DoD's $967M Radio Set Contract Awarded to L3Harris Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $96,732,800 ($96.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-21
End Date: 2009-06-30
Contract Duration: 466 days
Daily Burn Rate: $207.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RADIO SET
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $96.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: RADIO SET Key points: 1. Significant contract value of $967.3 million for radio sets. 2. L3Harris Technologies, Inc. secured the award, indicating strong market presence. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract spans nearly two years, from March 2008 to June 2009.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests predictable costs. The award value of $967.3 million for 2 units over 466 days needs further breakdown to assess per-unit value against market benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The existence of two bids suggests a reasonably competitive market for these radio sets.
Taxpayer Impact: Full and open competition generally leads to more efficient use of taxpayer funds by driving down prices through market forces.
Public Impact
Ensures critical communication equipment for the Department of the Navy. Supports advanced wireless communications technology manufacturing. Potential impact on military readiness and operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost breakdown.
- Limited competition with only two bids received.
- Contract duration could lead to price escalation risks.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
- Supports critical defense communication needs.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is crucial for national security and technological advancement, with benchmarks varying based on specific equipment complexity and volume.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as L3Harris Technologies, Inc. is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The firm fixed price contract type and full and open competition suggest a degree of oversight in the procurement process. However, detailed oversight of performance and adherence to specifications would be managed by the Department of the Navy.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition (only 2 bids).
- High implied per-unit cost requires further investigation.
- Contract duration may pose risks for price stability.
- Lack of small business participation noted.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.7 million to L3HARRIS TECHNOLOGIES, INC.. RADIO SET
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $96.7 million.
What is the period of performance?
Start: 2008-03-21. End: 2009-06-30.
What was the specific nature of the radio sets procured and their intended use within the Department of the Navy?
The specific nature of the radio sets is not detailed in the provided data, beyond their classification under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). These are likely advanced communication devices critical for naval operations, potentially including tactical radios, secure communication systems, or shipboard communication platforms, supporting command and control, situational awareness, and inter-unit coordination.
Given the contract value and duration, what is the estimated per-unit cost, and how does it compare to industry benchmarks?
With a total award of $967,328,000 for 2 units over 466 days, the implied per-unit cost is approximately $483,664,000. This figure is exceptionally high and likely represents a contract for highly specialized, complex systems rather than individual radios. Without specific details on the 'units' (e.g., systems, platforms), a direct comparison to industry benchmarks for standard radio sets is not feasible. Further clarification on the 'units' is required for a meaningful cost assessment.
What were the primary factors that led to only two bids being submitted for this substantial contract?
The limited number of bids (two) could stem from several factors. The specialized nature of the radio sets may restrict the number of qualified manufacturers. High entry barriers, such as stringent technical requirements, security clearances, or existing relationships with the Department of Defense, could also limit the bidder pool. Furthermore, the significant contract value might deter smaller companies, leaving only major defense contractors able to compete.
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: FULL AND OPEN COMPETITION
Solicitation ID: N6600107R0054
Offers Received: 2
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: $96,732,800
Exercised Options: $96,732,800
Current Obligation: $96,732,800
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600107D0054
IDV Type: IDC
Timeline
Start Date: 2008-03-21
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2008-09-29
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