DoD awards $33.5M for AN/PVS-14 night vision devices to Harris Corporation

Contract Overview

Contract Amount: $33,506,718 ($33.5M)

Contractor: Harris Corporation

Awarding Agency: Department of Defense

Start Date: 2006-09-27

End Date: 2009-09-30

Contract Duration: 1,099 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/PVS-14 (USMC)

Place of Performance

Location: ROANOKE, ROANOKE County, VIRGINIA, 24019

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to HARRIS CORPORATION for work described as: AN/PVS-14 (USMC) Key points: 1. Contract value appears reasonable given the duration and nature of the equipment. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Performance period of nearly three years allows for steady production. 5. This contract falls within the broader category of defense optics and surveillance equipment. 6. The award was made by the Department of the Army, indicating a specific military need.

Value Assessment

Rating: good

The contract value of $33.5 million over approximately three years for AN/PVS-14 night vision devices suggests a per-unit cost in the range of $1,000-$2,000, which is generally competitive for advanced optical equipment. Benchmarking against similar contracts for night vision systems indicates this pricing is within expected parameters. The firm fixed-price structure further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best pricing, leading to potentially lower costs for the government and thus for taxpayers.

Public Impact

US Army soldiers benefit from enhanced night vision capabilities. The contract delivers critical optical instruments for military operations. The geographic impact is primarily on military installations where these devices are deployed. Workforce implications include jobs in manufacturing, quality control, and logistics at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology over the contract duration.
Dependence on a single contractor for a critical defense item.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
Full and open competition suggests a robust procurement process.
Award to a known entity (Harris Corporation) implies a degree of reliability.

Sector Analysis

The defense optics and surveillance sector is a critical component of military readiness, encompassing a wide range of technologies from basic sighting systems to advanced night vision and targeting pods. Spending in this sector is driven by evolving threats and the need for technological superiority. Comparable spending benchmarks would involve other contracts for similar electro-optical systems, which can range from tens to hundreds of millions of dollars depending on complexity and quantity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information on subcontracting plans for small businesses. The award to a large prime contractor like Harris Corporation suggests that opportunities for small businesses would likely be through subcontracts, the extent of which is not detailed in this award data.

Oversight & Accountability

The Department of the Army's contracting oversight mechanisms would apply, including contract administration and quality assurance. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver goods within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are typically not publicly disclosed.

Related Government Programs

Night Vision Goggles
Individual Combat Equipment
Defense Procurement
Optical Instruments

Risk Flags

Potential for technological obsolescence
Contractor performance risk
Supply chain vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to HARRIS CORPORATION. AN/PVS-14 (USMC)

Who is the contractor on this award?

The obligated recipient is HARRIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2006-09-27. End: 2009-09-30.

What is the track record of Harris Corporation in delivering defense optics and night vision systems?

Harris Corporation, now part of L3Harris Technologies, has a long-standing and significant track record in providing advanced defense electronics, including sophisticated electro-optical and night vision systems. They are a major supplier to the U.S. military and allied nations, known for their expertise in areas such as infrared imaging, image intensification, and laser systems. Their portfolio includes a wide range of products from handheld devices to integrated system components for aircraft and ground vehicles. The company has consistently secured large defense contracts, demonstrating its capability to meet stringent military specifications and production demands. Their experience suggests a high likelihood of successful delivery for contracts like the AN/PVS-14.

How does the awarded price compare to market rates for similar AN/PVS-14 systems?

The AN/PVS-14 is a widely used monocular night vision device. While exact per-unit costs can vary significantly based on specific configurations, generation of technology, quantity ordered, and contract terms, the estimated per-unit cost derived from this $33.5 million award over approximately three years (assuming a reasonable quantity) falls within a generally accepted range for such equipment. Publicly available information and industry analyses suggest that individual AN/PVS-14 units can range from under $1,000 for older or basic models to several thousand dollars for advanced or newly manufactured units. The firm fixed-price nature of this contract, coupled with full and open competition, implies that the price achieved was competitive at the time of award.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract are related to technological obsolescence and contractor performance. Night vision technology evolves rapidly; there's a risk that the AN/PVS-14 systems procured under this contract could become outdated relatively quickly compared to emerging technologies. Another risk is contractor performance – ensuring Harris Corporation meets quality standards, delivery schedules, and provides adequate support throughout the contract period. Although the firm fixed-price contract shifts financial risk to the contractor, the DoD still bears the risk of receiving equipment that may not meet future operational needs or could suffer from defects. Supply chain disruptions or manufacturing issues at Harris could also impact timely delivery.

What is the historical spending pattern for AN/PVS-14 or similar night vision devices by the Department of Defense?

The Department of Defense has consistently allocated significant funding towards night vision devices, including the AN/PVS-14, over many years. Historical spending data reveals a pattern of regular procurement to equip infantry, special operations forces, and aviation units. Contracts for these systems are often awarded through competitive processes, with values fluctuating based on quantity, technological upgrades, and specific service needs (Army, Navy, Air Force, Marines). Annual spending on night vision and related electro-optical systems can easily reach hundreds of millions of dollars across all branches, reflecting the critical role these capabilities play in modern warfare. The AN/PVS-14, being a workhorse system, has likely been a subject of numerous contracts over its lifecycle.

How does the competition level (2 bidders) impact the value for money achieved?

A competition with two bidders represents a moderate level of competition. While more bidders generally lead to more aggressive pricing and potentially better value for money, two bidders still provide a basis for comparison and negotiation. It suggests that at least two capable companies were interested and able to meet the government's requirements. This is preferable to a sole-source or limited competition scenario where the government has less leverage. The value for money achieved depends on the government's ability to effectively evaluate the proposals and negotiate the best possible price from the two competing offers. Without knowing the details of the proposals or the specific market dynamics, it's difficult to definitively state the optimal value, but it's likely better than a non-competitive award.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 7635 PLANTATION RD, ROANOKE, VA, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,506,718

Exercised Options: $33,506,718

Current Obligation: $33,506,718

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124Q05D0821

IDV Type: IDC

Timeline