NOAA Awards $24.8M Contract to L3Harris for Radio Frequency Interference Monitoring System Services

Contract Overview

Contract Amount: $24,797,078 ($24.8M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2023-02-09

End Date: 2025-04-11

Contract Duration: 792 days

Daily Burn Rate: $31.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATION MAINTENANCE AND SUSTAINMENT SERVICES

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32902

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $24.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATION MAINTENANCE AND SUSTAINMENT SERVICES Key points: 1. Contract awarded to a single, large business vendor. 2. The contract is for operation, maintenance, and sustainment services. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. The sector is Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.

Value Assessment

Rating: fair

The contract value of $24.8M over approximately 2 years appears reasonable for specialized monitoring system services. However, without specific performance metrics or benchmarks for similar sustainment contracts, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive procurement.

Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential services.

Public Impact

Ensures continued operation of critical radio frequency monitoring systems. Supports NOAA's mission in managing and protecting the radio spectrum. Potential impact on future spectrum allocation and management policies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type can incentivize cost overruns.
  • Lack of small business participation noted.

Positive Signals

  • Essential services for NOAA's spectrum management mission.
  • Long-term sustainment ensures system reliability.

Sector Analysis

The contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is often driven by technological advancements and regulatory needs for spectrum management.

Small Business Impact

This contract does not appear to have any specific provisions for small business participation. The award to a large business vendor suggests limited opportunities for small businesses in this particular procurement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Regular performance reviews and cost audits are crucial for accountability.

Related Government Programs

  • Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
  • Department of Commerce Contracting
  • National Oceanic and Atmospheric Administration Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of small business participation
  • Potential for cost escalation

Tags

radio-and-television-broadcasting-and-wi, department-of-commerce, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $24.8 million to L3HARRIS TECHNOLOGIES, INC.. RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATION MAINTENANCE AND SUSTAINMENT SERVICES

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2023-02-09. End: 2025-04-11.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. Agencies must conduct market research to confirm this and negotiate the best possible price, often through detailed cost analysis and audits, to mitigate the lack of competition.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type carries a risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts. This can lead to higher overall spending if not closely monitored and managed by the agency.

How does this contract contribute to NOAA's overall mission effectiveness in spectrum management?

This contract is crucial for the effective operation and sustainment of the Radio Frequency Interference Monitoring System. This system is vital for NOAA's mandate to monitor, manage, and protect the radio frequency spectrum, ensuring its efficient and interference-free use for various critical applications, thereby supporting national security and economic activities.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1332KP22RNEEG0006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905

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

Financial Breakdown

Contract Ceiling: $49,015,914

Exercised Options: $24,797,078

Current Obligation: $24,797,078

Actual Outlays: $15,574,732

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $3,612,579

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-02-09

Current End Date: 2025-04-11

Potential End Date: 2028-02-08 00:00:00

Last Modified: 2025-02-04

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