DoD Awards L3Harris $126.8M for Shipboard Communications Systems, Ending 2025
Contract Overview
Contract Amount: $126,780,565 ($126.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-02-26
End Date: 2025-11-18
Contract Duration: 4,283 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ULV SHIPBOARD SCPC/DYNAMIC MODEM SYSTEM
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $126.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ULV SHIPBOARD SCPC/DYNAMIC MODEM SYSTEM Key points: 1. Contract value of $126.8 million awarded to L3Harris Technologies. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Risk appears moderate given the long contract duration and fixed-price structure. 4. Sector is primarily IT and Communications Equipment Manufacturing.
Value Assessment
Rating: good
The contract value of $126.8 million over approximately 10 years suggests a reasonable annual spend. Without specific unit details, direct per-unit cost comparison is difficult, but the fixed-price nature aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' indicates that multiple vendors were likely considered, promoting price discovery and potentially leading to a more competitive price. The definitive contract award suggests a structured procurement process.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense communication systems, with competition aiming for cost-effectiveness.
Public Impact
Ensures critical communication capabilities for naval operations. Supports advanced technology development in wireless communications. Impacts national security through reliable command and control systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (approx. 10 years) could lead to scope creep or evolving technology obsolescence.
- Fixed-price contract may not fully account for unforeseen technological advancements or material cost fluctuations.
- Sole reliance on L3Harris for this specific system could pose a risk if they face production issues.
Positive Signals
- Full and open competition suggests a competitive environment was sought.
- Fixed-price contract provides cost certainty for the government.
- Award to an established defense contractor indicates experience and capability.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar complex communication systems can vary widely based on technological sophistication and scale.
Small Business Impact
The data indicates the prime contractor is L3Harris Technologies, Inc., a large business. There is no explicit mention of small business participation in this award, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The definitive contract structure implies a level of oversight. However, the long duration necessitates ongoing monitoring to ensure performance, cost control, and adherence to specifications throughout the contract lifecycle.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration potentially leading to technology obsolescence.
- Fixed-price contract may not fully capture evolving technological needs.
- Lack of explicit small business participation noted.
- Potential for contractor lock-in due to specialized system.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $126.8 million to L3HARRIS TECHNOLOGIES, INC.. ULV SHIPBOARD SCPC/DYNAMIC MODEM SYSTEM
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 $126.8 million.
What is the period of performance?
Start: 2014-02-26. End: 2025-11-18.
What specific technological advancements does this system incorporate, and how does its performance compare to industry standards?
The system likely incorporates advanced secure communication protocols and potentially dynamic frequency hopping for enhanced security and reliability in contested environments. Benchmarking against industry standards would require detailed technical specifications, but its use by the Department of Defense suggests it meets stringent military operational requirements for resilience and data integrity.
What are the potential risks associated with the long contract duration (2014-2025) and a fixed-price award for evolving communication technology?
A long duration for rapidly evolving technology like communications systems presents risks of obsolescence and the need for costly upgrades. A fixed-price award might incentivize the contractor to use less advanced components to maintain profitability, potentially impacting performance or requiring future modifications. Conversely, it protects the government from cost overruns if the contractor manages development efficiently.
How effectively did the 'Full and Open Competition' process ensure the best value and technological solution for the Navy's needs?
The 'Full and Open Competition' suggests a robust process aimed at soliciting the best offers. Its effectiveness in ensuring best value depends on the clarity of the requirements, the evaluation criteria, and the number and quality of bids received. A competitive process generally drives innovation and cost savings, but the specific outcome requires deeper analysis of the bidding landscape and award decision.
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: N0003913R0005
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905
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: $153,305,789
Exercised Options: $129,770,587
Current Obligation: $126,780,565
Actual Outlays: $15,802,191
Subaward Activity
Number of Subawards: 501
Total Subaward Amount: $143,231,606
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-26
Current End Date: 2025-11-18
Potential End Date: 2025-11-18 00:00:00
Last Modified: 2025-12-17
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