DoD's $110.6M L3Harris contract for HF radio kits and services awarded via full and open competition
Contract Overview
Contract Amount: $110,648,791 ($110.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-01-10
End Date: 2010-07-15
Contract Duration: 917 days
Daily Burn Rate: $120.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HF RADIO INSTALLATION KITS, INSTALLATION SERVICES, AND TRAINING SERVICES
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $110.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: HF RADIO INSTALLATION KITS, INSTALLATION SERVICES, AND TRAINING SERVICES Key points: 1. Contract awarded to a single vendor, L3Harris Technologies, Inc., for a significant value. 2. The contract was competed on a full and open basis, suggesting broad market access. 3. Performance period spans over two years, indicating a substantial operational requirement. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Awarded by the Defense Contract Management Agency, indicating a focus on defense readiness. 6. The North American Industry Classification System (NAICS) code 334220 points to wireless communications equipment manufacturing.
Value Assessment
Rating: fair
Benchmarking the value of this $110.6 million contract is challenging without specific details on the quantity and type of HF radio kits, installation services, and training provided. The firm fixed-price nature suggests an attempt to control costs, but the overall value proposition depends heavily on the delivered capabilities and their alignment with DoD's operational needs. Comparing it to similar large-scale radio system procurements would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it resulted in a single award to L3Harris Technologies, Inc. does not inherently diminish the competitive nature of the solicitation process itself. However, it raises questions about the number of bids received and the level of price competition achieved.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing from a wide range of potential suppliers, fostering a competitive environment that can drive down costs.
Public Impact
The primary beneficiaries are the Department of Defense (DoD) personnel who will utilize the High Frequency (HF) radio systems. Services delivered include the provision of HF radio kits, installation, and training, enhancing communication capabilities. The geographic impact is likely widespread within DoD operational theaters, supporting global communication needs. Workforce implications include the need for trained personnel to install and operate the new radio systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the chosen system becomes proprietary and difficult to integrate with other communication platforms.
- The large contract value could indicate a significant investment, and any performance issues could have a substantial impact on operational readiness.
- Reliance on a single vendor for kits, installation, and training might limit flexibility in future upgrades or maintenance.
Positive Signals
- Firm Fixed Price contract structure helps manage cost overruns and provides budget certainty for the DoD.
- Awarded through full and open competition, suggesting a robust process to identify qualified vendors and potentially competitive pricing.
- The contract addresses critical communication needs for the DoD, contributing to operational effectiveness.
Sector Analysis
This contract falls within the broader telecommunications and defense electronics sector, specifically focusing on radio and wireless communications equipment. The market for such equipment is characterized by high technological sophistication, significant R&D investment, and a concentrated base of specialized manufacturers, often with strong ties to government procurement. Comparable spending benchmarks would involve analyzing other large-scale procurements for tactical communication systems or specialized radio hardware within the defense sector.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While L3Harris Technologies, Inc. is a large prime contractor, the contract does not explicitly detail subcontracting plans for small businesses. Further analysis would be needed to determine if and how small businesses are involved in the supply chain or subcontracting opportunities related to this award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure contractor performance and compliance. Oversight mechanisms would typically include regular progress reports, site inspections, and quality assurance checks. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight activities are often internal to the agency.
Related Government Programs
- Tactical Radio Systems
- Secure Communications
- Military Communications Equipment
- Defense Communications Infrastructure
Risk Flags
- Lack of specific technical details on radio kits
- Unknown number of bids received
- No explicit small business subcontracting plan mentioned
- Performance metrics not detailed
Tags
defense, department-of-defense, l3harris-technologies, hf-radio, communications-equipment, installation-services, training-services, firm-fixed-price, full-and-open-competition, defense-contract-management-agency, wireless-communications, new-york
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.6 million to L3HARRIS TECHNOLOGIES, INC.. HF RADIO INSTALLATION KITS, INSTALLATION SERVICES, AND TRAINING SERVICES
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $110.6 million.
What is the period of performance?
Start: 2008-01-10. End: 2010-07-15.
What is the specific type and quantity of HF radio kits being procured under this contract?
The provided data does not specify the exact model numbers, technical specifications, or quantities of the HF radio kits. It only broadly categorizes them as 'HF RADIO INSTALLATION KITS'. To fully assess the value and suitability of this contract, understanding the technical capabilities, range, encryption features, and intended operational environment for these kits would be crucial. Without this detail, it's difficult to benchmark the price against specific technological offerings in the market.
How many bids were received for this full and open competition, and what was the range of proposed prices?
The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' but does not specify the number of bids received or the price range of those bids. A low number of bids, even in a full and open competition, could suggest limited market interest or a highly specialized requirement. Conversely, a high number of bids typically indicates robust competition, which can lead to better pricing for the government. Access to bid counts and pricing data would provide a clearer picture of the competitive landscape.
What is the track record of L3Harris Technologies, Inc. in delivering similar HF radio systems and services to the DoD?
L3Harris Technologies, Inc. is a well-established defense contractor with a significant presence in communications systems. While this specific contract is for HF radio kits, installation, and training, L3Harris has a broad portfolio that includes various radio and communication solutions for military applications. Assessing their past performance on similar contracts, including on-time delivery, quality of equipment, effectiveness of training, and adherence to budget, would be essential to gauge their capability and reliability for this particular award.
How does the pricing structure (Firm Fixed Price) impact the risk and potential cost savings for the government in this contract?
The Firm Fixed Price (FFP) contract structure places the responsibility for cost overruns on the contractor, L3Harris Technologies, Inc. This benefits the government by providing cost certainty and predictability, as the price is fixed regardless of the contractor's actual costs. For the government, this structure can lead to significant cost savings if the contractor efficiently manages its resources. However, it also means the government may not benefit from any cost underruns, and the initial price must be set competitively to reflect market conditions.
What are the key performance indicators (KPIs) used to measure the success of the installation services and training provided?
The provided contract data does not detail the specific Key Performance Indicators (KPIs) or performance standards established for the installation services and training. Typically, for installation, KPIs might include on-time completion, successful system integration, and adherence to technical specifications. For training, KPIs could involve trainee proficiency assessments, satisfaction surveys, and the ability of personnel to operate the equipment effectively post-training. Without these defined metrics, assessing the contractor's performance and the overall effectiveness of these services is difficult.
What is the historical spending trend for HF radio systems and related services by the Department of Defense?
The provided data is for a single contract award and does not offer historical spending trends for HF radio systems and related services by the DoD. To establish such a trend, one would need to analyze procurement data over several fiscal years, identifying all contracts related to HF radio systems, installation, and training across various DoD branches and agencies. This would reveal patterns in spending, identify key vendors, and highlight fluctuations in demand or technological shifts influencing procurement.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $110,648,791
Exercised Options: $110,648,791
Current Obligation: $110,648,791
Parent Contract
Parent Award PIID: GS35F0163N
IDV Type: FSS
Timeline
Start Date: 2008-01-10
Current End Date: 2010-07-15
Potential End Date: 2010-07-15 00:00:00
Last Modified: 2009-10-08
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