DoD's $166M radio and comms equipment order to L3Harris Technologies, Inc. awarded via full and open competition
Contract Overview
Contract Amount: $166,313,227 ($166.3M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-18
End Date: 2026-09-18
Contract Duration: 730 days
Daily Burn Rate: $227.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATIONS EQUIPMENT.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $166.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATIONS EQUIPMENT. Key points: 1. Contract awarded for essential radio and communications equipment, supporting military operational readiness. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration of 730 days indicates a medium-term supply requirement. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. Awardee L3Harris Technologies is a significant player in defense communications. 6. The contract value of $166.3M represents a substantial investment in communication infrastructure.
Value Assessment
Rating: good
The contract value of $166.3 million for radio and communications equipment appears reasonable given the scope and duration. Benchmarking against similar large-scale procurements for advanced communication systems is necessary for a definitive value assessment. However, the firm fixed-price structure provides cost certainty, which is a positive indicator for value for money. The specific equipment procured will heavily influence the precise value assessment.
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 significant procurement. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.
Taxpayer Impact: The full and open competition process, even with two bidders, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. This approach helps prevent overpayment and promotes a fair market for defense contractors.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, who will receive critical communication equipment. The services delivered include the provision of advanced radio and communication systems essential for military operations. The geographic impact is likely global, supporting deployed forces, with a specific focus on operations managed by the Department of the Army. Workforce implications may include L3Harris Technologies' manufacturing and engineering teams, as well as potential support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the specific equipment requires proprietary support or upgrades.
- Dependence on a single awardee for a critical piece of military infrastructure.
- Risk of obsolescence if technology rapidly advances beyond the procured equipment's capabilities.
Positive Signals
- Award to a known entity, L3Harris Technologies, Inc., suggests a degree of confidence in their capabilities.
- Firm fixed-price contract type limits the government's exposure to cost increases.
- Full and open competition, even with limited bidders, provides a baseline for market pricing.
- The contract is for essential equipment, directly supporting military operational needs.
Sector Analysis
The defense communications sector is characterized by high technological sophistication and significant government investment. L3Harris Technologies operates within this competitive landscape, providing advanced solutions for military and government clients. This contract fits within the broader category of defense electronics manufacturing, a market segment driven by evolving threats and the need for interoperable communication systems. Comparable spending benchmarks would involve analyzing other large-scale procurements for tactical radios, secure communication devices, and related infrastructure.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor is there explicit mention of subcontracting goals for small businesses. The award to L3Harris Technologies, a large defense contractor, suggests that the primary focus was on meeting the technical and performance requirements of the Department of the Army. Further analysis would be needed to determine if any subcontracting opportunities for small businesses are anticipated within the execution of this order.
Oversight & Accountability
Oversight for this contract will primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and detailed oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Tactical Radio Systems
- Military Communications Networks
- Defense Electronics Procurement
- Department of the Army Equipment Modernization
Risk Flags
- Potential for obsolescence
- Dependence on specific technology
- Supply chain vulnerability
Tags
defense, department-of-defense, department-of-the-army, radio-equipment, communications-equipment, firm-fixed-price, full-and-open-competition, large-contract, new-york, l3harris-technologies
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.3 million to L3HARRIS TECHNOLOGIES, INC.. THIS LEADER RADIO FULL RATE PRODUCTION ORDER AUTHORIZES THE PURCHASE OF RADIO AND COMMUNICATIONS EQUIPMENT.
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 $166.3 million.
What is the period of performance?
Start: 2024-09-18. End: 2026-09-18.
What is the track record of L3Harris Technologies, Inc. in delivering similar radio and communication equipment to the Department of Defense?
L3Harris Technologies, Inc. has a substantial and well-established track record in providing advanced communication systems, electronic warfare capabilities, and other defense-related technologies to the U.S. Department of Defense and allied nations. The company is a frequent recipient of contracts for tactical radios, secure communication devices, and integrated network solutions. Their history includes numerous successful deliveries of complex systems, often under demanding performance specifications and timelines. While specific details of past performance on similar contracts would require deeper data analysis, L3Harris's position as a prime contractor in this domain indicates a generally strong capability and experience in meeting military communication requirements. Their involvement in major defense programs suggests a proven ability to manage large-scale procurements and deliver reliable equipment.
How does the awarded value of $166.3 million compare to similar procurements for radio and communication equipment by the DoD?
The awarded value of $166.3 million for radio and communications equipment is a significant sum, indicative of a large-scale procurement likely involving advanced or specialized systems. To benchmark this value effectively, comparisons should be made with other firm-fixed-price contracts awarded by the Department of Defense for similar quantities and types of radio and communication equipment over the past 3-5 years. Factors such as technological sophistication, quantity, specific features (e.g., encryption, ruggedization, bandwidth), and contract duration are critical for a fair comparison. Without access to a comprehensive database of comparable contracts, it is difficult to definitively state whether this represents excellent, fair, or questionable value. However, given the competitive award, it suggests the price was deemed acceptable relative to the bids received for the specified requirements.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks associated with this contract include potential technological obsolescence, as communication technology evolves rapidly; performance risks, where the equipment may not meet all operational requirements under diverse conditions; and supply chain disruptions, which could impact timely delivery. Mitigation strategies are evident in the contract's structure. The firm-fixed-price nature shifts much of the cost overrun risk to the contractor. The award under full and open competition, even with two bidders, suggests a degree of market validation for the proposed solution. The 730-day duration allows for phased delivery and testing, potentially enabling early identification of performance issues. Furthermore, the Department of the Army's oversight and acceptance testing processes serve as crucial mitigation steps for performance and quality risks.
What is the expected program effectiveness and impact of this radio and communication equipment on military operations?
The program's effectiveness is expected to be high, as the procurement directly addresses the need for modern and reliable radio and communication equipment, which is fundamental to military operations. Enhanced communication capabilities can improve situational awareness, command and control, and interoperability between different units and branches. This can lead to more efficient mission execution, reduced risk to personnel, and improved overall operational readiness. The specific impact will depend on the type and capabilities of the equipment procured, but generally, such investments are critical for maintaining a technological edge and ensuring effective force projection and defense in complex operational environments.
How does this contract align with historical spending patterns for radio and communication equipment within the Department of the Army?
Historical spending patterns for radio and communication equipment within the Department of the Army typically show consistent investment in maintaining and modernizing its communication infrastructure. This includes procurements for tactical radios, satellite communication systems, and network-centric warfare components. The $166.3 million award represents a significant, but not necessarily anomalous, expenditure within this context. The Army's budget often allocates substantial funds to C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. This contract likely falls within the typical range for major equipment modernization efforts, reflecting an ongoing commitment to ensuring its forces possess state-of-the-art communication tools necessary for contemporary and future operational demands.
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: $364,773,777
Exercised Options: $166,313,227
Current Obligation: $166,313,227
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T15D0016
IDV Type: IDC
Timeline
Start Date: 2024-09-18
Current End Date: 2026-09-18
Potential End Date: 2026-09-18 12:09:00
Last Modified: 2025-09-30
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