DoD awards $98.7M for ALQ-172Q Countermeasure Systems to L3Harris Technologies
Contract Overview
Contract Amount: $98,735,659 ($98.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-21
End Date: 2022-06-30
Contract Duration: 1,378 days
Daily Burn Rate: $71.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE 24 EACH OF NSN 5865-01-668-8772 COUNTERMEASURE CONTROL AND 12 EACH OF NSN 5865-01-669-5621 COUNTERMEASURE TRANSMITTER APPLICABLE TO THE ALQ-172Q SYSTEM.
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $98.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PURCHASE 24 EACH OF NSN 5865-01-668-8772 COUNTERMEASURE CONTROL AND 12 EACH OF NSN 5865-01-669-5621 COUNTERMEASURE TRANSMITTER APPLICABLE TO THE ALQ-172Q SYSTEM. Key points: 1. High-value award for critical defense electronic warfare systems. 2. Sole-source award to L3Harris Technologies, Inc., limiting competition. 3. Significant taxpayer investment in advanced countermeasure technology. 4. Sector focus on advanced defense electronics and systems integration.
Value Assessment
Rating: questionable
The total award of $98.7M for 24 countermeasure controls and 12 transmitters appears high given the lack of competitive bidding. Benchmarking against similar complex electronic warfare systems is difficult without more data, but the absence of competition raises concerns about optimal 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 approach bypasses competitive price discovery, potentially leading to higher costs for the government and taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical defense systems.
Public Impact
Enhances U.S. military's electronic warfare capabilities. Supports advanced threat detection and countermeasures for aircraft. Ensures operational readiness for critical defense platforms. Investment in high-tech defense manufacturing within New Jersey.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of bids.
- Long-term contract duration may obscure current market value.
Positive Signals
- Award to a known defense contractor with relevant expertise.
- Procurement of advanced and critical defense technology.
- Supports U.S. military's technological superiority.
Sector Analysis
This award falls within the Defense sector, specifically focusing on electronic warfare systems. Spending in this area is typically high due to the advanced technology and specialized nature of the equipment, often involving sole-source contracts with established prime contractors.
Small Business Impact
The data indicates this contract was awarded directly to L3Harris Technologies, Inc., and does not mention any subcontracting to small businesses. Further investigation would be needed to determine if small businesses were involved in the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and value for taxpayer money. The Defense Logistics Agency should monitor contract performance and costs diligently.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency on price reasonableness
- No indication of small business participation
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.7 million to L3HARRIS TECHNOLOGIES, INC.. PURCHASE 24 EACH OF NSN 5865-01-668-8772 COUNTERMEASURE CONTROL AND 12 EACH OF NSN 5865-01-669-5621 COUNTERMEASURE TRANSMITTER APPLICABLE TO THE ALQ-172Q 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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $98.7 million.
What is the period of performance?
Start: 2018-09-21. End: 2022-06-30.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the unavailability of other sources. The contracting agency must still conduct a price analysis, often comparing historical pricing, catalog prices, or using other methods to establish fairness. However, without competitive bids, the certainty of achieving the best possible price is reduced.
What are the specific risks associated with procuring advanced electronic warfare systems through sole-source contracts?
Sole-source procurement of advanced systems like the ALQ-172Q carries risks of inflated costs due to the absence of competitive pressure. It can also lead to vendor lock-in, making future procurements more expensive. Furthermore, it may stifle innovation from potential competitors who are excluded from the market.
How does the long contract duration (2018-2022) impact the assessment of value and potential for cost savings?
A long contract duration can obscure the current market value of goods or services if technology or market conditions change significantly. While it provides stability, it also presents a risk of paying above market rates if prices aren't regularly re-evaluated or if competitive alternatives emerge. It limits opportunities to leverage new, potentially lower-cost solutions.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $98,735,659
Exercised Options: $98,735,659
Current Obligation: $98,735,659
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRWA118D0014
IDV Type: IDC
Timeline
Start Date: 2018-09-21
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2021-09-03
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