DoD's $174.6M AN/PVS-14 Night Vision Systems contract awarded to Harris Corporation shows fair value with 2 bidders

Contract Overview

Contract Amount: $174,664,413 ($174.7M)

Contractor: Harris Corporation

Awarding Agency: Department of Defense

Start Date: 2007-12-20

End Date: 2015-02-13

Contract Duration: 2,612 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/PVS-14 SYSTEMS

Place of Performance

Location: ROANOKE, ROANOKE County, VIRGINIA, 24019

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $174.7 million to HARRIS CORPORATION for work described as: AN/PVS-14 SYSTEMS Key points: 1. The contract value of $174.6 million for AN/PVS-14 systems represents a significant investment in night vision capabilities. 2. Competition dynamics indicate a healthy market with two bidders, suggesting potential for competitive pricing. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance context is crucial, as the reliability and effectiveness of these systems directly impact soldier safety and mission success. 5. The contract falls within the broader Defense sector, specifically supporting tactical equipment for ground forces. 6. The Department of the Army is the primary recipient of these critical night vision systems.

Value Assessment

Rating: fair

The total contract value of $174.6 million over its duration suggests a substantial investment. Benchmarking against similar night vision system procurements is challenging without more granular data on system specifications and quantities. However, the presence of two bidders in a full and open competition implies a degree of market price discovery. The average annual spend was approximately $21.8 million, which appears reasonable for specialized defense equipment of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Two bids were received, which suggests a moderate level of competition. While more bidders could potentially drive prices lower, two bidders still provide a basis for comparison and negotiation, preventing a sole-source scenario.

Taxpayer Impact: A full and open competition, even with two bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, leading to better value.

Public Impact

Soldiers in the Department of the Army benefit directly from enhanced situational awareness and operational capabilities provided by these night vision systems. The services delivered include the procurement of AN/PVS-14 systems, crucial for low-light and nighttime operations. The geographic impact is primarily within military installations and operational theaters where Army units are deployed. Workforce implications include the manufacturing and support roles associated with producing and maintaining advanced optical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of night vision technology given the rapid pace of technological advancement.
Dependence on a limited number of suppliers for specialized components could pose supply chain risks.
Ensuring consistent quality and performance across all delivered units is critical for operational effectiveness.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Awarding to a known entity like Harris Corporation, likely with a track record in defense contracting, can imply a level of reliability.
Full and open competition, even with two bidders, suggests a structured procurement process aimed at achieving best value.

Sector Analysis

The AN/PVS-14 systems fall under the broader defense industry, specifically within the electro-optical and infrared (EO/IR) market segment. This market is characterized by high technological barriers to entry and significant government procurement. Comparable spending benchmarks would involve other contracts for similar night vision devices or related optical equipment for military applications. The market size for military night vision is substantial, driven by ongoing global security needs.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of advanced defense electronics, prime contractors like Harris Corporation often rely on a complex supply chain. It is possible that small businesses could be involved as subcontractors, but this contract's structure does not explicitly prioritize their inclusion. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms for contracts of this magnitude, including contract performance monitoring, quality assurance inspections, and financial audits. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General investigations can be initiated if any irregularities or fraud are suspected.

Related Government Programs

Night Vision Goggles
Individual Soldier Systems
Tactical Optics
Department of Defense Procurement
Army Aviation Systems

Risk Flags

Technology Obsolescence Risk
Supply Chain Dependency
Performance Verification Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $174.7 million to HARRIS CORPORATION. AN/PVS-14 SYSTEMS

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 $174.7 million.

What is the period of performance?

Start: 2007-12-20. End: 2015-02-13.

What is the historical spending trend for AN/PVS-14 systems or similar night vision equipment by the Department of the Army?

Analyzing historical spending on AN/PVS-14 systems or comparable night vision equipment by the Department of the Army is crucial for understanding procurement patterns and budget allocation. While specific historical data for this exact contract is limited to its award value and duration, broader trends in defense spending on electro-optical systems can be inferred. Typically, such procurements are cyclical, influenced by modernization programs, operational tempo, and technological advancements. The Army consistently invests in night vision capabilities to maintain battlefield superiority in low-light conditions. Spending can fluctuate based on the urgency of replacement needs, upgrades to existing systems, and the introduction of new technologies. Without access to detailed historical contract databases or budget justifications, precise year-over-year spending figures for AN/PVS-14 systems are difficult to ascertain, but the consistent need for such equipment suggests ongoing, substantial investment within the defense budget.

How does the per-unit cost of the AN/PVS-14 systems under this contract compare to industry benchmarks or previous procurements?

Determining the precise per-unit cost for the AN/PVS-14 systems under this $174.6 million contract is challenging without knowing the exact quantity of units procured. The contract value represents the total expenditure over its period of performance. However, if we assume a hypothetical quantity, we could derive a per-unit cost for comparison. Industry benchmarks for AN/PVS-14 systems, which are widely used by military and law enforcement, can vary significantly based on configuration, manufacturer, and volume discounts. Historically, prices have ranged from several thousand dollars to upwards of $10,000 per unit. Given that this was a full and open competition with two bidders, the pricing is likely competitive within the market. To perform a robust comparison, one would need to access classified or proprietary pricing data, or compare against publicly available contract awards for similar quantities and specifications from the same or similar time periods.

What are the key performance metrics and reliability standards expected for the AN/PVS-14 systems procured under this contract?

The key performance metrics and reliability standards for AN/PVS-14 systems procured under this contract are critical for ensuring their effectiveness in demanding operational environments. While specific technical specifications are often sensitive, standard military requirements for such equipment typically include stringent criteria for image intensification, field of view, operational duration on battery power, resistance to environmental factors (e.g., shock, water, temperature extremes), and overall system durability. Reliability is paramount, often measured by Mean Time Between Failures (MTBF) rates. The AN/PVS-14 is designed for individual soldier use, meaning it must be robust enough to withstand the rigors of combat and field operations. The Department of Defense would have established detailed technical requirements and acceptance testing protocols within the contract to verify that the delivered systems meet or exceed these performance and reliability standards before final payment is made.

What is Harris Corporation's track record with supplying similar electro-optical or night vision systems to the U.S. military?

Harris Corporation, now part of L3Harris Technologies, has a long-standing and extensive track record of supplying advanced electro-optical and night vision systems to the U.S. military and other government agencies. They are a well-established defense contractor known for its expertise in areas such as communication systems, electronic warfare, and sensor technologies. Their portfolio often includes a range of night vision devices, targeting systems, and other optical equipment. Prior contracts with the Department of Defense for similar systems would demonstrate their capability to meet stringent military specifications, manage complex production, and deliver reliable equipment. The award of this significant AN/PVS-14 contract to Harris Corporation suggests they possess the necessary technical expertise, manufacturing capacity, and past performance record that met the Army's requirements and competitive evaluation criteria.

Are there any known risks associated with the technology or supply chain for the AN/PVS-14 systems?

Risks associated with the technology and supply chain for AN/PVS-14 systems are common for advanced defense electronics. Technologically, night vision capabilities are constantly evolving; there's a risk of procured systems becoming outdated relatively quickly as newer, more advanced technologies emerge. This necessitates careful lifecycle management and planning for future upgrades or replacements. Supply chain risks can include reliance on specialized components, such as image intensifier tubes, which may have limited sources or be subject to geopolitical factors affecting availability and cost. Furthermore, the manufacturing process for such high-precision optical equipment requires specialized facilities and skilled labor. Disruptions due to global events, trade restrictions, or the financial stability of key suppliers could impact delivery schedules and costs. The Department of Defense typically mitigates these risks through robust contract terms, supplier vetting, and contingency planning.

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: Exelis Inc. (UEI: 969316046)

Address: 7635 PLANTATION RD, ROANOKE, VA, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $174,664,413

Exercised Options: $174,664,413

Current Obligation: $174,664,413

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124Q05D0821

IDV Type: IDC

Timeline