GSA awards $163M non-competitive contract for tactical radio systems to L3Harris Technologies
Contract Overview
Contract Amount: $163,116,743 ($163.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: General Services Administration
Start Date: 2009-09-29
End Date: 2014-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $89.3K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: A REQUIREMENT FOR THE ACQUISITION OF THE AN/PRC-117G TACTICAL RADIO SYSTEM, INSTALLATION KITS (VEHICULAR & FIXED), SPARE PARTS & PERFORMANCE-BASED SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $163.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: A REQUIREMENT FOR THE ACQUISITION OF THE AN/PRC-117G TACTICAL RADIO SYSTEM, INSTALLATION KITS (VEHICULAR & FIXED), SPARE PARTS & PERFORMANCE-BASED SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Performance-based services included, suggesting a focus on outcomes. 3. Long contract duration of 1827 days indicates a significant, ongoing need. 4. The acquisition supports critical tactical communication capabilities. 5. No small business set-aside was utilized for this award. 6. The contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its non-competitive nature and the specific nature of the tactical radio system. Without competing offers, it's difficult to ascertain if the $163 million price represents optimal value for money. The inclusion of performance-based services suggests an intent to ensure effective delivery, but the lack of competitive pressure on the base equipment cost raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a non-competitive delivery order, meaning L3Harris Technologies was the only source considered. The justification for a sole-source award typically involves unique capabilities or proprietary technology. The absence of a competitive bidding process means taxpayers did not benefit from potential price reductions that could arise from multiple vendors vying for the contract.
Taxpayer Impact: The lack of competition means the government likely paid a premium for the AN/PRC-117G tactical radio system and associated services, as there was no market pressure to drive down costs.
Public Impact
The primary beneficiaries are military and defense personnel requiring advanced tactical communication equipment. The contract delivers AN/PRC-117G tactical radio systems, installation kits, spare parts, and performance-based services. The geographic impact is likely global, supporting deployed forces. Workforce implications include the need for trained personnel to operate and maintain the systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of competition may reduce incentives for innovation and efficiency from the contractor.
- The long duration could lead to vendor lock-in and make future technology transitions more complex.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Performance-based services aim to ensure the delivery of desired outcomes.
- The acquisition addresses a critical need for tactical communication systems.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. The market for tactical communication systems is specialized, often dominated by a few key defense contractors. The value of this contract, at $163 million, represents a significant investment in this niche, likely reflecting the advanced technology and stringent requirements of military-grade equipment.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mentioned in the provided data. This means that the primary award went to a large business, and opportunities for small businesses to participate in fulfilling this specific requirement may be limited unless L3Harris Technologies voluntarily includes them in its supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the General Services Administration (GSA) and the relevant program office within the acquiring agency. Accountability measures are inherent in the Firm Fixed Price and performance-based aspects of the contract. Transparency is limited by the sole-source nature of the award, with less public information available compared to competitively bid contracts.
Related Government Programs
- Tactical Radio Systems
- Military Communications Equipment
- Defense Procurement
- Wireless Communications Manufacturing
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Tags
defense, tactical-radio, communications-equipment, l3harris-technologies, general-services-administration, non-competitive, sole-source, firm-fixed-price, performance-based, maryland, wireless-communications-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $163.1 million to L3HARRIS TECHNOLOGIES, INC.. A REQUIREMENT FOR THE ACQUISITION OF THE AN/PRC-117G TACTICAL RADIO SYSTEM, INSTALLATION KITS (VEHICULAR & FIXED), SPARE PARTS & PERFORMANCE-BASED SERVICES
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 $163.1 million.
What is the period of performance?
Start: 2009-09-29. End: 2014-09-30.
What is the track record of L3Harris Technologies with similar tactical radio systems contracts?
L3Harris Technologies, and its predecessor companies, have a long history of providing advanced communication systems to the U.S. military and allied nations. They are a major player in the defense electronics market, specializing in secure and resilient communication solutions. Their portfolio often includes software-defined radios, tactical networking, and electronic warfare systems. While specific details on past performance for the AN/PRC-117G variant are not provided here, the company's general experience suggests a strong capability in delivering complex radio systems. However, the sole-source nature of this particular award means that direct comparisons of their performance against competitors for this specific system are not publicly available.
How does the $163 million value compare to similar tactical radio system procurements?
Directly comparing the $163 million value is difficult without knowing the exact quantity of AN/PRC-117G systems, installation kits, and the scope of performance-based services included. Tactical radio systems, especially those designed for military-grade performance, security, and ruggedness, are inherently expensive. However, given the non-competitive nature of this award, it is plausible that the price may be higher than what could have been achieved through a competitive bidding process. Benchmarking would ideally involve comparing unit costs against other sole-source awards for similar systems or against publicly available pricing for commercial equivalents, adjusted for military specifications and support.
What are the primary risks associated with this sole-source contract?
The primary risks associated with this sole-source contract are financial and strategic. Financially, the government risks overpaying for the equipment and services due to the lack of competitive pressure, which could lead to suboptimal value for taxpayer money. Strategically, relying on a single source can create vendor lock-in, making it harder and more expensive to switch to newer technologies or alternative suppliers in the future. There's also a potential risk that without competitive incentives, the contractor might be less motivated to innovate or provide the most cost-effective solutions over the contract's lifespan.
How effective are performance-based services in ensuring the delivery of tactical radio systems?
Performance-based services (PBS) aim to improve contract effectiveness by focusing on desired outcomes rather than specific methods or deliverables. In the context of tactical radio systems, PBS could involve ensuring system uptime, meeting specific communication range or clarity metrics, or providing rapid repair and maintenance. When well-defined with measurable metrics and appropriate incentives/disincentives, PBS can enhance contractor accountability and ensure the government receives the intended value. However, the effectiveness hinges on the clarity and measurability of the performance standards and the government's ability to monitor and enforce them.
What are the historical spending patterns for tactical radio systems by the General Services Administration?
The General Services Administration (GSA) primarily acts as a procurement and management agency for the federal government, facilitating the acquisition of goods and services. While GSA manages numerous contracts, including those for telecommunications equipment, specific historical spending patterns for 'tactical radio systems' under GSA might be aggregated within broader categories like 'Communications Equipment' or 'Information Technology'. The data provided indicates a single, large non-competitive delivery order valued at $163 million. Without access to GSA's detailed procurement databases or specific reports on tactical radio spending, it's difficult to establish a comprehensive historical spending pattern solely from this data point.
What is the significance of the contract being awarded in 2009 for a system delivered until 2014?
The award date of September 29, 2009, and an end date of September 30, 2014, indicate a contract duration of approximately five years. This timeframe is significant for technology procurements, especially in the defense sector. It suggests that the AN/PRC-117G system was considered current and strategically important at the time of award, with a projected operational lifespan or support requirement extending over several years. The long duration also implies a substantial investment and a commitment to this particular technology, potentially delaying the adoption of newer systems during this period.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 02FM2190511
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $165,310,562
Exercised Options: $163,116,743
Current Obligation: $163,116,743
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0163N
IDV Type: FSS
Timeline
Start Date: 2009-09-29
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2020-05-22
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)