DoD Awards $11.6M Sole Source Contract for L3Harris Radios and Services
Contract Overview
Contract Amount: $11,604,497 ($11.6M)
Contractor: L3harris Global Communications, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-24
End Date: 2026-12-31
Contract Duration: 463 days
Daily Burn Rate: $25.1K/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 $11.6 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. Significant investment in critical communication equipment for national defense. 2. Sole-source procurement limits competitive pricing and potential cost savings. 3. Contract duration of over 1.5 years suggests ongoing operational needs. 4. Focus on L3Harris indicates a reliance on a specific vendor for specialized equipment.
Value Assessment
Rating: questionable
The contract value of $11.6M for radios and services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives or if it reflects a fair price for specialized, sole-source equipment.
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 approach can be justified for unique capabilities but often leads to higher prices and reduced innovation compared to open competition.
Taxpayer Impact: Taxpayer funds are being used for a significant procurement without the benefit of competitive price discovery, potentially leading to a higher overall cost.
Public Impact
Ensures critical communication capabilities for national security operations. Potential for higher costs due to lack of competitive bidding. Supports a key defense contractor, L3Harris, in the communications sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of price benchmark for comparison
- Long contract duration
Positive Signals
- Procurement of essential communication equipment
- Supports national defense needs
Sector Analysis
This procurement falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area is critical for national defense, but sole-source awards can inflate costs compared to more competitive segments.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source procurement. The award is directly to L3Harris Global Communications, Inc.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The Department of Defense's contracting process should include justification for the sole-source award and mechanisms to monitor cost-effectiveness throughout the contract period.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- No clear price benchmark provided
- Potential for vendor lock-in
- Long contract duration
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 $11.6 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 $11.6 million.
What is the period of performance?
Start: 2025-09-24. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or lack of viable alternatives. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, commercial price lists, or independent cost estimates, even without direct competition.
What are the risks associated with relying on a single vendor for critical communication equipment over an extended period?
Risks include vendor lock-in, potential price increases over time, supply chain vulnerabilities if the vendor faces disruptions, and a lack of incentive for the vendor to innovate or improve service due to limited competition. This dependence can also impact the government's ability to adopt newer, potentially superior technologies from other sources.
How does this procurement align with the Department of the Army's long-term communication strategy and technology roadmap?
Understanding the strategic alignment is key. This contract should support specific operational requirements and fit within the broader modernization plans for the Army's communication systems. Without this context, it's difficult to assess the long-term effectiveness and value of investing in L3Harris equipment.
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: $11,604,497
Exercised Options: $11,604,497
Current Obligation: $11,604,497
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB21D5003
IDV Type: IDC
Timeline
Start Date: 2025-09-24
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-09-24
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