Commerce Awards L3Harris $5.66M for Other Computer Services, Boosting Total Contract Value to $16.99M
Contract Overview
Contract Amount: $16,998,000 ($17.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Commerce
Start Date: 2004-02-24
End Date: 2008-09-30
Contract Duration: 1,680 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ADD FUNDS IN THE AMOUNT OF $5,666,000
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32902
State: Florida Government Spending
Plain-Language Summary
Department of Commerce obligated $17.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ADD FUNDS IN THE AMOUNT OF $5,666,000 Key points: 1. Contract value increased by $5.66M, bringing the total to $16.99M. 2. L3Harris Technologies, Inc. is the sole awardee. 3. The contract is for 'Other Computer Related Services' (NAICS 541519). 4. Awarded under full and open competition, suggesting a competitive process. 5. The contract type is Cost Plus Award Fee (CPAF).
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential overruns if performance targets are not met. The total award value of $16.99M needs to be assessed against similar IT service contracts for comparable scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The additional $5.66M increases the total taxpayer investment. While competition is intended to ensure value, the CPAF structure requires careful monitoring to control costs.
Public Impact
Enhances IT infrastructure and services for the U.S. Census Bureau. Supports critical data collection and processing operations. Potential for technological advancements in computer-related services. Ensures continuity of essential government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess award fee justification.
- Potential for scope creep given the nature of 'Other Computer Related Services'.
Positive Signals
- Awarded under full and open competition.
- Established contractor with a history of government service.
- Contract supports critical Census Bureau operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, supporting a wide range of digital operations and infrastructure.
Small Business Impact
The data indicates this contract was awarded to L3Harris Technologies, Inc., a large business. There is no explicit indication of small business participation or subcontracting in the provided details.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight to ensure performance targets are met and that award fees are justified. The Department of Commerce and the U.S. Census Bureau are responsible for monitoring contractor performance and expenditures.
Related Government Programs
- Other Computer Related Services
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure.
- Broad 'Other Computer Related Services' category.
- No explicit mention of small business subcontracting.
- Contract duration of 1680 days (approx. 4.6 years).
Tags
other-computer-related-services, department-of-commerce, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $17.0 million to L3HARRIS TECHNOLOGIES, INC.. ADD FUNDS IN THE AMOUNT OF $5,666,000
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $17.0 million.
What is the period of performance?
Start: 2004-02-24. End: 2008-09-30.
What specific services are included under 'Other Computer Related Services' and how do they align with the Census Bureau's mission?
The 'Other Computer Related Services' category is broad and can encompass a variety of IT support functions not classified elsewhere. For the Census Bureau, this likely includes services such as IT system maintenance, network support, data processing assistance, software development or integration, and potentially cybersecurity measures. The alignment with the mission depends on how these services directly contribute to the accurate and timely collection, processing, and dissemination of statistical data essential for national understanding and policy-making.
How does the Cost Plus Award Fee (CPAF) structure incentivize L3Harris to control costs while ensuring high performance?
The CPAF structure aims to incentivize both cost control and high performance by allowing the contractor to earn a base fee plus an award fee. The base fee covers costs, while the award fee is contingent upon meeting or exceeding specific performance objectives defined in the contract. This means L3Harris is motivated to perform exceptionally well to maximize its total compensation. However, effective oversight is crucial to ensure the performance metrics are rigorous and that award fees are genuinely earned, preventing excessive costs.
What is the benchmark pricing for similar 'Other Computer Related Services' contracts awarded by the government?
Benchmarking pricing for 'Other Computer Related Services' (NAICS 541519) requires detailed analysis of contract scope, duration, labor categories, and geographic location. Generally, IT services contracts can range significantly in price per hour or per deliverable. Factors like the complexity of the services, the level of expertise required, and the competitive landscape influence pricing. Without specific details on the tasks performed under this $16.99M contract, a precise benchmark is difficult, but it should be compared against other CPAF contracts for similar IT support services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2400 PALM BAY RD NE, MELBOURNE, FL, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $629,959,122
Exercised Options: $106,137,732
Current Obligation: $16,998,000
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2004-02-24
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2011-10-26
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