DoD Awards L3Harris $111M for Iraqi Air Force EW Systems, Lacking Competition
Contract Overview
Contract Amount: $111,353,925 ($111.4M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-10-25
End Date: 2026-06-30
Contract Duration: 2,805 days
Daily Burn Rate: $39.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SYSTEMS (AIDEWS) (V)4 SHIP SETS, SPARES AND RELATED SERVICES IN SUPPORT OF THE IRAQI AIR FORCE.
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $111.4 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SYSTEMS (AIDEWS) (V)4 SHIP SETS, SPARES AND RELATED SERVICES IN SUPPORT OF THE IRAQI AIR FORCE. Key points: 1. Significant contract value of $111.35 million for advanced electronic warfare systems. 2. Sole-source award to L3Harris Technologies, Inc., indicating a lack of competitive bidding. 3. Risk of inflated pricing and reduced innovation due to the absence of competition. 4. The sector is critical for national defense and air force modernization.
Value Assessment
Rating: questionable
The contract's fixed-price incentive structure aims to control costs, but the lack of competition makes it difficult to benchmark pricing against similar contracts. Without competitive bids, it's hard to ascertain if the $111.35 million represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, Inc., was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Enhances the capabilities of the Iraqi Air Force, potentially improving regional security. Investment in advanced defense technology, crucial for modern air combat. Potential for technology transfer or reliance on a single supplier for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for overpricing without competitive benchmarks
- Long contract duration (through 2026)
Positive Signals
- Addresses critical defense needs for an allied air force
- Utilizes advanced electronic warfare technology
Sector Analysis
This contract falls within the Defense sector, specifically focusing on electronic warfare systems. Spending in this area is critical for maintaining air superiority and protecting forces. Benchmarks are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
The data indicates this contract was awarded to L3Harris Technologies, Inc., a large business. There is no indication of small business participation in this specific award, which is common for highly specialized defense systems.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable. The Department of the Air Force is responsible for ensuring accountability in this procurement.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Long-term supplier dependency
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.4 million to L3HARRIS TECHNOLOGIES, INC.. ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SYSTEMS (AIDEWS) (V)4 SHIP SETS, SPARES AND RELATED SERVICES IN SUPPORT OF THE IRAQI AIR FORCE.
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $111.4 million.
What is the period of performance?
Start: 2018-10-25. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's unclear if other companies could have provided similar systems or if a competitive process was deemed impractical. Oversight should verify the necessity of this approach to ensure taxpayer funds are used efficiently.
How will the government ensure fair pricing and value for money given the lack of competition?
Ensuring fair pricing in a sole-source contract relies heavily on robust cost analysis, benchmarking against similar (though not identical) systems, and negotiation expertise. The government should conduct thorough price reasonableness checks and potentially utilize independent cost estimates to validate L3Harris's proposed pricing. The fixed-price incentive structure offers some cost control if performance targets are met.
What are the long-term implications of relying on a single supplier for these critical electronic warfare systems?
Long-term reliance on a single supplier can create vendor lock-in, potentially leading to increased costs for sustainment, upgrades, and future procurements. It also poses a risk if the supplier faces financial difficulties or changes its business strategy. Diversification or strategic partnerships might be considered for future requirements to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852318R0027
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,353,925
Exercised Options: $111,353,925
Current Obligation: $111,353,925
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $14,135,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854017D0002
IDV Type: IDC
Timeline
Start Date: 2018-10-25
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-25
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