DoD's $22.8M R&D Contract for Wireless Communications Equipment Awarded to L3Harris

Contract Overview

Contract Amount: $22,859,391 ($22.9M)

Contractor: L3harris Nexgen Communications LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-14

End Date: 2015-09-30

Contract Duration: 1,295 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: R&D - BLAST

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to L3HARRIS NEXGEN COMMUNICATIONS LLC for work described as: R&D - BLAST Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is 'Cost No Fee', which shifts cost risk to the contractor. 3. The contract duration of 1295 days indicates a significant, long-term project. 4. The North American Industry Classification System (NAICS) code 334220 points to a specialized manufacturing sector. 5. The award was made by the Department of Defense, a major federal contracting entity. 6. The contract was awarded to L3Harris NexGen Communications LLC, a known defense contractor.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables or performance metrics. The 'Cost No Fee' structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor manages costs effectively. However, without comparable R&D contracts in this specific niche, assessing whether the final cost represents excellent value for money is difficult. The total award amount of approximately $22.8 million over roughly 3.5 years suggests a moderate investment for research and development in advanced wireless communications.

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 a bid. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A competitive process generally helps in achieving fair market prices and encourages innovation from bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal investment.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive advancements in wireless communications technology. The services delivered are research and development in the area of radio and television broadcasting and wireless communications equipment. The geographic impact is likely concentrated within the defense sector and potentially impacts national security infrastructure. Workforce implications may include specialized engineers and technicians involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the ultimate success of the R&D.
The 'Cost No Fee' structure, while shifting risk, could incentivize minimal effort if not properly monitored.
Limited information on the specific technological advancements sought makes it hard to gauge the strategic importance.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
The 'Cost No Fee' contract type places cost control responsibility on the contractor.
The contractor, L3Harris, is a reputable entity with experience in defense communications.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing. The R&D aspect suggests a focus on developing next-generation technologies. The market for defense-related wireless communications is highly specialized, with significant investment driven by national security needs. Comparable spending benchmarks would typically be found within other DoD R&D contracts for communication systems, which often involve substantial, multi-year commitments.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of R&D in advanced communications equipment, it is likely that the prime contractor, L3Harris, would handle the majority of the work. Subcontracting opportunities for small businesses might exist if specific components or specialized expertise are required, but this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency, the Department of Defense, through its contract management offices. Accountability measures would be tied to the contract's milestones and deliverables, although specific performance metrics are not detailed here. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Communications Systems
Wireless Technology Advancement Programs
Advanced Manufacturing Contracts

Risk Flags

Potential for scope creep in R&D projects.
Contractor motivation under 'Cost No Fee' structure.
Difficulty in defining and measuring R&D success.
Long-term technology obsolescence risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to L3HARRIS NEXGEN COMMUNICATIONS LLC. R&D - BLAST

Who is the contractor on this award?

The obligated recipient is L3HARRIS NEXGEN COMMUNICATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2012-03-14. End: 2015-09-30.

What is the track record of L3Harris NexGen Communications LLC with the Department of Defense?

L3Harris Technologies, Inc. (the parent company of L3Harris NexGen Communications LLC) has a long and extensive history of contracting with the Department of Defense across various sectors, including communications, intelligence, surveillance, reconnaissance, and electronic warfare. They are a significant defense contractor known for providing advanced technological solutions. While specific performance data for this particular R&D contract is not detailed, L3Harris's overall track record with the DoD is generally considered strong, characterized by the delivery of complex systems and technologies. Their involvement in numerous high-value contracts underscores their established presence and capabilities within the defense industrial base. Analyzing past performance on similar R&D or advanced technology development contracts would provide further insight into their reliability and success rates.

How does the $22.8 million award compare to similar R&D contracts in wireless communications?

Comparing this $22.8 million R&D contract to similar ones requires access to a broader dataset of defense R&D awards within the wireless communications sector. However, for a multi-year R&D effort (1295 days, approximately 3.5 years), this amount appears moderate. Major defense R&D programs, especially those involving cutting-edge technology development or system integration, can often reach hundreds of millions or even billions of dollars. Smaller, more focused R&D projects or component-level research might fall into the single-digit millions. This contract's value suggests a significant but not exceptionally large investment, likely focused on a specific area of wireless communication technology development rather than a broad platform overhaul. Benchmarking would ideally involve looking at contracts with similar NAICS codes (334220) and contract types (Cost No Fee) awarded by DoD agencies over comparable timeframes.

What are the primary risks associated with this 'Cost No Fee' R&D contract?

The primary risk with a 'Cost No Fee' (CNF) contract is that the contractor, L3Harris NexGen Communications LLC, bears the financial risk of cost overruns. While this shifts risk away from the government, it can incentivize the contractor to minimize costs, potentially impacting the quality or scope of the R&D if not carefully managed and monitored. If the contractor underestimates the complexity or cost of the research, they might cut corners or fail to achieve the desired outcomes to avoid incurring losses. Another risk is that the contractor might prioritize less challenging aspects of the R&D to stay within budget, potentially limiting the innovation or technological advancement achieved. Effective oversight by the Department of Defense is crucial to ensure that the contractor remains motivated to deliver high-quality results despite the cost structure.

What does the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code imply for this contract?

The NAICS code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' indicates that this contract is focused on the research, development, or production of equipment used in wireless communication systems. This could encompass a wide range of technologies, including but not limited to, components for mobile communication networks, satellite communication systems, radar, electronic warfare systems, or specialized military communication devices. For the Department of Defense, this implies a need for advanced, reliable, and potentially secure wireless communication capabilities. The manufacturing aspect suggests that the R&D may lead to tangible hardware or prototypes, moving beyond theoretical research towards practical application within defense systems.

How does the contract duration of 1295 days impact the assessment of this award?

A contract duration of 1295 days, approximately 3.5 years, signifies a substantial commitment to a research and development project. This extended timeframe is typical for R&D efforts that require significant investigation, design, prototyping, and testing phases. It suggests that the Department of Defense is investing in a project with a long-term strategic objective, likely aimed at developing or significantly improving critical wireless communication technologies. The duration allows the contractor, L3Harris, ample time to explore complex technical challenges and iterate on solutions. From an assessment perspective, this long duration necessitates robust program management and oversight from the DoD to ensure progress is maintained, milestones are met, and the project remains aligned with evolving defense needs throughout its lifecycle.

What is the significance of the 'Cost No Fee' (CNF) contract type in this context?

The 'Cost No Fee' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used for R&D efforts where the scope is highly uncertain, and the government wants to encourage innovation without guaranteeing profit. For the DoD, a CNF contract places the primary financial risk on the contractor, L3Harris. This means L3Harris is responsible for any costs exceeding the estimated amount. This can be advantageous for the government, as it incentivizes the contractor to manage expenses diligently and potentially achieve the R&D objectives more cost-effectively. However, it requires careful monitoring to ensure the contractor does not compromise quality or scope to avoid losses.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 44965 AVIATION DR STE 400, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,859,391

Exercised Options: $22,859,391

Current Obligation: $22,859,391

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $98,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline