVICES FOR THE NATION COUNTRY.
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 $20.3 million.
What is the period of performance?
Start: 2025-03-25. End: 2028-05-31.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. The price is usually determined through negotiation, referencing historical pricing, or using cost-plus-incentive-fee structures. However, without competitive bids, verifying fairness and reasonableness requires rigorous internal review and documentation by the procuring agency.
What are the potential risks associated with relying on a single vendor for critical communication equipment over an extended period?
Relying on a single vendor for critical communication equipment poses risks such as vendor lock-in, potential price increases without competitive pressure, and vulnerability if the vendor faces financial instability or supply chain disruptions. It also limits the government's ability to adopt newer, potentially more advanced technologies from other manufacturers.
How does this sole-source procurement align with the Department of Defense's broader goals for technological modernization and cost-effectiveness?
Sole-source procurements can sometimes hinder broader goals for technological modernization if they prevent the adoption of innovative solutions from a wider market. While they can ensure continuity for existing systems, they may not always be the most cost-effective approach compared to competitive processes that drive down prices and encourage innovation across the industry.
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: $20,265,222
Exercised Options: $20,265,222
Current Obligation: $20,265,222
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB21D5003
IDV Type: IDC
Timeline
Start Date: 2025-03-25
Current End Date: 2028-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2025-03-25
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