DoD awards L3Harris $251M for MANPACK radios, training, and support under full and open competition

Contract Overview

Contract Amount: $251,108,342 ($251.1M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-11

End Date: 2027-12-31

Contract Duration: 1,206 days

Daily Burn Rate: $208.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $251.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL Key points: 1. The contract focuses on radio transmitters, warranties, ancillary equipment, and essential services like training and software. 2. Awarded to L3Harris Technologies, Inc., this represents a significant investment in tactical communications for the Army. 3. The procurement utilized full and open competition, suggesting a robust market for these specialized communication systems. 4. The contract duration of approximately 3.3 years indicates a sustained need for these capabilities. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The absence of small business set-aside suggests the primary contractor is likely a large business, with potential subcontracting opportunities.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed analysis of comparable radio systems and their associated support packages. However, the firm-fixed-price structure is a positive indicator for cost control. The inclusion of comprehensive support services alongside the hardware suggests a holistic approach to ensuring operational readiness, which can be cost-effective in the long run compared to piecemeal acquisition. Further analysis would involve comparing the per-unit cost of the radios and the pricing of the support services against industry benchmarks and historical DoD procurements for similar capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army solicited proposals from all responsible sources. The presence of two bids suggests a competitive environment, though the exact number of proposals received and the evaluation process details would be needed for a complete assessment. A competitive procurement generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, driving down costs and increasing the likelihood of receiving a high-value product.

Public Impact

The primary beneficiaries are U.S. Army personnel who will receive advanced tactical radio communication capabilities. The contract delivers essential radio transmitters, warranties, ancillary equipment, and critical support services including training and software. The geographic impact is likely widespread, supporting Army operations across various theaters and domestic installations. Workforce implications include training for military personnel on new equipment and potential employment opportunities within L3Harris Technologies and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if training and support are highly proprietary.
Reliance on a single awardee for critical communication equipment could pose supply chain risks.
Ensuring long-term interoperability with existing and future communication systems will be crucial.

Positive Signals

Award under full and open competition suggests a competitive process that should yield good value.
Firm-fixed-price contract type provides cost certainty for the government.
Inclusion of comprehensive support services (training, warranties) enhances operational readiness and potentially reduces lifecycle costs.

Sector Analysis

The defense communications sector is characterized by high technological sophistication and stringent performance requirements. This contract falls within the wireless communications equipment manufacturing industry, a segment that is vital for military operations. The market is typically dominated by a few large, specialized defense contractors capable of meeting the demanding specifications. Spending in this area is driven by the need for secure, reliable, and advanced communication systems to maintain battlefield superiority and operational effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, L3Harris Technologies, Inc. While there is no direct small business set-aside, there may be opportunities for small businesses to participate as subcontractors to L3Harris, particularly in areas such as component manufacturing, specialized services, or logistics. The government's overall strategy for small business participation would need further investigation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army'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 and services at an agreed-upon price. Transparency is facilitated through contract award announcements and public contract databases. The Inspector General for the Department of Defense may also have jurisdiction for audits and investigations related to fraud, waste, or abuse.

Related Government Programs

Tactical Radio Systems
Military Communications Equipment
Department of the Army Procurement
Defense Production Act Investments
Command, Control, Communications, Computers, and Intelligence (C4I) Systems

Risk Flags

Supply Chain Risk
Technological Obsolescence
Cybersecurity Vulnerability
Interoperability Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $251.1 million to L3HARRIS TECHNOLOGIES, INC.. MANPACK FULL RATE PRODUCTION (FRP)4 COMPETITIVE PROCUREMENT AWARD OF RADIO TRANSMITTERS, WARRANTIES, RELATED ANCILLARY EQUIPMENT, AND SERVICES INCLUDING KEY PERSONNEL TRAINING, SECURITY, SOFTWARE AND TOOLS FOR LOADING RADIOS, CONFIGURATION CONTROL

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 $251.1 million.

What is the period of performance?

Start: 2024-09-11. End: 2027-12-31.

What is the historical spending pattern for similar MANPACK radio systems by the Department of the Army?

Analyzing historical spending requires access to detailed contract databases and budget allocations for similar MANPACK radio systems over several fiscal years. Typically, the Army procures these systems in phases, including research and development, testing, low-rate initial production, and full-rate production. Spending can fluctuate based on modernization cycles, operational tempo, and congressional appropriations. For instance, previous awards for MANPACK radios might range from tens to hundreds of millions of dollars annually, depending on the specific system's maturity, quantity ordered, and the competitive landscape at the time of award. Understanding these patterns helps contextualize the current $251 million award as part of a larger, ongoing investment in tactical communications infrastructure.

How does the per-unit cost of the L3Harris MANPACK radios compare to previous procurements or other vendors?

Determining the precise per-unit cost requires breaking down the total contract value by the number of units procured, which is not explicitly provided in the summary data. However, a comparison can be made by examining the total value ($251.1 million) against the contract duration (approx. 3.3 years) and the number of orders (2). If we assume the $251.1 million covers the entire period and includes all equipment and services, a rough estimate of annual spending would be around $76 million. To benchmark per-unit costs, one would need to find data on the quantity of radios delivered under this contract and compare it to publicly available data for similar systems procured by the Army or other branches, looking for price variations based on quantity, features, and competition levels in those prior awards.

What are the key performance metrics or capabilities expected from these MANPACK radios?

MANPACK radios are designed for tactical, dismounted operations, emphasizing portability, ruggedness, and reliable communication in challenging environments. Key performance metrics typically include range, voice and data transmission quality, power efficiency (battery life), encryption capabilities for secure communications, resistance to jamming, and interoperability with other communication systems. For this specific L3Harris contract, the 'MANPACK FULL RATE PRODUCTION (FRP)' designation suggests these radios meet stringent military standards for operational deployment. The inclusion of 'anomalous equipment' and 'software' implies advanced features beyond basic voice communication, potentially including integrated GPS, data networking, and sophisticated waveform technologies for enhanced spectrum efficiency and resilience.

What is L3Harris Technologies' track record with similar DoD communication contracts?

L3Harris Technologies has a substantial and long-standing track record as a major defense contractor, particularly in the areas of communications, electronic warfare, and sensor systems. The company has been a key provider of tactical radios and integrated communication solutions to the U.S. military, including various MANPACK and vehicular radio systems. Their history includes numerous large-scale awards for production, upgrades, and sustainment of communication equipment across different branches of the DoD. This extensive experience suggests a deep understanding of military requirements, established production capabilities, and a proven ability to deliver complex communication systems, which likely contributed to their selection for this significant MANPACK radio contract.

What are the potential risks associated with the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code for this contract?

While the NAICS code 334220 covers a broad range of wireless communications equipment, specific risks for military MANPACK radios include rapid technological obsolescence, supply chain vulnerabilities for specialized components (e.g., microelectronics), cybersecurity threats targeting communication systems, and the potential for interoperability issues with evolving military networks. Furthermore, geopolitical factors can impact the availability and cost of raw materials or components. The reliance on a single prime contractor, even with competition, can also pose risks if the contractor faces financial difficulties or production delays. The government mitigates some of these risks through contract clauses, oversight, and potentially by fostering competition among multiple suppliers for critical components.

How does the inclusion of 'key personnel training' and 'software' impact the overall value and complexity of this contract?

The inclusion of 'key personnel training' and 'software' significantly enhances the overall value and complexity of this contract beyond just hardware provision. Training ensures that military operators and maintainers can effectively utilize the advanced capabilities of the MANPACK radios, maximizing their operational utility and reducing errors. Software, including 'loading radios, configuration control,' is critical for system functionality, updates, security patches, and potentially enabling new features or network integration. These elements transform the contract from a simple equipment purchase into a comprehensive capability solution, contributing to long-term system effectiveness and reducing the need for separate, potentially uncoordinated, support contracts. This integrated approach often leads to better overall value and mission readiness.

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: $342,261,906

Exercised Options: $251,108,342

Current Obligation: $251,108,342

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