DoD's $33.8M Navy Prototype Development Contract Awarded to L3Harris for Production-Ready EPS Units
Contract Overview
Contract Amount: $33,795,286 ($33.8M)
Contractor: L3harris Nexgen Communications LLC
Awarding Agency: Department of Defense
Start Date: 2025-02-27
End Date: 2026-02-27
Contract Duration: 365 days
Daily Burn Rate: $92.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL DEVELOPMENT OF NAVY PROTOTYPE UNITS INCLUDING THE DEVELOPMENT OF PRODUCTION-READY EPS UNITS TO REPRESENT NEAR FINAL PRODUCT LEVEL DESIGN AND ENGINEERING FOR INSTALLATION ONBOARD NAVY PLATFORMS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $33.8 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: TECHNICAL DEVELOPMENT OF NAVY PROTOTYPE UNITS INCLUDING THE DEVELOPMENT OF PRODUCTION-READY EPS UNITS TO REPRESENT NEAR FINAL PRODUCT LEVEL DESIGN AND ENGINEERING FOR INSTALLATION ONBOARD NAVY PLATFORMS. Key points: 1. Focuses on developing production-ready units for Navy platforms, indicating a move towards operational deployment. 2. L3Harris Technologies, a major defense contractor, is the sole awardee. 3. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 4. The award is a Delivery Order under an unspecified contract, with a 365-day duration.
Value Assessment
Rating: fair
The contract value of $33.8M for R&D prototype development appears reasonable given the technical scope. However, without specific benchmarks for similar Navy platform integration projects, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, suggesting it may be a sole-source award or part of a pre-existing limited competition vehicle. This limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are being used for advanced prototype development, with limited transparency on cost-effectiveness due to the lack of competition.
Public Impact
Enhances Navy platform capabilities with advanced communication technology. Supports technological advancement within the defense sector. Potential for future large-scale production contracts if prototypes are successful. Invests in domestic R&D and manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about optimal pricing.
- Prototype development can be prone to cost overruns.
- Dependency on a single contractor for critical technology.
Positive Signals
- Addresses a specific Navy requirement for advanced systems.
- Potential for significant operational improvements.
- Investment in cutting-edge technology.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. Defense R&D spending is substantial, with significant portions allocated to developing next-generation technologies for military applications.
Small Business Impact
The awardee, L3Harris Technologies, is a large business. There is no indication that small businesses were involved in this specific delivery order, nor is there a stated focus on small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the prototype development stays within budget and meets technical specifications. The Department of the Navy's contracting activity suggests internal oversight mechanisms are in place.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding.
- Potential for cost overruns in R&D.
- Dependency on a single vendor.
- Unclear transition path to full production.
- Limited public information on specific technical goals.
Tags
research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. TECHNICAL DEVELOPMENT OF NAVY PROTOTYPE UNITS INCLUDING THE DEVELOPMENT OF PRODUCTION-READY EPS UNITS TO REPRESENT NEAR FINAL PRODUCT LEVEL DESIGN AND ENGINEERING FOR INSTALLATION ONBOARD NAVY PLATFORMS.
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $33.8 million.
What is the period of performance?
Start: 2025-02-27. End: 2026-02-27.
What is the specific technological advancement expected from these production-ready EPS units, and how does it compare to existing capabilities?
The contract aims to develop production-ready EPS (Electronic Power System) units for Navy platforms. The specific technological advancement likely involves enhanced efficiency, reliability, or integration capabilities compared to current systems. This could translate to improved platform performance, reduced maintenance, or new operational functionalities, though the exact nature of the advancement is detailed in technical specifications not provided here.
Given the limited competition, what measures are in place to ensure the government receives fair value for the $33.8M investment?
While direct price competition is absent, the government likely relies on pre-negotiated rates within an existing contract vehicle, historical cost data for similar R&D efforts, and stringent technical milestone reviews. Cost-plus-fixed-fee contracts also include profit limitations. Robust oversight by the Department of the Navy, including technical and financial audits, is essential to safeguard taxpayer interests and ensure value.
What is the projected timeline for transitioning these prototypes to full-scale production, and what are the key performance indicators for success?
The current contract focuses on prototype development over 365 days, aiming for production-ready designs. A transition to full-scale production would likely follow successful prototype testing and validation, potentially involving a separate, competitive procurement. Key performance indicators would include meeting defined technical specifications, achieving target performance metrics during testing, and demonstrating manufacturability within projected cost parameters.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 44965 AVIATION DR, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,500,361
Exercised Options: $37,815,722
Current Obligation: $33,795,286
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $4,682,551
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017322D2001
IDV Type: IDC
Timeline
Start Date: 2025-02-27
Current End Date: 2026-02-27
Potential End Date: 2027-02-27 00:00:00
Last Modified: 2025-09-09
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