DoD's $34.7M contract for electronics and communication equipment awarded to Condor Systems Inc. in 1999
Contract Overview
Contract Amount: $34,686,703 ($34.7M)
Contractor: L3harris Nexgen Communications LLC
Awarding Agency: Department of Defense
Start Date: 1999-08-27
End Date: 2004-12-31
Contract Duration: 1,953 days
Daily Burn Rate: $17.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199911!2100!3938!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0799CH005 !A!*!* !19990827!20011231!033178765!033178765!033178765!N!1C2N9!CONDOR SYSTEMS INC !2133 SAMARITAN DR !SAN JOSE !CA!95124!72016!111!06!SIMI VALLEY !VENTURA !CALIFORNIA!0001!+000008513414!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !1GHT!SHORTSTOP !3699!3!*!*!*!B!A!*!D !N!J!1!001!N!1G!A!Y!A!* !* !N!B!*!A!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03063
Plain-Language Summary
Department of Defense obligated $34.7 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: 199911!2100!3938!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0799CH005 !A!*!* !19990827!20011231!033178765!033178765!033178765!N!1C2N9!CONDOR SYSTEMS INC !2133 SAMARITAN DR !SAN JOSE !CA!95124!72016!111!06!SIMI VALLEY !VENTUR… Key points: 1. Contract awarded for electronics and communication equipment, including measurement and testing capabilities. 2. The contract was a definitive contract with a firm fixed price. 3. Duration of the contract was 1953 days, spanning from August 1999 to December 2004. 4. The contract was not competed, raising questions about potential value for money. 5. The awarded amount was $34,686,703. 6. The contractor, Condor Systems Inc., was located in San Jose, California.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without competitive bidding data. As a sole-source award, there's no direct comparison to market rates or other offers. The firm fixed price structure suggests cost certainty for the government, but the lack of competition means the government may not have secured the best possible price. Benchmarking this against similar sole-source procurements for specialized electronics and communication systems would be necessary for a more thorough value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed contract.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. Without a bidding process, it's harder to ensure the government received the most cost-effective solution.
Public Impact
The Department of Defense benefited from the acquisition of specialized electronics and communication measurement capabilities. The contract supported the operational readiness and technological advancement of defense communication systems. The contract was executed by Condor Systems Inc., a company based in California, potentially impacting the local economy. The equipment procured likely supported military personnel involved in communications and electronics maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits price discovery and potentially increases costs for taxpayers.
- Sole-source awards require strong justification to ensure necessity and prevent potential contractor overreach.
- The specific nature of the 'quick reaction capability' equipment may indicate a niche market with limited suppliers.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- The contract was awarded to a specific entity, Condor Systems Inc., indicating a known supplier for these capabilities.
- The duration of the contract suggests a long-term need for the specialized equipment.
Sector Analysis
This contract falls within the Defense sector, specifically related to electronics and communication systems. The market for such specialized equipment can be niche, often involving advanced technology and specific performance requirements. Government spending in this area is critical for maintaining technological superiority and operational effectiveness. Comparable spending benchmarks would typically involve other DoD procurements for similar measurement, control, and testing equipment, often sourced from specialized defense contractors.
Small Business Impact
There is no indication that this contract involved small business set-asides or subcontracting requirements. As a sole-source award to a specific company, the focus was likely on the prime contractor's ability to meet the technical requirements rather than broader small business participation goals. Further analysis would be needed to determine if the prime contractor itself is a small business or if any subcontracting opportunities were mandated.
Oversight & Accountability
Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA). As a definitive contract, it would be subject to standard government oversight procedures, including performance monitoring and payment verification. Transparency is generally limited for sole-source awards, but contract details and performance would be recorded in federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Communications Equipment Procurement
- Electronics Measurement Systems
- Command and Control Systems
- Quick Reaction Capability Equipment
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Contractor financial stability concerns (historical)
Tags
defense, department-of-defense, electronics, communication-equipment, sole-source, definitive-contract, firm-fixed-price, condor-systems-inc, california, 1999, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.7 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. 199911!2100!3938!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0799CH005 !A!*!* !19990827!20011231!033178765!033178765!033178765!N!1C2N9!CONDOR SYSTEMS INC !2133 SAMARITAN DR !SAN JOSE !CA!95124!72016!111!06!SIMI VALLEY !VENTURA !CALIFORNIA!0001!+000008513414!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !1GHT!SHORTSTOP !3699!3!*!*!*!B!A!*!D !N!J!1!0
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 $34.7 million.
What is the period of performance?
Start: 1999-08-27. End: 2004-12-31.
What was the specific nature of the 'quick reaction capability' equipment procured under this contract?
The contract description mentions 'ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ', which translates to 'Electronics Countersurveillance, Counter-Countermeasures & Quick Reaction Capability Equipment'. This suggests the procurement involved specialized electronic systems designed for detecting and countering surveillance or countermeasures, and potentially rapid deployment or adaptation capabilities. Such equipment is crucial for maintaining operational security and situational awareness in dynamic defense environments. The 'quick reaction' aspect implies a need for equipment that can be quickly fielded or reconfigured to address emerging threats or operational requirements, often involving advanced signal processing and electronic warfare technologies.
Why was this contract awarded on a sole-source basis instead of being competed?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE SOURCE'. While the specific justification is not detailed in the data, sole-source awards are typically made when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if the original contract was a small business set-aside that was later modified. Without further documentation from the awarding agency (Department of Defense via DCMA), the precise reason remains speculative but points to a perceived lack of alternatives in the market for this specific equipment.
What is the track record of Condor Systems Inc. in fulfilling government contracts, particularly for defense electronics?
Condor Systems Inc. was a defense contractor specializing in electronic warfare and intelligence systems. Prior to this contract, they had a history of receiving awards from the Department of Defense for similar types of equipment. However, the company faced significant financial difficulties and ultimately filed for bankruptcy in the early 2000s. This financial instability could have impacted their ability to fully execute long-term contracts and may have been a factor in the contract's eventual modification or termination, although the provided data shows an end date of 2004. A deeper dive into their contract history would reveal specific performance metrics and any past issues.
How does the $34.7 million contract value compare to other DoD spending on similar electronics and communication equipment during that period?
Comparing this $34.7 million contract requires context regarding the specific type of 'quick reaction capability' equipment. If it involved highly specialized electronic warfare or advanced countermeasure systems, the price might be within a reasonable range for niche defense procurements. However, without detailed specifications and market analysis from 1999, a direct comparison is challenging. Generally, DoD spending on electronics and communication systems is vast, encompassing everything from basic radios to complex intelligence-gathering platforms. A contract of this size for specialized equipment would be considered moderate within the overall defense budget, but its value proposition hinges heavily on the criticality and uniqueness of the capabilities it provided.
What were the potential risks associated with awarding a contract of this magnitude on a sole-source basis?
The primary risk associated with a sole-source award of this magnitude ($34.7 million) is the potential for inflated pricing due to the lack of competitive pressure. The government may not have secured the best possible value for its money. Other risks include contractor performance issues, as there's less market incentive to maintain high standards when competition is absent. Furthermore, sole-source awards can stifle innovation by not encouraging new entrants or alternative solutions into the market. There's also a risk of perceived favoritism or impropriety, even if the award was justified, necessitating robust internal justification and oversight.
What was the duration of the contract and how did it align with the technological lifecycle of the procured equipment?
The contract had a duration of approximately 5 years and 4 months, from August 27, 1999, to December 31, 2004. For defense electronics and communication equipment, especially those involving 'quick reaction capabilities,' a 5-year lifecycle could be substantial. Technology in this field evolves rapidly. While the initial procurement might have addressed an immediate need, the equipment's technological relevance could diminish towards the end of the contract period. This duration suggests the initial need was for a stable, long-term capability, but it also raises questions about potential obsolescence and the need for future upgrades or replacements.
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 (UEI: 004203337)
Address: 44965 AVIATION DR STE 400, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1999-08-27
Current End Date: 2004-12-31
Potential End Date: 2004-12-31 00:00:00
Last Modified: 2018-11-28
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