DoD Spends $116M on Ophthalmic Goods Manufacturing, Awarded to Harris Corporation via Full and Open Competition
Contract Overview
Contract Amount: $116,242,434 ($116.2M)
Contractor: Harris Corporation
Awarding Agency: Department of Defense
Start Date: 2010-08-10
End Date: 2018-02-28
Contract Duration: 2,759 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENVG(O) TEST ARTICLES
Place of Performance
Location: ROANOKE, ROANOKE County, VIRGINIA, 24019
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $116.2 million to HARRIS CORPORATION for work described as: ENVG(O) TEST ARTICLES Key points: 1. Significant spending on specialized ophthalmic goods. 2. Harris Corporation is the sole awardee, indicating potential market concentration. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. Long contract duration (2759 days) suggests a stable, long-term need.
Value Assessment
Rating: fair
The contract value of $116.2 million over nearly 8 years for ophthalmic goods appears substantial. Benchmarking against similar specialized defense contracts is difficult without more granular data on the specific items procured.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, with only one awardee (Harris Corporation), it raises questions about the breadth of participation and the effectiveness of market outreach.
Taxpayer Impact: Taxpayers funded a significant contract for specialized defense equipment. While competition was sought, the single awardee warrants scrutiny to ensure value for money.
Public Impact
Ensures availability of critical ophthalmic equipment for military personnel. Supports a specific manufacturing sector within the defense industrial base. Potential for technological advancements in military-grade eyewear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee despite full and open competition.
- Long contract duration may not reflect evolving needs.
- Lack of small business participation noted.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Awarded under full and open competition.
- Addresses a specific defense requirement.
Sector Analysis
This contract falls within the broader defense manufacturing sector, specifically focusing on specialized ophthalmic goods. Spending benchmarks for such niche items are not readily available, but the $116M value indicates a significant procurement.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the nature of the procurement or the prime contractor's strategy may have excluded smaller businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, implying standard oversight procedures. However, the long duration and single awardee warrant closer examination of performance and ongoing market dynamics.
Related Government Programs
- Ophthalmic Goods Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition despite 'full and open' designation.
- Potential for vendor lock-in with a single awardee.
- Long contract duration may not align with rapid technological change.
- No small business participation.
- Limited transparency on specific product details and justification for cost.
Tags
ophthalmic-goods-manufacturing, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.2 million to HARRIS CORPORATION. ENVG(O) TEST ARTICLES
Who is the contractor on this award?
The obligated recipient is HARRIS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $116.2 million.
What is the period of performance?
Start: 2010-08-10. End: 2018-02-28.
What specific ophthalmic goods were procured, and how do their technical specifications compare to commercial equivalents to justify the contract's value?
The specific ophthalmic goods procured are not detailed in the provided data. To assess value, a comparison of technical specifications against commercial equivalents and an analysis of the unique military requirements would be necessary. Factors like durability, specialized lenses, or protective features could justify higher costs compared to standard eyewear.
Given the full and open competition, why did only one company, Harris Corporation, submit a successful bid for this substantial contract?
Several factors could explain a single award despite open competition. Harris Corporation might possess unique proprietary technology, extensive experience in military-grade optics, or have submitted the most competitive bid. Alternatively, the solicitation's requirements might have inadvertently favored a single bidder, or market research may not have identified sufficient interested and capable competitors.
How effectively has this long-term contract ensured the delivery of necessary ophthalmic equipment while remaining adaptable to potential technological advancements or changes in military needs?
The effectiveness of this long-term contract in adapting to changes is uncertain without performance data. While a firm fixed-price contract offers cost predictability, it can sometimes hinder flexibility for incorporating new technologies or adapting to evolving operational requirements. Periodic reviews and potential contract modifications would be crucial for ensuring continued relevance and effectiveness.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Ophthalmic Goods Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB09R0089
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 7635 PLANTATION RD, ROANOKE, VA, 24019
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $187,461,765
Exercised Options: $118,328,892
Current Obligation: $116,242,434
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $30,971,226
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-10
Current End Date: 2018-02-28
Potential End Date: 2018-02-28 00:00:00
Last Modified: 2018-07-30
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