DoD awards $103M for AN/VLQ-13 V2 upgrade kits, a sole-source contract to L3Harris

Contract Overview

Contract Amount: $103,000,905 ($103.0M)

Contractor: L3harris Nexgen Communications LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2014-06-30

Contract Duration: 1,004 days

Daily Burn Rate: $102.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/VLQ-13 V2( BAND C) UPGRADE KITS

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03063

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $103.0 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: AN/VLQ-13 V2( BAND C) UPGRADE KITS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract is for upgrade kits, suggesting a need for modernization of existing systems. 3. The firm-fixed-price structure shifts some risk to the contractor. 4. The duration of the contract is approximately 3 years. 5. The award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 6. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of the upgrade kits. Without competitive bids, it's difficult to ascertain if the $103 million represents a fair market price. The firm-fixed-price contract type provides some cost certainty for the government, but the lack of competition raises concerns about potential overpayment compared to a more open procurement process. Further analysis would require understanding the specific technical requirements and the cost breakdown of the upgrade kits.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Nexgen Communications LLC, was solicited. This approach is typically used when a unique capability is required, or when only one source is capable of meeting the government's needs. The lack of competition means there was no opportunity for price discovery through multiple bids, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is also reduced in a sole-source scenario.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units requiring the AN/VLQ-13 V2 electronic warfare system. The contract delivers critical upgrade kits to enhance the capabilities of existing electronic warfare systems. The geographic impact is likely concentrated within military installations and operational theaters where these systems are deployed. Workforce implications may include specialized technical roles for manufacturing, integration, and testing of the upgrade kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for the government.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for contractor lock-in given the specialized nature of the equipment.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor with likely experience in this domain.
Addresses a specific modernization need for critical defense systems.

Sector Analysis

The defense electronics sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Contracts for electronic warfare systems and upgrades are crucial for maintaining technological superiority. The market is often dominated by a few large prime contractors capable of meeting stringent military specifications. This contract for AN/VLQ-13 V2 upgrade kits fits within this specialized segment of the defense industrial base, focusing on maintaining and enhancing electronic warfare capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized equipment involved, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through a competitive set-aside. Further investigation into L3Harris's subcontracting plan would be needed to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and the Defense Contract Management Agency (DCMA). The firm-fixed-price contract type provides a degree of accountability for the contractor to deliver the specified upgrades within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Electronic Warfare Systems
Defense Electronics
Military Aircraft Systems
Naval Systems
Command, Control, Communications, Computers, and Intelligence (C4I)

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns due to non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $103.0 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. AN/VLQ-13 V2( BAND C) UPGRADE KITS

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 $103.0 million.

What is the period of performance?

Start: 2011-09-30. End: 2014-06-30.

What is the specific function and importance of the AN/VLQ-13 V2 system that necessitates these upgrade kits?

The AN/VLQ-13 V2 is an electronic warfare (EW) system designed to detect, identify, and counter enemy radar and communication signals. Its primary function is to protect aircraft and other platforms by jamming or deceiving enemy sensors and communication networks. The 'V2' designation likely indicates a specific version or iteration of the system. The upgrade kits are crucial for maintaining the system's effectiveness against evolving threats, ensuring it can continue to perform its vital role in electronic warfare operations. Without these upgrades, the system's ability to detect and counter modern threats could be significantly degraded, impacting mission success and platform survivability.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when a public exigency requires immediate delivery and no other source will suffice. For specialized defense systems like the AN/VLQ-13 V2, it's possible that L3Harris Nexgen Communications LLC is the sole developer or manufacturer of the original system, or possesses unique technical expertise and proprietary data necessary for the upgrades. The government may have determined that competing the contract would be impractical, excessively costly, or would result in unacceptable delays in fielding the necessary upgrades.

What is the historical spending trend for the AN/VLQ-13 V2 system and its upgrades?

Analyzing historical spending for the AN/VLQ-13 V2 system and its upgrades requires access to detailed contract databases. However, given that this is a sole-source award for upgrade kits valued at $103 million, it suggests a significant ongoing investment in this particular electronic warfare capability. Previous contracts for the AN/VLQ-13 V2 or its predecessors would likely show a pattern of procurement and sustainment spending. The current award indicates a continued commitment to modernizing this system, potentially reflecting an increase in the threat landscape or the obsolescence of older components. Without specific historical data, it's difficult to pinpoint exact trends, but the scale of this award suggests it's a program of considerable importance and investment.

What are the potential risks associated with a sole-source contract for critical defense systems?

The primary risk associated with sole-source contracts for critical defense systems is the lack of price competition, which can lead to higher costs for the government compared to a competitively awarded contract. This can result in less value for taxpayer money. Additionally, sole-source awards can reduce the government's leverage in negotiating terms and conditions. There's also a risk of contractor complacency or reduced incentive to innovate when competition is absent. Furthermore, reliance on a single supplier can create vulnerabilities if that supplier faces financial difficulties, production issues, or decides to exit the market. This can lead to supply chain disruptions and delays in critical system sustainment or upgrades.

How does this contract align with the Department of Defense's broader modernization and electronic warfare strategies?

This contract for AN/VLQ-13 V2 upgrade kits directly aligns with the Department of Defense's (DoD) ongoing efforts to modernize its platforms and maintain a technological edge in electronic warfare (EW). As threats evolve, EW capabilities must be continuously updated to remain effective. By investing in upgrades for existing systems, the DoD demonstrates a strategy of enhancing current assets rather than solely relying on the development of entirely new systems, which can be more time-consuming and costly. This approach allows for quicker deployment of improved capabilities and ensures that critical EW functions remain relevant against contemporary and future adversaries. The award underscores the strategic importance the DoD places on robust electronic warfare capabilities for mission success and force protection.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002411R6317

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $103,000,905

Exercised Options: $103,000,905

Current Obligation: $103,000,905

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline