DoD Awards $74.5M for ALQ-211 AIDEWS to L3Harris, Raising Competition Concerns
Contract Overview
Contract Amount: $74,451,289 ($74.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-03-14
End Date: 2017-12-31
Contract Duration: 1,388 days
Daily Burn Rate: $53.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TURKEY ALQ-211(V) 9 AIDEWS
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $74.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TURKEY ALQ-211(V) 9 AIDEWS Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition may lead to suboptimal pricing. 3. Potential for higher costs due to sole-source nature. 4. Sector: Defense electronics and systems.
Value Assessment
Rating: questionable
The contract value of $74.5M for the ALQ-211 AIDEWS is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar electronic warfare systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning no other vendors were considered. This significantly limits price discovery and potentially inflates costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in higher prices than could be achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for critical defense electronic warfare systems. Limited visibility into the justification for sole-source award. Potential impact on the broader defense electronics market due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
Positive Signals
- Awarded to established vendor
- Supports critical defense capability
Sector Analysis
This contract falls within the Defense sector, specifically for electronic warfare systems. Spending benchmarks for similar systems are difficult to ascertain without competitive data, but sole-source awards often exceed market rates.
Small Business Impact
The data indicates no specific set-aside for small businesses. The sole-source nature of this large contract likely bypasses opportunities for small businesses to compete and contribute.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The justification for this award and subsequent performance monitoring by the Defense Contract Management Agency warrant close examination.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on justification
- No small business participation evident
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.5 million to L3HARRIS TECHNOLOGIES, INC.. TURKEY ALQ-211(V) 9 AIDEWS
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $74.5 million.
What is the period of performance?
Start: 2014-03-14. End: 2017-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without detailed documentation, it's impossible to confirm if alternative competitive strategies were explored or deemed infeasible. This lack of transparency raises concerns about potential missed opportunities for cost savings.
How does the unit cost of the ALQ-211 AIDEWS compare to similar electronic warfare systems procured competitively by the DoD?
Direct comparison is challenging due to the sole-source nature of this award. However, historical data and industry analysis suggest that sole-source procurements often result in higher per-unit costs compared to competitively awarded contracts. A thorough cost-benefit analysis and benchmarking against similar systems, where available, would be necessary to quantify any potential overpayment.
What is the long-term strategic impact of awarding significant defense contracts to single vendors without competition?
Long-term, relying on sole-source contracts can stifle innovation, reduce market competition, and potentially lead to vendor lock-in. This can increase long-term costs for the government and limit access to emerging technologies. It also raises concerns about the resilience of the defense industrial base if critical capabilities become concentrated in too few companies.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $74,451,289
Exercised Options: $74,451,289
Current Obligation: $74,451,289
Subaward Activity
Number of Subawards: 117
Total Subaward Amount: $62,745,007
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-03-14
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2021-11-03
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