DOT Awards $1.87B for FTI Telecom Services to Harris Corp Under Full and Open Competition
Contract Overview
Contract Amount: $1,869,732,551 ($1.9B)
Contractor: Harris Corporation
Awarding Agency: Department of Transportation
Start Date: 2021-07-01
End Date: 2024-09-30
Contract Duration: 1,187 days
Daily Burn Rate: $1.6M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of Transportation obligated $1.87 billion to HARRIS CORPORATION for work described as: THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES. Key points: 1. Significant award value highlights the scale of telecommunications needs. 2. Harris Corporation is a major player, indicating a competitive landscape. 3. Risk appears moderate given the established provider and contract type. 4. IT/Telecommunications sector is crucial for government operations.
Value Assessment
Rating: good
The contract value is substantial, but without specific per-unit data or comparison points, a precise value assessment is difficult. The firm fixed price structure suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The pricing discovery process is likely robust.
Taxpayer Impact: The competitive award process aims to maximize taxpayer value by securing favorable pricing for essential telecommunications services.
Public Impact
Ensures continued operation of critical FAA telecommunications infrastructure. Supports national air traffic control and communication systems. Impacts the broader telecommunications industry through a large government contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single vendor for critical infrastructure.
- Long-term contract duration may lead to price increases over time.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Supports essential government functions.
Sector Analysis
This award falls within the IT and Telecommunications sector, a vital area for government operations. Spending benchmarks for similar large-scale telecommunications contracts can vary widely based on scope and technology.
Small Business Impact
The data indicates the awardee is Harris Corporation, a large business. There is no explicit mention of small business participation in this specific award, suggesting limited direct impact on SMBs for this contract.
Oversight & Accountability
The award was made under full and open competition, suggesting a structured procurement process. Oversight will be crucial to ensure performance and adherence to contract terms throughout the duration.
Related Government Programs
- Telecommunications Resellers
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for vendor lock-in due to critical infrastructure reliance.
- Risk of technology obsolescence if services are not regularly updated.
- Dependence on a single large contractor for essential services.
- Long contract duration increases exposure to market shifts.
Tags
telecommunications-resellers, department-of-transportation, dc, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $1.87 billion to HARRIS CORPORATION. THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES.
Who is the contractor on this award?
The obligated recipient is HARRIS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $1.87 billion.
What is the period of performance?
Start: 2021-07-01. End: 2024-09-30.
What specific telecommunications services are included in this delivery order, and how do they align with current and future FAA operational needs?
The delivery order is for FTI Telecommunications Services. While the exact breakdown isn't provided, these services typically encompass voice, data, and video communication infrastructure, crucial for air traffic control, operational coordination, and administrative functions. Ensuring these services remain modern and scalable is key to meeting evolving FAA requirements.
What mechanisms are in place to manage potential cost increases or scope creep over the nearly four-year contract period?
As a firm fixed-price contract, the primary mechanism is the agreed-upon price. However, change order processes and contract modifications would be used for any scope expansion. Robust oversight by the FAA contracting officer and technical representatives is essential to scrutinize any proposed changes and prevent uncontrolled cost increases.
How does the performance of Harris Corporation on this contract compare to industry benchmarks for similar telecommunications services?
Performance benchmarks would typically involve metrics like uptime, service availability, incident response times, and customer satisfaction. Without specific performance data from this contract, a direct comparison is not possible. However, Harris Corporation's status as a major contractor suggests they are expected to meet established industry standards for reliability and service quality.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications Carriers › Telecommunications Resellers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 243 SHOEMAKER RD, POTTSTOWN, PA, 19464
Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $108,853,073,270
Exercised Options: $1,869,732,551
Current Obligation: $1,869,732,551
Actual Outlays: $1,315,474,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTFA0102D03006
IDV Type: IDC
Timeline
Start Date: 2021-07-01
Current End Date: 2024-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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