DoD Awards $18.6M for Communication Equipment Repair, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $10,597,829 ($10.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-09-14
End Date: 2004-09-30
Contract Duration: 1,112 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 200112!000559!9700!ZD10 !DISA, NATIONAL CAPITAL REGION !DCA10098D0052 !A!N!*!N!0040 !20010914!20020813!186006136!186006136!004203337!N!HARRIS TECHNICAL SERVICES CORP!1201 E ABINGDON DRIVE SUI!ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000004836245!N!N!000000000000!AZ15!RDTE/OTHER RESEARCH & DEVELOPMENT-ENG/MANUF DEVEL !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !811213!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!Y!2!002!B! !C!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!D!N! ! ! ! ! ! !0001!
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200112!000559!9700!ZD10 !DISA, NATIONAL CAPITAL REGION !DCA10098D0052 !A!N!*!N!0040 !20010914!20020813!186006136!186006136!004203337!N!HARRIS TECHNICAL SERVICES CORP!1201 E ABINGDON DRIVE SUI!ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXA… Key points: 1. Contract awarded to Harris Technical Services Corp for communication equipment repair. 2. Significant portion of contract value ($18.6M) allocated to R&D/Engineering. 3. Potential for cost overruns indicated by 'questionable' value assessment. 4. Sector focus on IT/Defense, specifically communication equipment maintenance.
Value Assessment
Rating: questionable
The contract value of $18.6M appears high for communication equipment repair and maintenance, especially considering the 'Time and Materials' pricing structure which can lead to cost escalation. Benchmarking against similar contracts is difficult without more granular data.
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, the 'Time and Materials' pricing model may limit price discovery and could lead to higher costs than fixed-price contracts.
Taxpayer Impact: The potential for cost overruns and the 'Time and Materials' pricing could result in taxpayers paying more than necessary for these services.
Public Impact
Ensures continued operation of critical communication systems for the Department of Defense. Supports a specific region (National Capital Region), impacting local military readiness. Potential for increased costs impacts overall defense budget allocation. Contractor's performance could affect the reliability of communication networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics in provided data.
- Contract duration is relatively long (over 1 year).
Positive Signals
- Awarded under full and open competition.
- Contractor has a history of performance (implied by award).
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the maintenance and repair of communication equipment. Spending benchmarks for this type of service can vary widely based on the complexity and criticality of the equipment.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Harris Technical Services Corp, is a subsidiary of L3Harris Technologies, a large corporation, suggesting limited direct opportunities for small businesses on this prime contract.
Oversight & Accountability
The contract was awarded by DISA, a Defense agency known for its IT and communication services. Oversight would typically involve the Defense Contract Management Agency (DCMA) to ensure compliance with terms and conditions, especially given the Time and Materials nature.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns.
- Lack of detailed performance metrics.
- Reliance on Time and Materials pricing.
- Complexity of R&D/Engineering component.
- Limited visibility into small business participation.
Tags
communication-equipment-repair-and-maint, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to L3HARRIS TECHNOLOGIES, INC.. 200112!000559!9700!ZD10 !DISA, NATIONAL CAPITAL REGION !DCA10098D0052 !A!N!*!N!0040 !20010914!20020813!186006136!186006136!004203337!N!HARRIS TECHNICAL SERVICES CORP!1201 E ABINGDON DRIVE SUI!ALEXANDRIA !VA!22314!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000004836245!N!N!000000000000!AZ15!RDTE/OTHER RESEARCH & DEVELOPMENT-ENG/MANUF DEVEL !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !811213!*!*!5!B!S! !*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2001-09-14. End: 2004-09-30.
What is the specific breakdown of costs between labor and materials, and how are material costs controlled?
The provided data does not detail the cost breakdown between labor and materials. For Time and Materials contracts, cost controls on materials are crucial. Agencies should ensure fair market prices are paid for materials and that the contractor provides adequate documentation for all material purchases to prevent overcharging.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?
Key performance indicators are not explicitly detailed in the provided data. Effective oversight requires clearly defined KPIs related to response times, repair quality, equipment uptime, and adherence to schedules. Regular performance reviews by the contracting officer's representative (COR) are essential to ensure the contractor meets these standards.
How does the 'RDTE/OTHER RESEARCH & DEVELOPMENT-ENG/MANUF DEVEL' classification impact the overall value and risk assessment?
The inclusion of R&D/Engineering/Manufacturing Development suggests the contract may involve more than just routine repair, potentially including upgrades, modifications, or development of new capabilities. This increases complexity and risk, justifying a 'questionable' value assessment due to the inherent uncertainties in R&D outcomes and cost estimation.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DCA10098D0052
IDV Type: IDC
Timeline
Start Date: 2001-09-14
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2018-08-21
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