DOT awards $16.86M task order for computer systems design to L3Harris Technologies

Contract Overview

Contract Amount: $16,860,085 ($16.9M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-03-28

End Date: 2025-08-31

Contract Duration: 521 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CSS-WX OY6 TASK ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $16.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: CSS-WX OY6 TASK ORDER Key points: 1. Contract value represents a moderate investment in IT infrastructure support. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Performance period of over a year indicates a need for sustained services. 4. The contract type (Cost Plus Fixed Fee) requires careful monitoring of costs. 5. L3Harris Technologies is a large, established defense and aerospace contractor. 6. The task order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though the IDIQ details are not provided.

Value Assessment

Rating: fair

The contract value of $16.86 million for computer systems design services over approximately 17 months appears to be within a reasonable range for a task order of this nature. Without access to the specific scope of work and the underlying IDIQ contract's pricing structure, a precise value-for-money assessment is challenging. However, given the contractor's size and the nature of IT systems design, the price point is not immediately indicative of overpayment. Benchmarking against similar task orders for computer systems design services within the Federal Aviation Administration (FAA) or the Department of Transportation (DOT) would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive process was intended. The number of bidders and the specific evaluation criteria are not detailed in the provided data, which limits a deeper analysis of the competition's intensity. However, full and open competition generally fosters price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is designed to yield the best value through market forces, potentially leading to lower prices and higher quality services compared to less competitive procurement methods.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential computer systems design services. These services are critical for the ongoing operations and modernization of FAA's IT infrastructure. The contract is geographically focused on Florida, where the contractor's performance is likely centered. The contract supports specialized IT workforce roles within L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not adequately managed.
Lack of detailed scope of work and performance metrics makes it difficult to assess efficiency and effectiveness.
The duration of the contract (521 days) is substantial, requiring ongoing oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
L3Harris Technologies is a reputable contractor with significant experience in government contracts.
The task order is for computer systems design, a critical function for agency operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in modernizing and maintaining their digital infrastructure. Comparable spending benchmarks for IT services within the Department of Transportation and the FAA would typically range from millions to tens of millions of dollars for task orders of this nature, depending on complexity and duration. L3Harris Technologies operates within the broader aerospace, defense, and IT services market, which is characterized by large, complex contracts and a mix of government and commercial clients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting opportunities for small businesses mandated by a set-aside provision within this specific task order. The prime contractor, L3Harris Technologies, is a large business, and while they may engage small businesses as subcontractors on other contracts or as part of their broader supply chain, this particular award does not inherently create set-aside opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this task order would primarily reside with the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The Department of Transportation's Office of Inspector General (OIG) may also conduct audits or investigations related to IT spending and contract management to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, but detailed performance metrics and cost breakdowns are often not publicly available.

Related Government Programs

Federal Aviation Administration IT Modernization Programs
Department of Transportation Enterprise IT Services
Computer Systems Design and Related Services (NAICS 541512)
Large Business IT Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited public information on specific scope of work and performance metrics.
Contract duration necessitates ongoing monitoring for sustained value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.9 million to L3HARRIS TECHNOLOGIES, INC.. CSS-WX OY6 TASK ORDER

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2024-03-28. End: 2025-08-31.

What is the specific scope of work for this task order and how does it align with the FAA's broader IT strategy?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541512, 'Computer Systems Design Services.' This generally encompasses services such as designing, developing, and implementing software and hardware solutions, as well as IT consulting. However, the specific scope of work for this $16.86 million task order awarded to L3Harris Technologies is not detailed. To understand its alignment with the FAA's IT strategy, one would need to consult the task order's statement of work (SOW) and compare it against the FAA's strategic IT plans, such as those related to air traffic control modernization, cybersecurity enhancements, or data analytics initiatives. Without the SOW, it's impossible to determine the precise services being procured and their strategic relevance.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact cost control and value for money?

The Cost Plus Fixed Fee (CPFF) contract type involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. While CPFF contracts can be useful when the scope of work is not precisely defined or is subject to change, they carry inherent risks for cost control. The contractor has less incentive to control costs aggressively because their profit (the fixed fee) is not directly tied to cost savings. Conversely, the government bears a greater risk of cost overruns if the contractor's actual costs exceed estimates. Effective oversight, detailed cost monitoring, and robust negotiation of the fixed fee are crucial to ensure value for money under a CPFF arrangement. Without such measures, there's a potential for costs to escalate beyond what might be achieved under a fixed-price contract.

What is L3Harris Technologies' track record with the FAA and DOT, particularly on similar IT services contracts?

L3Harris Technologies is a major defense contractor with extensive experience in providing complex technology solutions to government agencies, including the Department of Defense and NASA. While specific details on their historical performance with the Federal Aviation Administration (FAA) or the broader Department of Transportation (DOT) for IT services are not provided in this data snippet, their established presence in the federal contracting space suggests a significant track record. To assess their performance on similar contracts, one would typically review past performance evaluations, contract award history, and any reported issues or successes in federal procurement databases. Given their size and market position, it is likely they have been awarded numerous contracts for IT and systems integration services across various federal agencies.

Are there any indications of potential risks associated with this contract, such as performance issues or cost overruns?

The provided data does not contain explicit indicators of performance issues or anticipated cost overruns for this specific task order. However, certain aspects warrant attention. The CPFF contract type, as mentioned, carries an inherent risk of cost escalation if not managed diligently. The duration of the contract (521 days) is substantial, increasing the potential for unforeseen challenges or scope creep over time. Furthermore, the lack of detailed performance metrics or specific deliverables in the summary data makes it difficult to proactively assess performance risks. A thorough risk assessment would require examining the detailed SOW, performance standards, and the contractor's past performance history with the agency.

How does this $16.86 million task order compare to overall federal spending on computer systems design services?

The $16.86 million task order represents a modest portion of the overall federal spending on computer systems design services. Federal agencies collectively spend tens of billions of dollars annually on IT services, including system design, development, integration, and maintenance. The NAICS code 541512 (Computer Systems Design Services) alone accounts for a significant portion of this spending. While $16.86 million is a substantial sum for a single task order, it is relatively small when viewed against the backdrop of the entire federal IT budget. This particular award to L3Harris Technologies for the FAA is one of many such contracts supporting agency operations and modernization efforts across the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 150 S WICKHAM RD, MELBOURNE, FL, 32904

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: $16,860,085

Exercised Options: $16,860,085

Current Obligation: $16,860,085

Actual Outlays: $16,581,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00003

IDV Type: IDC

Timeline