DoD Awards L3Harris $116M for NULKA Y Payloads Production Amidst Limited Competition
Contract Overview
Contract Amount: $115,960,638 ($116.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2027-12-31
Contract Duration: 2,283 days
Daily Burn Rate: $50.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NULKA Y PAYLOADS PRODUCTION
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $116.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: NULKA Y PAYLOADS PRODUCTION Key points: 1. Significant contract value of $115.96M for essential defense payloads. 2. Sole-source award to L3Harris Technologies, Inc. raises competition concerns. 3. Long contract duration (2021-2027) suggests ongoing program needs. 4. Focus on Search, Detection, Navigation systems highlights critical military capabilities.
Value Assessment
Rating: fair
The contract value of $115.96M is substantial for specialized payloads. Benchmarking is difficult without knowing the specific NULKA Y system's complexity and market alternatives, but the lack of competition suggests potential for higher pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to L3Harris Technologies, Inc. This limits price discovery and potentially increases costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition on this $116M contract may result in higher costs for taxpayers compared to a fully competed procurement.
Public Impact
Ensures continued availability of critical NULKA Y payloads for naval operations. Supports advanced navigation and detection capabilities for the U.S. Navy. Potential impact on defense industrial base innovation due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Critical defense system production
- Established contractor performance
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing of navigation and guidance systems. Spending in this area is critical for national security, and benchmarks often reflect high R&D and specialized manufacturing costs.
Small Business Impact
The award to L3Harris Technologies, Inc., a large prime contractor, does not appear to directly benefit small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this sole-source award.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to ensure L3Harris meets contract requirements and to monitor costs, especially given the sole-source nature of the award.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns due to lack of competitive pressure.
- Long-term dependency on a single supplier.
- Limited transparency into pricing justification.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.0 million to L3HARRIS TECHNOLOGIES, INC.. NULKA Y PAYLOADS PRODUCTION
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 $116.0 million.
What is the period of performance?
Start: 2021-09-30. End: 2027-12-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should have documented this justification. To ensure fair pricing, the agency may conduct should-cost analysis, benchmark against similar systems if available, or negotiate aggressively based on historical data and contractor cost submissions.
What are the long-term risks associated with relying on a single supplier for these critical payloads?
Long-term risks include potential supply chain disruptions if the sole supplier faces issues, lack of innovation due to absent competition, and escalating costs over time as the contractor faces no market pressure. It also creates a dependency that could be exploited or become a vulnerability if the contractor's strategic direction changes.
How does the production of NULKA Y payloads contribute to the overall effectiveness of naval operations?
NULKA Y payloads are crucial for the Search, Detection, and Navigation systems, directly enhancing the operational effectiveness of naval platforms. They provide essential situational awareness, targeting, and guidance capabilities, which are fundamental to mission success in complex maritime environments and contribute significantly to force protection and mission accomplishment.
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: N0002420R5525
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $119,580,262
Exercised Options: $115,960,638
Current Obligation: $115,960,638
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $58,312,519
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-30
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-19
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