DoD awards $109M contract for wireless communications equipment to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $109,135,756 ($109.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-09
End Date: 2026-10-31
Contract Duration: 1,332 days
Daily Burn Rate: $81.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MCHH
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $109.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MCHH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating ongoing program needs. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The duration of the contract extends over three years, suggesting a significant operational requirement. 5. The North American Industry Classification System (NAICS) code 334220 points to manufacturing of radio and television broadcasting and wireless communications equipment. 6. The awardee, L3Harris Technologies, Inc., is a major defense contractor, implying established capabilities. 7. The contract is not a small business set-aside, indicating it was open to all eligible bidders.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order against similar contracts is challenging without more detailed scope information. However, L3Harris Technologies is a large, established defense contractor, and the firm-fixed-price nature of the contract suggests that pricing was negotiated with cost risk borne by the contractor. The award amount of $109 million over approximately three years appears to be within a reasonable range for specialized wireless communications equipment for a major defense agency like the Department of the Navy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' solicitation. This means that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a competitive process was utilized to select the awardee, which generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best possible pricing and terms by allowing a wide range of qualified vendors to compete for the contract.
Public Impact
The Department of the Navy benefits from the acquisition of essential wireless communications equipment. This contract supports the operational readiness and communication capabilities of naval forces. The geographic impact is primarily within the United States, where the equipment will be utilized by the Navy. The contract supports jobs within L3Harris Technologies, Inc. and its supply chain, likely in manufacturing and engineering roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the exact nature of the wireless communications equipment and its intended use.
- Potential for cost overruns if the firm-fixed-price contract does not adequately account for all potential expenses.
- Dependence on a single large contractor for critical communication systems.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Firm-fixed-price contract shifts cost risk to the contractor.
- Awardee is a well-established defense contractor with proven capabilities.
- Contract duration suggests a sustained need and potential for long-term partnership.
Sector Analysis
The wireless communications equipment manufacturing sector is a critical component of the broader defense industrial base. Companies in this sector produce a wide range of products, from tactical radios to satellite communication systems. The market is characterized by significant R&D investment, stringent quality requirements, and a high degree of specialization. Spending in this area by defense agencies is substantial, reflecting the ongoing need for advanced and reliable communication technologies to maintain operational superiority.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless L3Harris Technologies voluntarily engages small businesses in its supply chain. The focus appears to be on securing specialized equipment from a large, capable prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of the equipment and its deployment may be sensitive.
Related Government Programs
- Department of Defense Communications Systems
- Naval C4ISR Systems
- Wireless Communication Technology Procurement
- Defense Manufacturing Contracts
Risk Flags
- Potential for technological obsolescence given the rapid evolution of wireless communications.
- Dependence on a single large contractor for critical systems.
- Lack of specific details on competition level (number of bidders).
Tags
defense, department-of-the-navy, l3harris-technologies, wireless-communications-equipment, manufacturing, firm-fixed-price, full-and-open-competition, delivery-order, dod, c4isr, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.1 million to L3HARRIS TECHNOLOGIES, INC.. MCHH
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 Navy).
What is the total obligated amount?
The obligated amount is $109.1 million.
What is the period of performance?
Start: 2023-03-09. End: 2026-10-31.
What is the specific type and intended use of the wireless communications equipment being procured?
The provided data indicates the contract falls under NAICS code 334220, which covers 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' While the awardee is L3Harris Technologies, Inc., a major defense contractor, and the agency is the Department of the Navy, the precise nature of the 'wireless communications equipment' is not detailed. It could range from tactical radios for ground troops and naval personnel to more complex networked communication systems, encrypted devices, or components for larger communication infrastructure. The intended use is likely to support the Navy's operational command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capabilities, ensuring secure and reliable data transmission in various operational environments.
How does the $109 million award compare to L3Harris Technologies' typical contract values for similar equipment?
Without access to L3Harris Technologies' detailed financial reports or a comprehensive database of their specific product line contracts, a direct comparison of this $109 million award to their typical values for similar wireless communications equipment is difficult. L3Harris is a large defense contractor with a broad portfolio, and contract values can vary significantly based on the complexity, quantity, and technological sophistication of the equipment. However, $109 million over approximately three years for specialized defense communication hardware is a substantial award, consistent with the scale of projects undertaken by major defense prime contractors. It suggests a significant procurement requirement by the Department of the Navy for this particular type of equipment.
What are the key performance indicators (KPIs) or quality assurance measures associated with this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this contract. However, as a firm-fixed-price contract awarded by the Department of the Navy, there are inherent expectations for performance and quality. The contract likely includes technical specifications, delivery schedules, and acceptance criteria that the contractor must meet. The Navy's quality assurance representatives (QARs) would typically be involved in inspecting the equipment to ensure it conforms to specifications before acceptance. Failure to meet these standards could result in contract remedies, including rejection of goods or financial penalties, depending on the contract's terms and conditions.
What is the historical spending pattern for wireless communications equipment by the Department of the Navy?
Analyzing the historical spending patterns for wireless communications equipment by the Department of the Navy requires access to extensive procurement databases and historical contract data. This specific award of $109 million is a single data point. To establish a pattern, one would need to examine spending over several fiscal years, identify major contracts for similar equipment, track the primary awardees, and understand the evolution of technology and requirements. Such an analysis could reveal trends in spending levels, shifts in technology focus (e.g., from legacy systems to more advanced networked or satellite-based communications), and the degree of competition over time. Without this broader dataset, it's impossible to definitively characterize the historical spending pattern based solely on this one award.
What are the potential risks associated with relying on L3Harris Technologies, Inc. for this critical communication equipment?
While L3Harris Technologies, Inc. is a reputable and experienced defense contractor, potential risks associated with relying on them for critical communication equipment include: 1) Supply Chain Disruptions: Like any large manufacturer, L3Harris could face disruptions in its own supply chain for components, potentially delaying deliveries. 2) Technological Obsolescence: The rapid pace of technological advancement in wireless communications means that the procured equipment could become outdated relatively quickly, requiring future upgrades or replacements. 3) Contractor Performance Issues: Although unlikely given their track record, unforeseen performance issues, quality control lapses, or cost overruns (despite the fixed-price nature) could still arise. 4) Concentration Risk: Over-reliance on a single large contractor for critical systems can create a concentration risk, making the Navy more vulnerable if that contractor experiences significant business challenges.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785421R2090
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,135,756
Exercised Options: $109,135,756
Current Obligation: $109,135,756
Actual Outlays: $7,388,780
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785422D2090
IDV Type: IDC
Timeline
Start Date: 2023-03-09
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-18
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