DoD's $16.9M contract for electronics and communication equipment awarded to Condor Systems, Inc. with no competition

Contract Overview

Contract Amount: $16,941,389 ($16.9M)

Contractor: L3harris Nexgen Communications LLC

Awarding Agency: Department of Defense

Start Date: 2001-09-28

End Date: 2005-09-30

Contract Duration: 1,463 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200112!004819!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CH205 !A!N!*!N! !20010928!20030630!033178765!033178765!033178765!N!CONDOR SYSTEMS, INC !18705 MADRONE PARKWAY !MORGAN HILL !CA!95037!72016!111!06!SIMI VALLEY !VENTURA !CALIFORNIA!+000009292368!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !1GHT!SHORTSTOP !335999!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1A!Z!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03063

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: 200112!004819!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CH205 !A!N!*!N! !20010928!20030630!033178765!033178765!033178765!N!CONDOR SYSTEMS, INC !18705 MADRONE PARKWAY !MORGAN HILL !CA!95037!72016!111!06!SIMI VALLEY !VENTU… Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential overpayment and lack of market-driven pricing. 2. The duration of the contract (over 4 years) suggests a significant need for the specified electronics and communication equipment. 3. The absence of competition limits transparency and potentially reduces the government's ability to secure the best value. 4. The contract falls under the 'Electronics and Communication' sector, indicating a focus on specialized equipment. 5. The award to a single contractor without competition may indicate a lack of available or qualified suppliers in the market for this specific need.

Value Assessment

Rating: questionable

The total award amount of $16,941,389.32 for electronics and communication equipment over a period of approximately four years warrants scrutiny due to the lack of competitive bidding. Without comparable contract data or a competitive process, it is difficult to benchmark the value for money. The government may have paid a premium compared to what could have been achieved in a competitive environment. Further analysis would be needed to assess if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. This indicates that the agency determined only one responsible source was capable of providing the required supplies or services. The lack of competition means there were no other bidders to compare against, and the government did not benefit from the price discovery mechanisms inherent in a competitive procurement process.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying more than necessary. Without competitive pressure, the contractor has less incentive to offer the lowest possible price, potentially leading to inefficient use of public funds.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense requiring specialized electronics and communication systems. The contract delivers essential electronic components and communication capabilities, crucial for operational readiness and command and control. The geographic impact is primarily tied to the Department of Defense's operational locations, which could be domestic or international. Workforce implications may include specialized technical roles for the installation, maintenance, and operation of the supplied equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to no-bid award.
Potential for contractor lock-in if alternative solutions are not explored.
Difficulty in assessing true market value without competitive benchmarks.

Positive Signals

Contract addresses a specific, potentially unique, need within the Department of Defense.
Award to an established entity (Condor Systems, Inc.) may suggest prior experience or capability.
The contract duration indicates a sustained requirement for these critical systems.

Sector Analysis

This contract falls within the broader 'Electronics and Communication' sector, which is a critical component of national defense and technological infrastructure. The market for such specialized equipment is often characterized by high barriers to entry due to research and development costs, intellectual property, and stringent performance requirements. Comparable spending benchmarks are difficult to establish without knowing the exact specifications, but significant government investment in defense electronics is common.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting goals. The award was made directly to Condor Systems, Inc. without mention of small business participation. This suggests that small businesses may not have been a primary consideration in this specific procurement, or that the prime contractor was deemed the only capable source.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and oversight mechanisms, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures would be defined by the contract terms, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award, but contract award data is generally made public through federal procurement databases.

Related Government Programs

Department of Defense Procurement
Electronics and Communication Systems
Sole-Source Contracts
Defense Contracting

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. 200112!004819!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CH205 !A!N!*!N! !20010928!20030630!033178765!033178765!033178765!N!CONDOR SYSTEMS, INC !18705 MADRONE PARKWAY !MORGAN HILL !CA!95037!72016!111!06!SIMI VALLEY !VENTURA !CALIFORNIA!+000009292368!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !1GHT!SHORTSTOP !335999!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is L3HARRIS NEXGEN COMMUNICATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2001-09-28. End: 2005-09-30.

What specific electronic and communication capabilities does this contract procure, and why was it deemed necessary for a sole-source award?

The contract specifies 'ELECTRONICS AND COMMUNICATION EQUIPMENT' under the National Stock Number (NSN) 335999, which covers 'All Other Miscellaneous Electrical Equipment and Component Manufacturing.' The specific capabilities procured are not detailed in the provided data beyond this broad classification. A sole-source award typically requires a justification, such as the existence of unique capabilities held by only one contractor, urgent and compelling needs where competition is impractical, or when the contract is a follow-on to a previously competed effort where only one source is deemed viable. Without the specific justification document, the precise reasons for the sole-source award remain unclear, but it implies that the agency determined Condor Systems, Inc. was the only entity capable of meeting the requirement at that time.

How does the $16.9 million contract value compare to similar electronics and communication procurements by the DoD?

Directly comparing the $16.9 million value is challenging without knowing the precise nature and quantity of the electronics and communication equipment procured. The NSN 335999 is very broad. However, the Department of Defense frequently awards large contracts for electronics and communication systems, often in the tens or hundreds of millions of dollars, especially for advanced or specialized systems. The fact that this was a sole-source award means that a direct price-to-price comparison with competitively awarded contracts for similar items is not feasible. To assess value, one would need to compare the unit prices (if known) against industry benchmarks or historical pricing for comparable components, adjusted for inflation and specific technical requirements. The lack of competition inherently makes value assessment more difficult.

What is the track record of Condor Systems, Inc. in fulfilling government contracts, particularly within the defense sector?

Condor Systems, Inc. was awarded this contract in 2001. Information on their broader track record would require accessing historical contract databases beyond the provided snippet. However, the award of a $16.9 million contract, even on a sole-source basis, suggests they possessed capabilities deemed necessary by the Department of Defense at that time. Further investigation into their contract history, including past performance reviews, on-time delivery rates, and any disputes or terminations, would be necessary to fully assess their track record. Given the contract's award date, it's also important to note that company status and capabilities can change significantly over time.

What are the potential risks associated with awarding a contract of this magnitude without competition?

The primary risks associated with awarding a contract of this magnitude without competition include: 1. **Higher Costs:** The government may pay a premium because there is no competitive pressure to drive down prices. 2. **Reduced Innovation:** A lack of competition can stifle innovation as the contractor may have less incentive to develop more cost-effective or advanced solutions. 3. **Limited Transparency:** Sole-source awards offer less transparency into the pricing structure and the justification for the chosen contractor. 4. **Potential for Poor Performance:** While not guaranteed, the absence of competitive alternatives can sometimes lead to complacency in performance or quality. 5. **Contractor Lock-in:** The agency might become dependent on the sole-source provider, making future transitions difficult or costly.

How has spending in the 'Electronics and Communication' sector for the Department of Defense evolved since this contract was awarded?

Spending in the 'Electronics and Communication' sector by the Department of Defense has generally increased significantly since 2001, driven by rapid technological advancements, evolving threats, and the increasing digitization of warfare. This includes substantial investments in areas like secure communications, electronic warfare, intelligence, surveillance, and reconnaissance (ISR) systems, and network-centric warfare capabilities. While this specific $16.9 million contract represents a small fraction of the overall DoD budget, the trend indicates a growing reliance on sophisticated electronic and communication systems. Subsequent procurements in this sector have likely seen higher price points due to inflation, technological upgrades, and increased demand for more complex solutions.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component 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

Address: 44965 AVIATION DR STE 400, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline