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

State: District of Columbia Government Spending

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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral 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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