DoD Awards L3Harris $197M for 2.1 Production Systems, Printed Circuit Assembly Manufacturing
Contract Overview
Contract Amount: $196,818,258 ($196.8M)
Contractor: L3harris Nexgen Communications LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-13
End Date: 2013-10-02
Contract Duration: 2,364 days
Daily Burn Rate: $83.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASIC AWARD OF THE 2.1 PRODUCTION SYSTEMS TAS::97 0100::TAS
Place of Performance
Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03063
Plain-Language Summary
Department of Defense obligated $196.8 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: BASIC AWARD OF THE 2.1 PRODUCTION SYSTEMS TAS::97 0100::TAS Key points: 1. Significant award to L3Harris for critical production systems. 2. Focus on Printed Circuit Assembly manufacturing indicates a key technology area. 3. Potential for long-term sustainment and follow-on contracts. 4. Firm Fixed Price contract type aims to control costs. 5. No small business participation noted in this prime contract.
Value Assessment
Rating: good
The $196.8M award is substantial for printed circuit assembly manufacturing. Benchmarking against similar complex electronic assembly contracts would be necessary for a precise value assessment, but the scale suggests a significant procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though specific bid details are not provided.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this significant defense procurement.
Public Impact
Ensures continued production of critical 2.1 systems for the Department of Defense. Supports advanced manufacturing capabilities in the electronics sector. Impacts the supply chain for defense-related electronic assemblies. Highlights the importance of domestic manufacturing for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business prime participation.
- Long contract duration (2364 days) may present scope creep risks.
- Firm Fixed Price can be risky if unforeseen technical challenges arise.
Positive Signals
- Awarded under full and open competition.
- Significant investment in critical defense systems.
- Clear contract type (FFP) for cost control.
Sector Analysis
This award falls within the Defense sector, specifically related to electronic assembly manufacturing. Spending benchmarks for similar complex electronic systems can vary widely, but $197M represents a substantial investment in production capabilities.
Small Business Impact
The prime contract was not awarded to a small business. Further analysis would be needed to determine if small businesses are involved as subcontractors on this large award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating established oversight for this significant defense procurement. The firm fixed price structure provides a degree of cost accountability.
Related Government Programs
- Printed Circuit Assembly (Electronic Assembly) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for technology obsolescence over the contract life.
- Dependence on a single prime contractor for critical production.
- Limited visibility into subcontractor performance and small business utilization.
- Risk of cost overruns if unforeseen technical issues arise in FFP contract.
Tags
printed-circuit-assembly-electronic-asse, department-of-defense, nh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.8 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. BASIC AWARD OF THE 2.1 PRODUCTION SYSTEMS TAS::97 0100::TAS
Who is the contractor on this award?
The obligated recipient is L3HARRIS NEXGEN COMMUNICATIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $196.8 million.
What is the period of performance?
Start: 2007-04-13. End: 2013-10-02.
What is the specific nature of the '2.1 Production Systems' and their criticality to defense operations?
The provided data does not specify the exact function or criticality of the '2.1 Production Systems.' Further investigation into the contract's statement of work or related defense documents would be required to understand their operational role and why this specific electronic assembly manufacturing capability is being procured at this scale.
How does the $197M award compare to historical spending on similar electronic assembly manufacturing contracts?
Without access to a comprehensive database of historical contract values for comparable electronic assembly manufacturing, a direct comparison is difficult. However, $197M is a significant sum, suggesting either a large quantity of units, a highly complex assembly process, or a long-term production requirement for these systems.
What are the potential risks associated with the long contract duration (2364 days) and firm fixed price structure?
A long duration with a firm fixed price can expose the contractor to risks if material costs escalate significantly or unforeseen technical challenges arise during production. Conversely, it protects the government from cost overruns if the contractor manages risks effectively. The government's risk is primarily tied to potential contractor performance issues or obsolescence of the technology over the contract's life.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Printed Circuit Assembly (Electronic Assembly) Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N0002407R6311
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 44965 AVIATION DR STE 400, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $476,548,948
Exercised Options: $196,830,747
Current Obligation: $196,818,258
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-13
Current End Date: 2013-10-02
Potential End Date: 2013-10-02 00:00:00
Last Modified: 2019-02-23
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