DoD awards $177.6M for MANPACK radios, with L3Harris Technologies securing the delivery order
Contract Overview
Contract Amount: $177,639,490 ($177.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-23
End Date: 2028-02-15
Contract Duration: 2,336 days
Daily Burn Rate: $76.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANPACK FY21 COMPETITIVE PROCUREMENT.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $177.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MANPACK FY21 COMPETITIVE PROCUREMENT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The delivery order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating potential for future task orders. 3. The contract duration extends over five years, suggesting a long-term need for these communication systems. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector. 6. Awarded to L3Harris Technologies, a significant defense contractor with a broad portfolio.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order is challenging without knowing the total IDIQ ceiling and the specific items procured. However, the firm-fixed-price nature of the award is generally favorable for the government, as it caps the contractor's potential profit and transfers cost overrun risk. The competitive nature of the award suggests that pricing was likely scrutinized against market rates and other potential bidders' proposals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders is better than a sole source, a higher number of bidders typically leads to more aggressive pricing and innovation.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of the goods or services provided.
Public Impact
The Department of the Army benefits from the acquisition of essential communication equipment for its personnel. This contract supports the delivery of radio and wireless communication equipment, crucial for military operations. The contract is geographically focused on New York, where L3Harris Technologies is located, though the equipment will likely be deployed globally. The contract supports jobs within the defense manufacturing sector, particularly in wireless communications equipment production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this IDIQ becomes the primary source for future needs without re-competition.
- Reliance on a single delivery order awardee for a critical capability could pose risks if performance issues arise.
- The specific performance metrics and quality control for this delivery order are not detailed, posing a potential risk to operational readiness.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long-term contract duration allows for sustained supply of critical communication equipment.
- L3Harris Technologies is an established defense contractor with a track record in communications systems.
Sector Analysis
The contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing. This industry is characterized by rapid technological advancements and significant government procurement due to national security needs. The market for military communication systems is substantial, with major defense contractors competing for these lucrative awards. Benchmarking against similar contracts for tactical radios or communication systems would provide further context on pricing and value.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of the equipment and the prime contractor, it is possible that L3Harris Technologies may utilize small businesses as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the award simplifies some aspects of financial oversight, as costs are predetermined. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Radio Systems
- Command and Control Systems
- Military Communications Equipment
- Department of Defense Procurement
Risk Flags
- Potential for cost growth if not managed tightly despite FFP.
- Dependence on a single awardee for a critical capability.
- Long contract duration may not keep pace with rapid technological advancements.
- Limited competition (2 bidders) may not yield the best possible price.
Tags
defense, department-of-the-army, l3harris-technologies, firm-fixed-price, delivery-order, full-and-open-competition, wireless-communications-equipment-manufacturing, radio-and-television-broadcasting-and-wireless-communications-equipment-manufacturing, new-york, communication-systems, tactical-radios
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $177.6 million to L3HARRIS TECHNOLOGIES, INC.. MANPACK FY21 COMPETITIVE PROCUREMENT.
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 $177.6 million.
What is the period of performance?
Start: 2021-09-23. End: 2028-02-15.
What is the historical spending pattern for MANPACK radios by the Department of the Army?
Analyzing historical spending on MANPACK radios by the Department of the Army requires access to detailed procurement data over multiple fiscal years. Typically, such spending fluctuates based on modernization programs, operational tempo, and budget allocations. Contracts for these systems are often awarded through competitive processes, with major defense contractors like L3Harris Technologies, BAE Systems, and Thales frequently appearing as awardees. The total obligated amounts can range from tens of millions to hundreds of millions of dollars annually, depending on the scale of procurement and the specific contract vehicles in place (e.g., IDIQs, sole-source awards for specific upgrades). Understanding these patterns helps in assessing whether the current award represents a typical investment or a significant deviation.
How does the unit cost of these MANPACK radios compare to similar systems procured by other military branches or allied nations?
A precise unit cost comparison is difficult without knowing the exact specifications and quantities within this specific delivery order. However, MANPACK radios are sophisticated pieces of equipment, and their cost can range significantly based on features like encryption, range, power output, and network integration capabilities. Generally, military-grade communication equipment is more expensive than commercial equivalents due to stringent reliability, security, and environmental resistance requirements. Benchmarking against similar procurements by other branches (e.g., U.S. Marine Corps, U.S. Air Force) or allied nations would involve identifying comparable systems and their awarded prices, adjusted for inflation and quantity discounts. Publicly available contract awards and defense budget reports are key sources for such comparisons.
What are the key performance indicators (KPIs) and quality assurance measures associated with this contract?
The specific Key Performance Indicators (KPIs) and Quality Assurance (QA) measures for this MANPACK radio delivery order are typically detailed within the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). These would likely include metrics related to radio performance (e.g., signal clarity, range, battery life), reliability (e.g., Mean Time Between Failures - MTBF), delivery timeliness, and adherence to technical specifications. The Department of the Army's contracting officer's representative (COR) would be responsible for monitoring contractor performance against these KPIs and QA provisions. Failure to meet these standards could result in contract remedies, including withholding payment or termination.
What is L3Harris Technologies' track record with similar Department of Defense communication contracts?
L3Harris Technologies, and its predecessor companies, have a long and extensive track record of supplying communication systems to the Department of Defense (DoD) and other government agencies. They are a major player in the defense electronics and communications market, known for producing a wide range of products including tactical radios, satellite communications, and electronic warfare systems. Their history includes numerous large-scale contracts for various military branches. While specific performance details for every contract are not always public, L3Harris is generally considered a reliable supplier. However, like any large defense contractor, they may have faced past performance reviews or contract disputes on specific programs, which would be detailed in government performance databases if they impacted award decisions.
What is the potential impact of this contract on the overall defense budget for wireless communications equipment?
This $177.6 million delivery order represents a significant, but not necessarily budget-altering, expenditure within the broader context of the Department of Defense's annual budget for communications equipment. The DoD procures billions of dollars worth of C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems annually. This award contributes to the overall spending in the wireless communications sector, supporting L3Harris Technologies and its supply chain. Its impact on the overall budget depends on whether it replaces older systems, funds new capabilities, or is part of a larger, multi-year modernization effort. The firm-fixed-price nature helps in budget predictability for this specific order.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $177,753,432
Exercised Options: $177,639,490
Current Obligation: $177,639,490
Actual Outlays: $10,305,302
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T16D0002
IDV Type: IDC
Timeline
Start Date: 2021-09-23
Current End Date: 2028-02-15
Potential End Date: 2028-02-15 12:02:00
Last Modified: 2025-12-18
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