DoD's $1.69M Contract for Cable Assemblies: Fair Value Amidst Limited Competition
Contract Overview
Contract Amount: $168,765,000 ($168.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-30
End Date: 2007-09-28
Contract Duration: 455 days
Daily Burn Rate: $370.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200608!005316!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0163N !C!N! !N!W15P7T06F0040! !20060630!20071030!002204600!002204600!004203337!N!HARRIS CORPORATION !1680 UNIVERSITY AVE !ROCHESTER !NY!14610!63000!055!36!ROCHESTER !MONROE !NEW YORK !+000168765000!N!N!000000000000!5995!CABLE, CORD, WIRE ASSEMBLIES: COMM EQUIP !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334290!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $168.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200608!005316!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0163N !C!N! !N!W15P7T06F0040! !20060630!20071030!002204600!002204600!004203337!N!HARRIS CORPORATION !1680 UNIVERSITY AVE !ROCHESTER !NY!14610!63000!055!36!ROCHESTER !MONR… Key points: 1. The contract value of $1.69M for cable assemblies appears reasonable given the sector. 2. Limited competition may have impacted price discovery, warranting further scrutiny. 3. The primary risk lies in potential overpricing due to restricted vendor options. 4. Spending falls within the Electronics and Communication Equipment sector.
Value Assessment
Rating: fair
The contract value of $1.69M for cable assemblies is difficult to benchmark precisely without more detailed cost breakdowns. However, it does not appear excessively high compared to general industry pricing for similar electronic components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the competition and the number of bidders are not fully detailed, which could still influence price discovery.
Taxpayer Impact: Taxpayer funds were used for this procurement, and while competition was intended, the final price reflects the outcome of that process.
Public Impact
Procurement of essential communication equipment for the Department of Defense. Supports military readiness and operational capabilities through reliable hardware. Potential for taxpayer savings if competitive bidding effectively drove down costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited insight into specific technical requirements driving cost.
- Unclear if multiple qualified vendors participated in the competition.
Positive Signals
- Awarded under full and open competition.
- Contract duration aligns with expected equipment lifecycle.
Sector Analysis
This contract falls under the Electronics and Communication Equipment Manufacturing sector. Spending benchmarks for this sector can vary widely based on technological complexity and volume, but this contract appears to be of moderate size.
Small Business Impact
There is no specific indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine their participation.
Oversight & Accountability
Oversight of this contract would typically involve the Department of Defense's contracting officers and potentially quality assurance representatives to ensure compliance with terms and specifications.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price inflation due to limited competition.
- Lack of detailed cost breakdown hinders precise value assessment.
- Uncertainty regarding small business participation.
- Need for comparative pricing data for robust benchmarking.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ny, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $168.8 million to L3HARRIS TECHNOLOGIES, INC.. 200608!005316!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0163N !C!N! !N!W15P7T06F0040! !20060630!20071030!002204600!002204600!004203337!N!HARRIS CORPORATION !1680 UNIVERSITY AVE !ROCHESTER !NY!14610!63000!055!36!ROCHESTER !MONROE !NEW YORK !+000168765000!N!N!000000000000!5995!CABLE, CORD, WIRE ASSEMBLIES: COMM EQUIP !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334290!E! !6! ! ! ! ! !999
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 Army).
What is the total obligated amount?
The obligated amount is $168.8 million.
What is the period of performance?
Start: 2006-06-30. End: 2007-09-28.
What was the specific technical complexity of the cable assemblies that justified the contract value?
The provided data does not detail the specific technical requirements or complexity of the cable assemblies. Understanding factors like shielding, connector types, length tolerances, and environmental resistance would be crucial for a more precise cost assessment and to determine if the value aligns with specialized needs.
Were there any performance issues or contract modifications that impacted the final cost?
The data indicates a contract duration of 455 days and a firm fixed price, suggesting a straightforward execution. There is no immediate information on performance issues or modifications that would have altered the initial cost. However, a deeper dive into contract performance reports would be necessary for confirmation.
How did the pricing compare to other similar procurements within the DoD or other agencies during the same period?
Benchmarking this contract's price against similar procurements requires access to a broader dataset of defense contracts for cable assemblies. Without comparative data, it's challenging to definitively state if the $1.69M represents optimal value or if there were opportunities for greater cost savings through more aggressive negotiation or competition.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 25
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F0163N
IDV Type: FSS
Timeline
Start Date: 2006-06-30
Current End Date: 2007-09-28
Potential End Date: 2007-09-28 00:00:00
Last Modified: 2008-08-12
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