DoD awards $306M for M-ATV HF Radios to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $306,021,088 ($306.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-22
End Date: 2011-11-17
Contract Duration: 695 days
Daily Burn Rate: $440.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCUREMENT OF HF RADIOS IN SUPPORT OF M-ATV PROGRAM.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $306.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PROCUREMENT OF HF RADIOS IN SUPPORT OF M-ATV PROGRAM. Key points: 1. Significant contract value of $306 million for specialized communication equipment. 2. Sole-source award to L3Harris Technologies, Inc. raises questions about competition. 3. Potential risk associated with a single vendor for critical program components. 4. Spending in the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $306 million for HF radios is substantial. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess pricing against similar procurements. Benchmarking is challenging due to the specific nature of the equipment and its integration into the M-ATV program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and may result in higher costs compared to a competitive environment. The justification for the sole-source award is not detailed here.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost savings typically achieved through competitive bidding.
Public Impact
Ensures critical communication capabilities for the M-ATV vehicle program. Supports military operations by providing reliable HF radio systems. Potential for increased costs due to lack of competition. Impacts the market for specialized military communication equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for vendor lock-in
Positive Signals
- Supports critical M-ATV program
- Established vendor relationship
Sector Analysis
This procurement falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. The $306 million award represents a significant investment in specialized military communication technology, potentially influencing market dynamics for similar equipment.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not pursuing competitive bidding. Oversight should focus on ensuring the necessity of this approach and the reasonableness of the price paid.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Lack of detailed justification for sole-source award.
- Potential for inflated costs due to lack of competition.
- No indication of small business participation.
- Limited transparency on unit pricing and value for money.
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 $306.0 million to L3HARRIS TECHNOLOGIES, INC.. PROCUREMENT OF HF RADIOS IN SUPPORT OF M-ATV PROGRAM.
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 $306.0 million.
What is the period of performance?
Start: 2009-12-22. End: 2011-11-17.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data does not detail the specific justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review would require access to the contract's justification and approval (J&A) documentation to understand the rationale and confirm that competitive options were indeed not feasible or advantageous.
How does the unit cost of these HF radios compare to similar commercially available or previously procured military-grade HF radios?
Without specific unit cost data and benchmarks for comparable HF radios, a direct comparison is not possible. The total award of $306 million over 695 days (approximately 23 months) for an unspecified number of units makes unit cost calculation difficult. A detailed analysis would require breaking down the total cost by the number of units procured and comparing this to industry standards or historical pricing for similar capabilities.
What is the long-term strategic impact of relying on a single vendor for such critical communication components within the M-ATV program?
Sole-source reliance on L3Harris Technologies for these HF radios could create long-term strategic risks, including potential vendor lock-in, reduced negotiation leverage for future procurements, and a lack of incentive for the vendor to innovate or reduce costs. It also limits the government's ability to pivot to alternative technologies or suppliers if circumstances change, potentially impacting program sustainment and modernization efforts.
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: $306,021,088
Exercised Options: $306,021,088
Current Obligation: $306,021,088
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785405D7015
IDV Type: IDC
Timeline
Start Date: 2009-12-22
Current End Date: 2011-11-17
Potential End Date: 2011-11-17 00:00:00
Last Modified: 2011-02-07
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