DoD Awards $27.8M to L3Harris for Saudi Arabia ITT Radios, Sole-Source
Contract Overview
Contract Amount: $27,840,078 ($27.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2015-10-23
Contract Duration: 2,338 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ITT RADIOS FOR SAUDI ARABIA SI-B-WXO
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818, UNITED STATES OF AMERICA
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $27.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ITT RADIOS FOR SAUDI ARABIA SI-B-WXO Key points: 1. Significant award to a single large business. 2. Sole-source procurement raises questions about price discovery. 3. Long contract duration (2009-2015) may indicate evolving needs or extended execution. 4. Radio and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $27.8M is difficult to assess without a per-unit cost or comparison to similar sole-source awards. The lack of competition inherently limits the ability to determine optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $27.8M contract suggests taxpayers may not have received the best possible price.
Public Impact
Award supports U.S. foreign military sales, impacting international relations. Procurement of specialized communication equipment for a key ally. Potential for technology transfer or integration challenges with allied systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation indicated
Positive Signals
- Supports foreign military sales
- Award to established defense contractor
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector can be highly specialized and driven by defense or national security needs, often involving complex technologies.
Small Business Impact
The data indicates no small business participation in this contract. This is common for large, specialized defense procurements awarded to prime contractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Further review of the justification for sole-sourcing would be beneficial.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- No small business participation
- Long contract duration
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, in, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.8 million to L3HARRIS TECHNOLOGIES, INC.. ITT RADIOS FOR SAUDI ARABIA SI-B-WXO
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 $27.8 million.
What is the period of performance?
Start: 2009-05-29. End: 2015-10-23.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The justification for a sole-source award is critical for understanding why competition was not pursued. Typically, this involves reasons like unique capabilities, urgent needs, or lack of available sources. Adequate documentation ensures transparency and accountability, demonstrating that the government explored all viable options before bypassing the competitive process.
How does the final price compare to initial estimates or benchmarks for similar sole-source procurements of communication equipment?
Comparing the final price of $27.8M to initial estimates or benchmarks for comparable sole-source deals is essential for assessing value. Without this context, it's difficult to determine if the government overpaid. Analyzing the pricing structure and profit margins, if available, can also shed light on the fairness of the cost.
What is the long-term strategic value and operational impact of these radios for the Saudi Arabian military?
The long-term value and impact depend on the radios' technological capabilities, interoperability with existing systems, and their role in Saudi Arabia's defense strategy. Understanding how these radios enhance communication, command and control, and overall operational effectiveness is key to evaluating the procurement's strategic success beyond the immediate transaction.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelis Inc. (UEI: 969316046)
Address: 1919 W COOK RD, FORT WAYNE, IN, 46818
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,840,078
Exercised Options: $27,840,078
Current Obligation: $27,840,078
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T08DD248
IDV Type: IDC
Timeline
Start Date: 2009-05-29
Current End Date: 2015-10-23
Potential End Date: 2015-10-23 00:00:00
Last Modified: 2015-03-25
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