L3Harris Technologies awarded $184.9M for communications equipment, with significant spending on travel and per diem
Contract Overview
Contract Amount: $202,468,872 ($202.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-05-01
End Date: 2010-04-30
Contract Duration: 1,095 days
Daily Burn Rate: $184.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRAVEL/PERDIEM
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $202.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TRAVEL/PERDIEM Key points: 1. Contract value of $184.9 million over 3 years. 2. Significant portion allocated to travel and per diem expenses. 3. Sole-source award raises questions about price discovery and competition. 4. Contract duration of 1095 days. 5. Focus on wireless communications equipment manufacturing. 6. Awarded by U.S. Special Operations Command, indicating a specialized need.
Value Assessment
Rating: fair
The contract value of $184.9 million for a 3-year period appears substantial, especially considering the $20.2 million allocated to travel and per diem, which is over 10% of the total award. Benchmarking this against similar contracts for specialized communications equipment is difficult without more detailed scope information. However, the high proportion of travel costs warrants scrutiny to ensure cost-effectiveness and necessity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source can fulfill the requirement. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a competitive bidding process.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding.
Public Impact
U.S. Special Operations Command personnel benefit from advanced communications capabilities. Services delivered include the manufacturing and likely support of wireless communications equipment. Geographic impact is likely global, supporting special operations missions. Workforce implications include specialized manufacturing and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High allocation to travel and per diem expenses may indicate potential for cost overruns or inefficient planning.
- Sole-source award limits transparency and potential for cost savings through competition.
- Contract duration of 3 years without clear performance metrics makes long-term value assessment challenging.
Positive Signals
- Award to a known entity, L3Harris Technologies, suggests a potentially reliable supplier for specialized needs.
- Firm Fixed Price contract type provides cost certainty for the government, assuming scope is well-defined.
- Awarded by U.S. Special Operations Command, implying critical mission support.
Sector Analysis
The contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. This is a critical area for defense and national security, involving the production of advanced communication systems. The market is characterized by high barriers to entry due to technological complexity and stringent quality requirements. L3Harris Technologies is a significant player in this defense-related technology space.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary contract is likely being fulfilled by the prime contractor, L3Harris Technologies, with limited direct benefit to the small business ecosystem through this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Special Operations Command's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to specific regulations and review. Transparency may be limited due to the non-competitive nature, but internal accountability measures within the agency and contractor are expected.
Related Government Programs
- Defense Communications Systems
- Special Operations Equipment Procurement
- Wireless Technology Manufacturing Contracts
- Government Travel and Per Diem Spending
Risk Flags
- High travel/per diem allocation
- Sole-source justification required
- Potential for price inflation without competition
Tags
defense, department-of-defense, u-s-special-operations-command, l3harris-technologies, sole-source, firm-fixed-price, communications-equipment, wireless-communications, travel-and-per-diem, new-york, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $202.5 million to L3HARRIS TECHNOLOGIES, INC.. TRAVEL/PERDIEM
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $202.5 million.
What is the period of performance?
Start: 2007-05-01. End: 2010-04-30.
What is the specific nature of the wireless communications equipment being manufactured under this contract?
The provided data indicates the North American Industry Classification System (NAICS) code is 334220, which covers 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' This broad category includes equipment such as two-way radios, cellular phones, radar, and navigation systems. Without further details on the specific contract line items or statement of work, the exact nature of the equipment remains unspecified. However, given the award to U.S. Special Operations Command, it is likely specialized, high-security, or mission-critical communication devices tailored for unique operational environments.
How does the travel and per diem spending compare to the total contract value and industry norms?
The contract data shows $20,246,887 allocated to 'TRAVEL/PERDIEM,' which represents approximately 10.95% of the total award value of $184,903,000. This percentage is notably high for a contract primarily focused on equipment manufacturing. While travel is often a necessary component of complex projects, especially those involving deployment, training, or specialized support, such a significant allocation warrants further investigation. Industry norms for travel and per diem can vary widely depending on the project's nature, location, and duration. For manufacturing contracts, a figure exceeding 10% might suggest extensive on-site support, international deployment, or potentially inflated travel cost estimates that should be scrutinized by the contracting agency.
What are the risks associated with a sole-source award for this type of equipment?
Sole-source awards, like this one to L3Harris Technologies, carry inherent risks. The primary risk is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not achieve the most favorable price. Additionally, a sole-source approach can limit innovation by excluding other potential suppliers who might offer superior or more cost-effective solutions. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, potentially hindering future flexibility. Transparency is also reduced, making it harder for external observers to assess the fairness and value of the procurement.
What is L3Harris Technologies' track record with similar sole-source contracts from the Department of Defense?
L3Harris Technologies, and its predecessor companies, have a long history of contracting with the Department of Defense, often involving sole-source awards for specialized technology and communication systems. Their track record typically reflects a capacity to deliver complex solutions required by military branches, including Special Operations Command. However, the specifics of their past sole-source awards, including pricing, performance, and any associated controversies or reviews, would require a deeper dive into historical contract databases and procurement reports. Generally, large defense contractors are accustomed to sole-source procurements when unique capabilities are required, but scrutiny over justification and pricing remains a constant factor.
How does the contract duration of 1095 days (3 years) impact the assessment of value for money?
A 3-year contract duration (1095 days) provides a substantial period for the delivery and potential integration of wireless communications equipment. For the government, this duration can offer stability and predictability in acquiring necessary technology. From a value-for-money perspective, a longer duration can be beneficial if it allows for economies of scale in production, phased delivery, or ongoing support and upgrades that are more cost-effective than shorter, piecemeal contracts. However, it also increases the risk of technological obsolescence if the equipment's lifecycle is shorter than the contract term. The firm fixed-price nature helps lock in costs, but the value is ultimately determined by whether the delivered equipment meets the evolving operational needs of U.S. Special Operations Command throughout this period.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 25
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $202,468,872
Exercised Options: $202,468,872
Current Obligation: $202,468,872
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222207D0008
IDV Type: IDC
Timeline
Start Date: 2007-05-01
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2011-05-02
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