Foreign Military Sales funding of $20.6M for allied nation supplies and services awarded to L3Harris Global Communications

Contract Overview

Contract Amount: $20,575,874 ($20.6M)

Contractor: L3harris Global Communications, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2026-10-30

Contract Duration: 407 days

Daily Burn Rate: $50.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOREIGN MILITARY SALES FUNDING TO PURCHASE SUPPLIES AND SERVICES 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 $20.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC. for work described as: FOREIGN MILITARY SALES FUNDING TO PURCHASE SUPPLIES AND SERVICES FOR AN ALLIED NATION. Key points: 1. Contract value represents a significant investment in supporting allied military capabilities through foreign military sales. 2. Awardee, L3Harris Global Communications, is a major player in defense and communications technology. 3. The contract's duration of over a year suggests a need for sustained support and supply. 4. The firm-fixed-price structure aims to control costs for the government and the allied nation. 5. This funding falls under the broader category of defense procurement and international security cooperation.

Value Assessment

Rating: good

The contract value of $20.6 million for supplies and services for an allied nation appears reasonable within the context of foreign military sales. Benchmarking against similar FMS contracts for communication equipment and support would provide a more precise value-for-money assessment. However, given the nature of specialized military equipment and services, the price is likely competitive for the capabilities offered by a prime contractor like L3Harris.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Army identified L3Harris Global Communications as the only responsible source capable of meeting the specific requirements. This could be due to proprietary technology, unique expertise, or existing integration with allied nation systems. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Sole-source awards can limit taxpayer benefit by not leveraging competitive pressures to drive down prices. However, if L3Harris is the only viable provider for critical, specialized equipment, this approach may be necessary to ensure national security objectives are met.

Public Impact

The primary beneficiaries are the allied nation's military forces, receiving essential supplies and services to enhance their operational capabilities. The contract supports the delivery of communication equipment and related services, crucial for modern military operations. Geographic impact is primarily focused on the allied nation receiving the support, contributing to regional stability. Workforce implications may include L3Harris personnel involved in manufacturing, logistics, and technical support, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for the allied nation and indirectly for US taxpayers if FMS fees apply.
Lack of competition may reduce transparency in pricing and performance metrics compared to a competed contract.
Dependence on a single contractor for critical supplies could pose supply chain risks if not managed effectively.

Positive Signals

Award to a reputable contractor like L3Harris suggests a focus on quality and reliability of supplied goods and services.
Firm-fixed-price contract provides cost certainty for the duration of the award.
Supports U.S. foreign policy objectives by bolstering the capabilities of an allied nation.

Sector Analysis

This contract falls within the broader defense industry, specifically the segment focused on communications equipment manufacturing and related services. The market for such specialized military technology is often characterized by high barriers to entry, significant R&D investment, and a limited number of prime contractors capable of meeting stringent government requirements. Spending in this sector is driven by national security needs, technological advancements, and international alliances. Comparable spending benchmarks would involve analyzing other foreign military sales for similar communication systems or defense articles.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' field is false. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses may exist, but they would depend on L3Harris's internal procurement strategies and the specific components or services required. The impact on the small business ecosystem is likely minimal for this particular award, as it is a sole-source contract with a large prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is limited due to the sole-source nature, but reporting requirements for foreign military sales typically exist. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales Program
Defense Communications Systems
Allied Nation Security Assistance
Department of Defense Procurement

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to L3HARRIS GLOBAL COMMUNICATIONS, INC.. FOREIGN MILITARY SALES FUNDING TO PURCHASE SUPPLIES AND SERVICES 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 $20.6 million.

What is the period of performance?

Start: 2025-09-18. End: 2026-10-30.

What is L3Harris Global Communications' track record with the Department of Defense and in executing Foreign Military Sales contracts?

L3Harris Global Communications, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for a wide array of communication systems, electronic warfare capabilities, and space and airborne systems. Their experience spans numerous defense programs and includes significant involvement in international sales. For Foreign Military Sales (FMS) specifically, L3Harris has a history of providing advanced technology and support to allied nations, often involving complex integration and sustainment services. Their performance on these contracts is generally viewed as reliable, given their established position as a major defense contractor. However, like any large contractor, specific contract performance can vary, and detailed reviews of past FMS performance would be necessary for a comprehensive assessment.

How does the $20.6 million contract value compare to similar FMS contracts for communication equipment?

The $20.6 million contract value for communication supplies and services for an allied nation is a moderate-sized award within the Foreign Military Sales (FMS) landscape. FMS contracts can range from tens of thousands to billions of dollars, depending on the complexity and quantity of the equipment or services. For specialized communication systems, particularly those involving advanced technology or integration with existing platforms, $20.6 million is a reasonable figure. Comparable contracts might include procurements for secure communication devices, satellite terminals, or tactical communication networks. Without specific details on the exact nature of the 'supplies and services,' a precise benchmark is difficult, but it aligns with typical procurements for significant, but not program-defining, FMS packages.

What are the primary risks associated with a sole-source award for this type of defense procurement?

The primary risks associated with a sole-source award for defense procurement, such as this FMS contract, include a lack of price competition, which can lead to higher costs for the government and the allied nation. There's also a potential for reduced innovation and efficiency, as the contractor faces less pressure to optimize performance or explore cost-saving measures. Furthermore, sole-source awards can raise concerns about transparency and fairness in the procurement process. Dependence on a single supplier can also create supply chain vulnerabilities, especially if the contractor experiences production issues or faces geopolitical disruptions. Ensuring robust contract oversight and performance management becomes critical to mitigate these risks.

What is the expected program effectiveness and impact on the allied nation's military capabilities?

The expected program effectiveness hinges on the specific nature of the 'supplies and services' procured. Assuming these are critical communication assets, their integration into the allied nation's military infrastructure should enhance operational command and control, intelligence sharing, and overall situational awareness. This, in turn, can bolster their defensive and offensive capabilities, improve interoperability with coalition partners (including the U.S.), and contribute to regional security. The effectiveness will be directly tied to the reliability, security, and user-friendliness of the provided equipment and the quality of associated training and support. Successful implementation should lead to a more robust and responsive military force for the allied nation.

How does this contract fit into the broader context of U.S. foreign military sales and international security cooperation?

This contract is a direct manifestation of the U.S. Foreign Military Sales (FMS) program, a key tool for advancing U.S. foreign policy and national security objectives. By providing defense articles and services to allies, the U.S. aims to enhance their capabilities, promote regional stability, and foster interoperability with U.S. forces. This specific award, focusing on communication supplies, suggests an effort to bolster the allied nation's ability to conduct secure and effective operations. It aligns with broader U.S. strategies to strengthen alliances and partnerships, enabling allies to better defend themselves and contribute to collective security efforts. Such sales also support the U.S. defense industrial base.

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: $20,575,874

Exercised Options: $20,575,874

Current Obligation: $20,575,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D5003

IDV Type: IDC

Timeline