Army Awards $61.6M for M767A1 Electronic Timing Fuzes to L3Harris
Contract Overview
Contract Amount: $61,614,682 ($61.6M)
Contractor: L3harris Fuzing and Ordnance Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-05
End Date: 2026-09-30
Contract Duration: 999 days
Daily Burn Rate: $61.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M767A1 ELECTRONIC TIMING FUZES
Place of Performance
Location: CINCINNATI, CLERMONT County, OHIO, 45245
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $61.6 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC. for work described as: M767A1 ELECTRONIC TIMING FUZES Key points: 1. Contract awarded to L3Harris for electronic timing fuzes. 2. Significant award value of $61.6 million. 3. No competition was utilized for this award. 4. The sector is Defense, specifically Ammunition Manufacturing.
Value Assessment
Rating: good
The award value of $61.6 million for electronic timing fuzes appears reasonable given the lack of competitive bidding. Benchmarking against similar fuzes is difficult without more data, but the price seems within a plausible range for specialized defense components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had bid on the contract.
Public Impact
Ensures continued supply of critical fuzing components for military operations. Supports a key defense contractor, L3Harris. Potential for increased costs due to sole-source award. Impact on readiness if fuzes are essential for current platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Ensures supply of critical component
- Supports established contractor
Sector Analysis
This award falls within the Defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and technological advancements in ordnance. Benchmarks for specialized fuzes are often proprietary or difficult to ascertain due to limited market visibility.
Small Business Impact
The contract was awarded to L3Harris, a large defense contractor. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract performance monitoring, quality assurance, and financial audits to ensure compliance and value for money, especially given the sole-source nature.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in pricing justification.
- Dependence on a single supplier.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.6 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC.. M767A1 ELECTRONIC TIMING FUZES
Who is the contractor on this award?
The obligated recipient is L3HARRIS FUZING AND ORDNANCE SYSTEMS, 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 $61.6 million.
What is the period of performance?
Start: 2024-01-05. End: 2026-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Agencies must still conduct market research and negotiate pricing to ensure it is fair and reasonable. Without specific documentation, it's difficult to assess the thoroughness of these efforts for this particular contract.
How does the unit cost of these fuzes compare to similar components used in other military systems or by allied nations?
Direct comparison of unit costs for specialized military components like electronic timing fuzes is challenging due to proprietary designs, varying technical specifications, and different procurement scales. Benchmarking would require access to detailed cost data from comparable contracts or intelligence on foreign military procurement, which is not publicly available.
What is the long-term strategy for fuzing technology, and does this award align with future modernization efforts?
This award focuses on the M767A1 fuzes, suggesting a continued need for this specific technology in the near to medium term. The Army's long-term strategy for fuzing would encompass research and development into next-generation capabilities, potentially including enhanced security, multi-functionality, or reduced cost. This contract's alignment depends on whether the M767A1 remains a relevant or critical component.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3975 MCMANN RD, CINCINNATI, OH, 45245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $871,583,197
Exercised Options: $61,614,682
Current Obligation: $61,614,682
Actual Outlays: $3,851,178
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $23,042,177
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W519TC24D0003
IDV Type: IDC
Timeline
Start Date: 2024-01-05
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-04-26
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