DoD's $107M TACSAT Radio Systems contract awarded to L3Harris Technologies, Inc. with no competition
Contract Overview
Contract Amount: $107,184,939 ($107.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-04-13
End Date: 2011-12-01
Contract Duration: 597 days
Daily Burn Rate: $179.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/PRC-117F TACTICAL SATELITE (TACSAT) RADIO SYSTEMS
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: AN/PRC-117F TACTICAL SATELITE (TACSAT) RADIO SYSTEMS Key points: 1. The contract value of over $107 million for tactical satellite radio systems represents a significant investment in communication capabilities. 2. The sole-source award to L3Harris Technologies, Inc. raises questions about the extent of market research and potential for competitive pricing. 3. The duration of the contract (597 days) suggests a need for ongoing support or a phased delivery of equipment. 4. The fixed-price contract type aims to control costs, but the lack of competition may have limited price discovery. 5. The absence of small business set-asides indicates that this contract was not specifically targeted to support small business participation. 6. The procurement falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without comparable sole-source awards for similar tactical satellite radio systems. The firm fixed-price contract type suggests an attempt to cap costs, but the absence of competition means there's no direct price comparison to assess if the $107 million represents a fair market value. Further analysis would require understanding the specific technical requirements and the availability of alternative solutions in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, Inc., was solicited. This typically occurs when a unique capability is required, or when only one source is capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the requirement, there is less assurance that the government secured the most cost-effective solution available in the market.
Public Impact
The primary beneficiaries are the Department of the Army and its personnel, who will receive enhanced tactical satellite communication capabilities. The contract delivers AN/PRC-117F TACTICAL SATELITE (TACSAT) RADIO SYSTEMS, crucial for secure and reliable battlefield communications. The geographic impact is likely widespread, supporting Army operations across various theaters of deployment. Workforce implications may include sustainment, training, and integration support for the new radio systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher prices than a competitively awarded contract.
- Sole-source awards can limit innovation by not encouraging new entrants or alternative solutions.
- Dependence on a single contractor for critical communication systems can pose supply chain risks.
- The absence of small business participation might miss opportunities to foster growth in that sector.
Positive Signals
- Firm fixed-price contract type helps to establish cost certainty for the government.
- Awarding to an established contractor like L3Harris Technologies, Inc. may ensure a certain level of quality and reliability.
- The specific system (AN/PRC-117F) is a known quantity, potentially reducing technical risks.
Sector Analysis
The defense communications sector is characterized by high technological barriers to entry and significant government investment. Contracts in this area often involve specialized equipment like tactical satellite radios, which are critical for military operations. The market size for such systems is substantial, driven by ongoing modernization efforts and the need for secure, interoperable communication solutions. L3Harris Technologies, Inc. is a major player in this space, and this contract represents a significant award within their portfolio.
Small Business Impact
This contract does not appear to have included a small business set-aside. The award to L3Harris Technologies, Inc., a large business, suggests that subcontracting opportunities for small businesses may exist, but they are not guaranteed or mandated by the primary contract structure. The impact on the small business ecosystem is neutral to potentially negative if competitive opportunities were foregone.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is limited by the sole-source nature of the award, but contract details and performance metrics are usually subject to internal review and reporting requirements.
Related Government Programs
- Tactical Radio Systems Procurement
- Satellite Communications Equipment
- Department of Defense Communication Modernization
- AN/PRC Radio Family
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited market research evidence
Tags
defense, department-of-defense, department-of-the-army, tactical-satellite-radio, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, l3harris-technologies-inc, sole-source, firm-fixed-price, communications-equipment, new-york, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to L3HARRIS TECHNOLOGIES, INC.. AN/PRC-117F TACTICAL SATELITE (TACSAT) RADIO SYSTEMS
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 Army).
What is the total obligated amount?
The obligated amount is $107.2 million.
What is the period of performance?
Start: 2010-04-13. End: 2011-12-01.
What is the track record of L3Harris Technologies, Inc. in delivering similar tactical satellite radio systems to the DoD?
L3Harris Technologies, Inc. has a long-standing history and significant experience in providing advanced communication systems, including tactical radios, to the Department of Defense and other government agencies. They are known for their expertise in areas such as secure communications, satellite technology, and radio frequency systems. The AN/PRC-117F series itself is a well-established platform that L3Harris has been involved with, indicating a strong familiarity with the technology and its operational requirements. Their track record generally suggests a capability to deliver complex communication solutions, though specific performance on individual contracts can vary and would require detailed review of past performance reports and delivery histories.
How does the awarded amount of $107 million compare to similar tactical satellite radio system procurements?
Direct comparison of the $107 million award is difficult without knowing the exact quantity and specific configuration of the AN/PRC-117F systems procured. However, given the nature of tactical satellite radio systems, which are sophisticated and often custom-engineered, this figure is within the expected range for a significant sole-source procurement of such equipment. Sole-source awards, by their nature, lack direct price benchmarks from competing offers. To assess value, one would need to compare the unit cost implied by this contract against historical sole-source awards for similar systems or against internal cost estimates if available. The lack of competition means a definitive 'fairness' assessment is challenging without more granular data.
What are the primary risks associated with this sole-source award for tactical satellite radio systems?
The primary risk associated with this sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, L3Harris Technologies, Inc. may not have been incentivized to offer the lowest possible price. Another risk is the potential for reduced innovation, as the government is not benefiting from alternative solutions or technological advancements that might have been proposed by other vendors. Furthermore, reliance on a single supplier for critical communication equipment can create vulnerabilities in the supply chain and limit flexibility if the contractor faces production issues or decides to discontinue a product line.
How effective are AN/PRC-117F TACSAT radio systems in meeting modern battlefield communication needs?
The AN/PRC-117F is a family of multiband manpack radios designed to provide tactical satellite communications capabilities. These systems are generally considered effective for providing beyond-line-of-sight (BLOS) voice and data communications in various operational environments. They support multiple waveforms and encryption standards, crucial for secure battlefield operations. However, modern battlefield communication needs are constantly evolving, with increasing demands for higher bandwidth, greater network integration, and enhanced cybersecurity. While the AN/PRC-117F has been a workhorse, newer generations of radios and integrated communication systems may offer more advanced capabilities. The effectiveness of this specific procurement depends on how well these systems integrate with the Army's broader network-centric warfare strategy and whether they meet current and near-future operational requirements.
What are the historical spending patterns for tactical satellite radio systems by the Department of the Army?
Historical spending patterns for tactical satellite radio systems by the Department of the Army typically show consistent investment in communication modernization and sustainment. Procurements often involve multiple contract vehicles, including competitive bids for new systems and sole-source or limited competition awards for upgrades, sustainment, and specialized variants. Spending can fluctuate based on operational tempo, technological refresh cycles, and specific program requirements. The Army has historically relied on systems like the AN/PRC series for decades, indicating a sustained need and budget allocation for such capabilities. Analyzing past contracts for the AN/PRC-117 family and its predecessors would reveal trends in contract values, award types, and contractor dominance over time.
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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $107,184,939
Exercised Options: $107,184,939
Current Obligation: $107,184,939
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T09DK002
IDV Type: IDC
Timeline
Start Date: 2010-04-13
Current End Date: 2011-12-01
Potential End Date: 2011-12-01 00:00:00
Last Modified: 2011-10-03
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