DoD's $103.5M HF MANPACK COMSEC contract awarded to L3Harris, raising questions about competition and value
Contract Overview
Contract Amount: $103,524,108 ($103.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-08-21
End Date: 2009-06-11
Contract Duration: 660 days
Daily Burn Rate: $156.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HF MANPACK COMSEC
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $103.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: HF MANPACK COMSEC Key points: 1. Significant contract value of $103.5 million for High Frequency Manpack Communications Security equipment. 2. Awarded to a single vendor, L3Harris Technologies, Inc., indicating potential lack of robust competition. 3. Contract duration spans from 2007 to 2009, suggesting older technology or long-term sustainment. 4. The 'NOT COMPETED' status is a key risk factor for taxpayer value.
Value Assessment
Rating: questionable
The contract value of $103.5 million for HF MANPACK COMSEC equipment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or if it was inflated due to a lack of alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was explicitly 'NOT COMPETED' and awarded sole-source to L3Harris Technologies, Inc. This significantly limits price discovery and potentially leads to higher costs for the government as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $103.5 million contract likely resulted in taxpayers paying a premium for the required communications security equipment.
Public Impact
Special Operations Command relies on this equipment for secure communications, impacting operational effectiveness. The sole-source award raises concerns about the government's ability to secure advanced communication technology at the best possible price. Long-term reliance on a single vendor could stifle innovation and create vendor lock-in for critical defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Older contract award date (2007)
Positive Signals
- Essential for Special Operations Command communications
- Firm Fixed Price contract type can provide cost certainty if priced competitively
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for national defense, but competitive procurement is essential to ensure cost-effectiveness for taxpayer-funded systems.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as it was a sole-source award to a large corporation, L3Harris Technologies, Inc. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in competitive sourcing strategies. Further oversight is needed to understand why this significant contract was not opened to a competitive bidding process, ensuring accountability for procurement decisions.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Technology may be outdated given the 2007 award date.
- Lack of transparency regarding the justification for 'NOT COMPETED'.
- No indication of small business participation.
- Significant contract value awarded without competitive bidding.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.5 million to L3HARRIS TECHNOLOGIES, INC.. HF MANPACK COMSEC
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 $103.5 million.
What is the period of performance?
Start: 2007-08-21. End: 2009-06-11.
What was the justification for the sole-source award of this $103.5 million contract, and were alternative solutions or vendors ever considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this $103.5 million contract, the specific justification from the Department of Defense and U.S. Special Operations Command is not provided in the data. Without this, it's impossible to determine if other vendors or solutions were evaluated or if the sole-source decision was fully warranted, impacting the assessment of overall value.
Given the sole-source nature and the 2007 award date, what is the risk of the technology being outdated and the price being non-competitive?
There is a significant risk that technology procured in 2007 may be outdated by current standards, especially in the rapidly evolving field of communications security. A sole-source award exacerbates this risk, as the government lacks the leverage of competition to ensure the price paid reflects current market value or to incentivize the vendor to offer updated technology. This could lead to both operational deficiencies and financial inefficiency for the taxpayer.
How effectively did this contract support the critical communication needs of U.S. Special Operations Command, and what was the long-term impact of this procurement strategy?
While the contract undoubtedly supplied necessary equipment, the sole-source nature raises questions about its long-term effectiveness and value. It's unclear if SOCOM received the most advanced or cost-effective solutions available. The lack of competition may have limited SOCOM's access to broader technological advancements and potentially set a precedent for future sole-source awards, impacting overall defense procurement efficiency.
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: $103,524,108
Exercised Options: $103,524,108
Current Obligation: $103,524,108
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222207D0008
IDV Type: IDC
Timeline
Start Date: 2007-08-21
Current End Date: 2009-06-11
Potential End Date: 2009-06-11 00:00:00
Last Modified: 2009-05-13
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