DoD Spends $153M on AN/PVS-14 Night Vision Systems from Harris Corp
Contract Overview
Contract Amount: $153,295,611 ($153.3M)
Contractor: Harris Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-15
End Date: 2011-10-31
Contract Duration: 1,141 days
Daily Burn Rate: $134.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/PVS-14 SYSTEMS
Place of Performance
Location: ROANOKE, ROANOKE County, VIRGINIA, 24019, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $153.3 million to HARRIS CORPORATION for work described as: AN/PVS-14 SYSTEMS Key points: 1. Significant investment in critical night vision technology. 2. Sole awardee Harris Corporation dominates this specialized market. 3. Potential for price escalation due to limited competition. 4. Optical Instrument and Lens Manufacturing sector sees substantial DoD spending.
Value Assessment
Rating: fair
The total award value of $153.3M for AN/PVS-14 systems appears substantial. Without specific unit pricing or comparison to similar night vision devices, a precise value assessment is difficult. However, the duration and quantity suggest a significant procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the data indicates only one award was made, suggesting Harris Corporation may be the primary or sole supplier for this specific system.
Taxpayer Impact: Taxpayer funds are utilized for essential defense equipment. While competition was sought, the concentration of the award to a single entity warrants scrutiny to ensure competitive pricing was achieved.
Public Impact
Ensures U.S. Army personnel have advanced night vision capabilities. Supports a key defense contractor, Harris Corporation. Funds advanced manufacturing within the optical instrument sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of awards despite full and open competition.
- Lack of detailed cost breakdowns for unit pricing.
- Long contract duration could lead to price creep.
Positive Signals
- Procurement of critical defense technology.
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The Department of the Army's procurement of AN/PVS-14 systems falls within the defense sector, specifically related to advanced optical and electronic equipment. Spending benchmarks for such specialized night vision technology are difficult to ascertain publicly but are critical for maintaining military readiness.
Small Business Impact
The data does not indicate any specific subcontracting or participation by small businesses in this contract. The primary awardee, Harris Corporation, is a large defense contractor.
Oversight & Accountability
The contract was awarded by the Department of the Army, implying standard DoD oversight. The firm fixed price structure suggests a degree of cost control, but ongoing monitoring would be necessary to ensure performance and value.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee despite full and open competition.
- Lack of detailed cost breakdown.
- Long contract duration.
- Potential for vendor lock-in.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.3 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 $153.3 million.
What is the period of performance?
Start: 2008-09-15. End: 2011-10-31.
What was the average unit cost for the AN/PVS-14 systems under this contract, and how does it compare to industry benchmarks or previous procurements?
The provided data does not include the average unit cost or the total number of units procured, making a direct comparison impossible. To assess value, one would need to divide the total award amount ($153.3M) by the quantity of systems purchased. Benchmarking against similar night vision devices or historical DoD contracts would be crucial for a comprehensive value analysis.
Given the 'full and open competition' designation, why was there only one award, and what are the potential risks associated with this concentration of contract value?
While the contract was advertised openly, Harris Corporation may possess unique capabilities, existing infrastructure, or proprietary technology that made them the sole viable bidder or offeror. The risk lies in potential over-reliance on a single supplier, reduced leverage for future negotiations, and the possibility that competitive pricing was not fully realized if other potential bidders were deterred.
How effective have the AN/PVS-14 systems been in supporting Army operations, and what is the plan for sustainment and future upgrades?
The effectiveness of the AN/PVS-14 systems is critical for night operations and soldier safety. While this contract covers procurement, information on operational effectiveness, user feedback, and long-term sustainment plans is not included. Future upgrades or replacements would likely involve separate procurement actions, potentially subject to new competitive processes.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Exelis Inc. (UEI: 969316046)
Address: 7635 PLANTATION RD, ROANOKE, VA, 24019
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $153,295,611
Exercised Options: $153,295,611
Current Obligation: $153,295,611
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124Q05D0821
IDV Type: IDC
Timeline
Start Date: 2008-09-15
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2015-03-19
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