DoD's $336M contract for radio and wireless equipment to L3Harris Technologies, Inc. awarded under full and open competition
Contract Overview
Contract Amount: $336,054,489 ($336.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-11-09
End Date: 2010-02-28
Contract Duration: 842 days
Daily Burn Rate: $399.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR RTS,VAAS, AND RFPAS FOR PM-TRCS
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $336.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: DELIVERY ORDER FOR RTS,VAAS, AND RFPAS FOR PM-TRCS Key points: 1. Contract awarded for radio, VAAS, and RFPAS systems, indicating a need for advanced communication capabilities. 2. The duration of the contract (842 days) suggests a significant, ongoing requirement for these systems. 3. Awarded to a single contractor, L3Harris Technologies, Inc., highlighting potential concentration in this specialized market. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The contract was awarded under full and open competition, suggesting a broad market search. 6. The North American Industry Classification System (NAICS) code 334220 points to the manufacturing of radio and television broadcasting and wireless communications equipment.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the systems procured (RTS, VAAS, RFPAS). However, the total value of approximately $336 million over roughly two years indicates a substantial investment in communication technology. The firm fixed-price structure suggests an attempt to control costs, but the absence of detailed performance metrics or comparisons to similar procurements makes a definitive value-for-money assessment difficult. Further analysis would require understanding the unit costs and capabilities of the delivered systems relative to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The fact that it resulted in an award to L3Harris Technologies, Inc. suggests that this company offered the best value among the competing bidders. The level of competition, while broad in its initial solicitation, ultimately led to a single award, which is typical for complex, specialized systems where only a few companies possess the necessary technical capabilities.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and technological solutions by leveraging market forces and encouraging multiple vendors to bid.
Public Impact
The primary beneficiaries are likely military personnel requiring advanced radio and wireless communication systems for operational effectiveness. The services delivered include the provision of Radio and Television Broadcasting and Wireless Communications Equipment. The geographic impact is likely global, supporting Department of Defense operations worldwide. Workforce implications may include jobs in manufacturing, engineering, and logistics at L3Harris Technologies and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if L3Harris is the sole provider of these specific systems.
- Reliance on a single contractor for critical communication infrastructure could pose a risk if the contractor faces financial or operational difficulties.
Positive Signals
- Firm fixed-price contract structure helps manage cost overruns.
- Awarded through full and open competition, suggesting a competitive process to select the best offer.
- The contract addresses a clear need for advanced communication systems, crucial for military operations.
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically focusing on the manufacturing of radio and wireless communications equipment. The market for such specialized defense communication systems is often characterized by a limited number of highly capable contractors. Spending in this area is driven by the need for secure, reliable, and advanced communication capabilities for military operations, often involving significant research and development investment by contractors.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While L3Harris Technologies, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on L3Harris's own subcontracting plan and the availability of small businesses capable of providing components or services for these specialized communication systems.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Communications Systems
- Radio and Wireless Equipment Procurement
- Military Communication Technology
- Department of Defense IT Spending
Risk Flags
- Potential for cost overruns if initial estimates were inaccurate, despite FFP.
- Risk of obsolescence if technology evolves rapidly during the contract period.
- Dependence on a single supplier for critical communication systems.
Tags
defense, department-of-defense, department-of-the-army, l3harris-technologies, firm-fixed-price, full-and-open-competition, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, communication-systems, wireless-technology, indiana, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $336.1 million to L3HARRIS TECHNOLOGIES, INC.. DELIVERY ORDER FOR RTS,VAAS, AND RFPAS FOR PM-TRCS
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 $336.1 million.
What is the period of performance?
Start: 2007-11-09. End: 2010-02-28.
What specific capabilities do RTS, VAAS, and RFPAS systems provide, and how do they compare to commercial off-the-shelf alternatives?
RTS likely refers to Radio Terminal Systems, VAAS could stand for Voice and Audio Acquisition Systems, and RFPAS might denote Radio Frequency Propagation Analysis Systems. These systems are specialized for military communication, offering features such as secure transmission, battlefield interoperability, and robust performance in harsh environments, which often exceed commercial capabilities. While commercial alternatives exist for some functions, they may lack the required security certifications, ruggedization, or integration with existing military networks. The specific functionalities and performance benchmarks for these systems would be detailed in the contract's technical specifications, which are not publicly available. A comparison would necessitate access to these specifications and market research on comparable military-grade communication solutions.
How does the $336 million contract value compare to historical spending on similar communication systems by the Department of Defense?
Comparing this $336 million contract to historical spending requires identifying comparable procurements for similar radio and wireless communication systems. The Department of Defense has a long history of investing in advanced communication technologies, with numerous contracts awarded over the years for tactical radios, satellite communication terminals, and network infrastructure. Without specific details on the exact nature and quantity of RTS, VAAS, and RFPAS systems procured, a precise historical comparison is difficult. However, given the duration and scope, this contract represents a significant investment. Trends in defense spending often show fluctuations based on technological advancements, geopolitical needs, and budget allocations. Analyzing past large-scale communication system procurements would provide context, but direct comparisons are limited by the proprietary nature of specific system capabilities and pricing.
What is L3Harris Technologies, Inc.'s track record with the Department of Defense, particularly in delivering complex communication systems?
L3Harris Technologies, Inc. (and its predecessor companies) has a substantial and long-standing track record of contracting with the Department of Defense, supplying a wide array of advanced technologies, including communication systems, electronic warfare capabilities, and sensor systems. They are a major defense contractor with extensive experience in developing, manufacturing, and integrating complex systems for military applications. Their history with the DoD includes numerous prime contracts, often awarded through competitive processes, for critical defense programs. While specific performance details for individual contracts are not always public, L3Harris's continued success in securing large DoD contracts suggests a generally positive performance history and a strong capability to meet the demanding requirements of military communication procurements.
What are the potential risks associated with a firm fixed-price contract for advanced communication equipment?
The primary risk associated with a firm fixed-price (FFP) contract for advanced communication equipment lies in the potential for the contractor to cut corners on quality or performance to maintain profitability if unforeseen technical challenges arise or if initial cost estimates were inaccurate. While FFP shifts cost risk to the contractor, it can also disincentivize innovation or scope adjustments if they are not explicitly managed through contract modifications. For the government, the risk is receiving a product that meets the minimum specifications but may not perform optimally or be easily upgradeable. Effective oversight and clear technical specifications are crucial to mitigate these risks and ensure the delivered systems meet the intended operational requirements and long-term value.
How does the competition level (full and open) influence the pricing and innovation for this type of specialized defense equipment?
A full and open competition process is designed to maximize competition by soliciting offers from all responsible sources, which generally leads to more competitive pricing as multiple vendors vie for the contract. This environment encourages innovation as companies strive to differentiate their offerings through superior technology, performance, or cost-effectiveness to win the award. For specialized defense equipment, while the pool of capable vendors might be limited, full and open competition ensures that the government explores all available options and secures the best possible value. It also provides a benchmark against which the awarded price can be assessed, and it can incentivize contractors to invest in R&D to maintain a competitive edge for future procurements.
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 Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ITT Corporation (UEI: 001216845)
Address: 1919 W COOK RD, FORT WAYNE, IN, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $336,054,489
Exercised Options: $336,054,489
Current Obligation: $336,054,489
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T05DJ101
IDV Type: IDC
Timeline
Start Date: 2007-11-09
Current End Date: 2010-02-28
Potential End Date: 2010-02-28 00:00:00
Last Modified: 2013-02-22
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