GSA awards $130M for HF radios, with L3Harris Technologies securing the contract
Contract Overview
Contract Amount: $130,297,240 ($130.3M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: General Services Administration
Start Date: 2009-06-17
End Date: 2010-09-09
Contract Duration: 449 days
Daily Burn Rate: $290.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HF RADIOS AND ANCILLARY EQUIPMENT
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $130.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: HF RADIOS AND ANCILLARY EQUIPMENT Key points: 1. The contract value of $130.3 million represents a significant investment in critical communication equipment. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and market responsiveness. 3. Risk indicators are evaluated based on contract type, duration, and historical performance of the awardee. 4. Performance context is established by comparing this award to similar procurements for communication systems. 5. The sector positioning highlights the importance of reliable wireless communications equipment for federal agencies. 6. The firm-fixed-price structure aims to provide cost certainty for the government.
Value Assessment
Rating: good
The total award of $130.3 million for HF radios and ancillary equipment appears reasonable given the scope and duration. Benchmarking against similar large-scale procurements for specialized communication systems suggests that the pricing is within expected ranges. The firm-fixed-price contract type provides cost predictability, which is a positive indicator for value. Further analysis would involve comparing unit costs for specific radio models against market rates or other government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The specific number of bidders is not detailed, but a competitive process generally fosters better price discovery and encourages vendors to offer competitive terms. The use of a competitive delivery order suggests that the General Services Administration (GSA) leveraged existing contract vehicles or conducted a competitive solicitation to secure this equipment.
Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically drives down prices through market forces, ensuring that federal funds are used more efficiently.
Public Impact
Federal agencies requiring robust and reliable high-frequency (HF) radio communication systems are the primary beneficiaries. The contract delivers essential communication equipment, likely supporting national security, emergency response, and operational command and control. The geographic impact is potentially nationwide, as federal agencies operate across various locations. Workforce implications may include support for personnel involved in the deployment, maintenance, and operation of this communication technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 449 days, while not excessively long, requires careful monitoring to ensure timely delivery and performance.
- The specific nature of 'ancillary equipment' could introduce complexities if not clearly defined and managed.
Positive Signals
- Awarded as a competitive delivery order, suggesting a degree of market engagement and potential for favorable pricing.
- Firm-fixed-price contract type provides cost certainty and shifts risk to the contractor.
- L3Harris Technologies is a known entity in the defense and communications sector, implying a level of established capability.
Sector Analysis
The procurement falls within the broader Information Technology and Communications Equipment manufacturing sector, specifically focusing on wireless communication devices. This sector is characterized by rapid technological advancements and significant government spending due to national security and operational needs. The market for HF radios is specialized, serving critical communication requirements where other technologies may be less reliable or suitable. Comparable spending benchmarks would involve analyzing other large-scale awards for tactical and strategic communication systems.
Small Business Impact
The data indicates that small business participation was not a primary set-aside consideration for this specific contract (ss: false, sb: false). While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, L3Harris Technologies, may engage small businesses as subcontractors. The impact on the broader small business ecosystem would depend on the subcontracting plans and opportunities generated by this award.
Oversight & Accountability
Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically its Federal Acquisition Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified goods within agreed-upon pricing. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.
Related Government Programs
- Tactical Radio Systems
- Secure Communication Equipment
- Emergency Response Communications
- Defense Communications Infrastructure
- Wireless Network Equipment
Risk Flags
- Moderate risk of technological obsolescence due to contract duration.
- Potential for cost overruns or quality issues if contractor underbids FFP.
- Need for clear definition of 'ancillary equipment' to avoid scope disputes.
Tags
gsa, l3harris-technologies, maryland, competitive-delivery-order, large-contract, firm-fixed-price, communications-equipment, wireless-communications, defense-contracting, federal-acquisition-service
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $130.3 million to L3HARRIS TECHNOLOGIES, INC.. HF RADIOS AND ANCILLARY EQUIPMENT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $130.3 million.
What is the period of performance?
Start: 2009-06-17. End: 2010-09-09.
What is the historical spending pattern for HF radios and similar communication equipment by the General Services Administration?
Analyzing historical spending patterns for HF radios and similar communication equipment by the GSA requires access to detailed procurement data over several fiscal years. Generally, agencies like GSA procure such equipment to support various federal entities, often through indefinite-delivery/indefinite-quantity (IDIQ) contracts or specific delivery orders. Spending can fluctuate based on modernization needs, technological obsolescence, and specific agency requirements for enhanced or replacement systems. Without specific historical data for this exact category, it's difficult to provide precise figures. However, it's common for agencies to allocate significant budgets to ensure reliable communication capabilities, especially for defense, public safety, and critical infrastructure sectors. Trends might show an increase in spending during periods of heightened national security concerns or significant upgrades to existing communication networks. The $130.3 million award in 2009 suggests a substantial investment at that time, and understanding subsequent spending would reveal the ongoing commitment to this technology.
How does the unit cost of the HF radios procured under this contract compare to market rates or other federal contracts?
A precise comparison of unit costs for the HF radios procured under this $130.3 million contract to market rates or other federal contracts is challenging without specific details on the exact models, quantities, and configurations of the radios purchased. The provided data indicates a total award amount and contract type but lacks granular product information. Generally, federal agencies aim to achieve competitive pricing through various contracting mechanisms. If this was a competitive delivery order, it implies that the pricing was vetted against market conditions or other available bids. To perform a true benchmark, one would need to identify the specific radio systems (e.g., manufacturer part numbers, technical specifications) and compare their unit prices against publicly available commercial price lists, other GSA Schedule contracts, or similar Department of Defense procurements. Factors like volume discounts, included warranties, support services, and customization can significantly influence unit costs, making direct comparisons complex.
What is L3Harris Technologies' track record with similar federal communication equipment contracts?
L3Harris Technologies, and its predecessor companies, have a substantial track record in providing advanced communication systems, including radio and wireless equipment, to various U.S. federal agencies. Their portfolio often includes tactical radios, secure communication solutions, and integrated systems for defense and public safety applications. Historically, the company has been a significant player in large-scale government contracts, demonstrating capabilities in manufacturing, integration, and support for complex communication networks. Performance on past contracts can be assessed through contract databases and performance rating systems (like CPARS, if available), looking for indicators of on-time delivery, quality adherence, and overall customer satisfaction. Given their established presence, it is likely that L3Harris possesses the technical expertise and production capacity to fulfill contracts of this magnitude. However, a detailed review of their specific performance on prior HF radio or similar wireless equipment contracts would provide a more definitive assessment.
What are the potential risks associated with a firm-fixed-price contract for complex communication equipment?
While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks, particularly for complex procurements like advanced communication equipment. One primary risk is that the contractor may underestimate the costs associated with development, manufacturing, or integration, leading to potential quality compromises or delivery delays if they struggle to meet the fixed price. Conversely, if the contractor accurately anticipates higher costs and prices accordingly, the government might end up paying a premium if the contractor's actual costs are lower. For complex systems, scope creep can be a significant issue; if the government requires changes or upgrades not initially defined, managing these within an FFP structure can lead to disputes or costly change orders. Furthermore, if the technology is rapidly evolving, the fixed price might not account for necessary upgrades or adaptations, potentially resulting in outdated equipment by the time of delivery or requiring costly modifications.
How does the duration of this contract (449 days) impact the risk of technological obsolescence for the communication equipment?
A contract duration of 449 days (approximately 15 months) for the delivery of HF radios and ancillary equipment presents a moderate risk of technological obsolescence. While HF radio technology itself evolves more slowly than some other areas of electronics, the pace of advancement in digital signal processing, encryption, and networking capabilities can still be significant over a 15-month period. If the contract specifications are based on older standards or do not incorporate the latest technological enhancements, the delivered equipment might be less capable or interoperable with newer systems by the time it is fielded. To mitigate this risk, the contract specifications should be carefully defined to include current or near-future relevant technologies, and the procurement process should ensure that the selected equipment represents a robust and adaptable platform. Post-delivery, agencies often have strategies for managing technology refresh cycles to maintain operational effectiveness.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 02FM2190509
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 25
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $136,472,920
Exercised Options: $130,297,240
Current Obligation: $130,297,240
Parent Contract
Parent Award PIID: GS35F0163N
IDV Type: FSS
Timeline
Start Date: 2009-06-17
Current End Date: 2010-09-09
Potential End Date: 2010-09-09 00:00:00
Last Modified: 2012-07-17
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