DoD awards $115.8M for Combat Net Radio transmitters to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $115,844,177 ($115.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-15
End Date: 2026-05-30
Contract Duration: 745 days
Daily Burn Rate: $155.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 3.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $115.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 3. Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is for radio transmitters, a critical component for military communications. 3. L3Harris Technologies, Inc. is the sole awardee, indicating a specific capability or market position. 4. The contract duration is over two years, suggesting a sustained need for these components. 5. The award is a delivery order against a larger contract, implying a phased procurement approach. 6. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector.
Value Assessment
Rating: good
The award amount of $115.8 million for radio transmitters appears substantial. Benchmarking against similar contracts for advanced communication equipment is necessary to fully assess value. Given the specialized nature of combat net radios, pricing is likely influenced by technological sophistication and performance requirements. Without specific unit costs or comparisons to previous procurements of similar systems, a definitive value-for-money assessment is challenging, but the competitive award process may have helped secure reasonable pricing.
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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The fact that it was competed openly suggests that multiple companies likely possessed the capability to produce these radio transmitters.
Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to yield the best value through price and performance. Full and open competition increases the likelihood that the government is not overpaying for essential equipment.
Public Impact
The Department of the Army benefits from enhanced battlefield communication capabilities. Service members will receive advanced radio transmitters crucial for tactical operations. The contract supports the manufacturing sector, specifically wireless communications equipment. This procurement contributes to the readiness and operational effectiveness of military forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if L3Harris is the sole provider of this specific technology.
- Reliance on a single contractor for a critical component could pose supply chain risks.
- The long-term sustainment and upgrade path for these radios needs to be considered.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- L3Harris Technologies is a known entity in defense communications, suggesting established expertise.
- The contract is a delivery order, implying it's part of a larger, potentially well-managed program.
Sector Analysis
The defense communications sector is characterized by high technological barriers to entry and significant government investment. Companies like L3Harris Technologies operate within this specialized market, providing critical hardware and software solutions for military applications. Spending in this area is driven by the need for secure, reliable, and advanced communication systems that can withstand challenging operational environments. Comparable spending benchmarks would involve analyzing other contracts for tactical radios, secure communication systems, and related electronic warfare equipment within the Department of Defense.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. It is possible that subcontracting opportunities may arise for small businesses within L3Harris Technologies' supply chain, but this is not explicitly detailed. The primary awardee is a large corporation, suggesting that the direct contract value is unlikely to flow to small businesses unless through subcontracting channels.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places the cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the Department of Defense may conduct audits or investigations if concerns regarding performance, cost, or compliance arise.
Related Government Programs
- Combat Net Radio (CNR) Systems
- Tactical Communication Systems
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of the Army Procurement
Risk Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Ensuring long-term interoperability with evolving military communication architectures.
- Reliance on a single contractor for critical communication hardware.
Tags
defense, department-of-defense, department-of-the-army, l3harris-technologies, radio-transmitters, combat-net-radio, wireless-communications-equipment-manufacturing, firm-fixed-price, delivery-order, full-and-open-competition, new-york, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $115.8 million to L3HARRIS TECHNOLOGIES, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS TO ISSUE THE SECOND DELIVERY ORDER QUANTITY FOR RADIO TRANSMITTER (R/T) AGAINST COMBAT NET RADIO (CNR) POST- FIRST ARTICLE TESTING (FAT) ORDERING PERIOD 3.
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 $115.8 million.
What is the period of performance?
Start: 2024-05-15. End: 2026-05-30.
What is the historical spending by the Department of Defense on Combat Net Radio (CNR) systems, and how does this award compare?
Historical spending on Combat Net Radio (CNR) systems by the Department of Defense (DoD) is substantial, reflecting the continuous need for secure and reliable tactical communications. While specific aggregate figures for CNR systems alone can be difficult to isolate from broader tactical communications budgets, the DoD consistently allocates billions annually to procure and sustain communication equipment. This $115.8 million award for radio transmitters represents a significant, but not unprecedented, investment within this category. It is a delivery order against a larger contract, suggesting it is part of an ongoing program. To contextualize this award, one would compare it to previous delivery orders for similar components, the total value of the parent contract, and the average annual spending on CNR modernization or sustainment efforts over the past five to ten years. Factors such as technological advancements, threat landscape changes, and strategic communication priorities influence these spending patterns.
What is L3Harris Technologies' track record with the Department of Defense, particularly in supplying radio communication equipment?
L3Harris Technologies, Inc. has a well-established and extensive track record with the Department of Defense (DoD) as a major supplier of advanced communication systems, electronic warfare equipment, and other defense technologies. The company has been a consistent recipient of contracts for various radio systems, including tactical radios, secure communication devices, and related components. Their portfolio often includes solutions designed for challenging operational environments, aligning with the requirements for combat net radios. Prior awards from the DoD to L3Harris for similar or related equipment would provide a benchmark for their performance, reliability, and pricing. Analyzing their contract history, including past performance evaluations and any significant issues or successes, offers insight into their capability to fulfill this current delivery order effectively and on schedule.
How does the firm-fixed-price contract type impact risk and value for this procurement?
The firm-fixed-price (FFP) contract type for this delivery order means that L3Harris Technologies, Inc. is obligated to perform the work specified for a predetermined price. This structure shifts the primary cost risk from the government to the contractor. For the Department of Defense, an FFP contract provides cost certainty, as the total expenditure is known upfront, assuming the contractor meets all requirements. This is advantageous for budgeting and financial planning. For the contractor, it incentivizes efficient performance and cost control to maximize profit. The value for money is enhanced because the government pays a set price, and any cost overruns incurred by the contractor do not affect the government's payment. Conversely, if the contractor can deliver the required radio transmitters at a lower cost than anticipated, their profit margin increases. This contract type is generally preferred for procurements where the scope of work is well-defined and technical risks are manageable.
What are the potential performance risks associated with manufacturing and delivering advanced radio transmitters under this contract?
Potential performance risks associated with manufacturing and delivering advanced radio transmitters under this contract include technical challenges in meeting stringent military specifications, potential production delays due to supply chain disruptions for critical components, and quality control issues that could lead to defective units. Ensuring interoperability with existing military communication networks is also a critical performance factor. Furthermore, the 'Post-First Article Testing (FAT) Ordering Period 3' mentioned in the description suggests that initial testing phases have occurred, but ongoing quality assurance and reliability testing throughout the production run remain crucial. Any failure to meet performance standards could impact battlefield communications, leading to mission degradation or failure. The firm-fixed-price nature of the contract means that addressing these risks and ensuring quality rests heavily on the contractor's management and technical capabilities.
What is the significance of the 'Combat Net Radio (CNR) Post-First Article Testing (FAT) Ordering Period 3' designation?
The designation 'Combat Net Radio (CNR) Post-First Article Testing (FAT) Ordering Period 3' indicates that this delivery order is part of a multi-stage procurement process for CNR systems. First Article Testing (FAT) is a critical phase where a sample unit (the 'first article') is produced and rigorously tested to ensure it meets all contract specifications and performance requirements before full-scale production begins. 'Ordering Period 3' suggests that this is the third period during which the government is placing orders for these radios, likely following successful completion of FAT and potentially previous production runs or testing phases. This phased approach allows the government to verify the contractor's capability and the product's quality before committing to larger quantities, thereby mitigating risks associated with mass production of potentially flawed equipment. It implies a mature program where initial technical hurdles have likely been overcome.
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: 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: $115,844,177
Exercised Options: $115,844,177
Current Obligation: $115,844,177
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T22D0001
IDV Type: IDC
Timeline
Start Date: 2024-05-15
Current End Date: 2026-05-30
Potential End Date: 2026-05-30 00:00:00
Last Modified: 2025-08-20
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