DOT awards $5.7M task order for computer systems design services to L3Harris Technologies

Contract Overview

Contract Amount: $5,689,961 ($5.7M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-09-02

End Date: 2026-03-31

Contract Duration: 210 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CSS-WX OY7 TASK ORDER

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $5.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: CSS-WX OY7 TASK ORDER Key points: 1. Value for money assessed against similar IT services contracts. 2. Competition dynamics indicate a robust bidding environment. 3. Risk indicators are moderate, focusing on performance and delivery timelines. 4. Performance context tied to ongoing FAA IT modernization efforts. 5. Sector positioning within the broader federal IT services market. 6. Contract type is Cost Plus Fixed Fee, requiring careful cost monitoring.

Value Assessment

Rating: good

The contract value of approximately $5.7 million for computer systems design services appears reasonable when benchmarked against similar IT support contracts awarded by the Federal Aviation Administration and other Department of Transportation agencies. The Cost Plus Fixed Fee (CPFF) pricing structure necessitates close oversight to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for their effort without excessive profit. While specific per-unit cost data is not available, the overall contract value aligns with industry standards for complex system design and integration projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive process designed to solicit the best value. This approach typically leads to more favorable pricing and innovative solutions as contractors vie for the award.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government receives high-quality services at a fair price.

Public Impact

Benefits the Federal Aviation Administration by providing essential computer systems design services. Supports the modernization and efficiency of FAA's IT infrastructure. Geographic impact is primarily within Florida, where the contractor is located, but the services support national FAA operations. Workforce implications include specialized IT design and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require diligent oversight to manage costs and ensure the fixed fee remains appropriate.
The duration of the contract (210 days) is relatively short, which may limit the scope of complex system design and integration.
Reliance on a single task order for critical system design could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield good value.
Contractor L3Harris Technologies is a known entity in the aerospace and defense sector, suggesting experience with complex government contracts.
The task order is for a defined period, allowing for reassessment of needs and contractor performance upon completion.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the FAA consistently seeking specialized expertise for system design, development, and maintenance. This contract falls within the Computer Systems Design Services NAICS code (541512), a segment characterized by a mix of large prime contractors and smaller specialized firms. Spending in this category often supports critical infrastructure upgrades and modernization efforts across various government functions. Benchmarks for similar IT services contracts typically range widely based on complexity, duration, and specific skill sets required.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like L3Harris Technologies suggests that the primary focus was on specialized capabilities rather than small business participation. This may limit opportunities for small businesses to engage directly with this specific procurement, although they may participate as subcontractors to the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to track expenditures against the estimated cost and ensure the fixed fee is justified. Transparency is generally maintained through contract reporting mechanisms, and while specific Inspector General (IG) involvement isn't detailed here, the DOT OIG has jurisdiction over agency spending and could investigate if performance or cost issues arise.

Related Government Programs

FAA IT Modernization Programs
Department of Transportation IT Services
Computer Systems Design and Integration Contracts
Federal Aviation Administration Procurement

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires vigilant oversight.
Short contract duration may limit scope and require follow-on work.
Potential for cost escalation in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.7 million to L3HARRIS TECHNOLOGIES, INC.. CSS-WX OY7 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 $5.7 million.

What is the period of performance?

Start: 2025-09-02. End: 2026-03-31.

What is L3Harris Technologies' track record with the Federal Aviation Administration and Department of Transportation?

L3Harris Technologies has a significant history of contracting with various U.S. government agencies, including the Department of Defense and NASA. While specific details on their past performance with the Federal Aviation Administration (FAA) and the broader Department of Transportation (DOT) require deeper database analysis, their established presence in the aerospace and defense sectors suggests experience with complex, large-scale government IT projects. Analyzing past FAA and DOT contracts awarded to L3Harris would reveal their performance history, including any awards, penalties, or significant issues encountered on similar projects. This context is crucial for assessing the reliability and capability of the contractor for the current task order.

How does the $5.7 million value compare to similar FAA computer systems design contracts?

The $5.7 million value for this task order is within a common range for specialized computer systems design services procured by the FAA. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and complexity. For instance, contracts focused on core infrastructure upgrades or large-scale software development might exceed this amount, while smaller, more focused design tasks could be less. The Cost Plus Fixed Fee (CPFF) structure also influences the perceived value, as the final cost can fluctuate. Benchmarking would ideally involve comparing the estimated cost and fixed fee against the deliverables and expected outcomes of comparable FAA IT projects awarded through full and open competition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for system design?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for system design lies in cost control and potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If these costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient execution, the total contract value can increase significantly. This necessitates robust government oversight to scrutinize all claimed costs, ensure they are reasonable and allocable, and manage any changes to the contract's scope. For system design, risks also include the possibility that the final design may not fully meet evolving requirements or integrate seamlessly with existing systems if not managed proactively.

How effective is full and open competition in ensuring value for money for IT services like this?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT services procurements. By allowing all responsible sources to submit bids, it creates a competitive environment where contractors are incentivized to offer their best pricing and most innovative solutions to win the contract. This process enhances price discovery and allows the government to select the offer that represents the best overall value, considering both technical merit and cost. For complex services like computer systems design, a competitive field can bring diverse approaches and potentially uncover more cost-effective or technically superior solutions than a limited or sole-source award might.

What is the historical spending trend for computer systems design services at the FAA?

Historical spending on computer systems design services at the FAA has generally trended upwards over the past decade, reflecting the agency's continuous need to modernize its complex air traffic control systems, IT infrastructure, and data management capabilities. The FAA consistently invests in IT to enhance safety, efficiency, and capacity. Spending in this category often fluctuates based on specific modernization initiatives, system upgrades, and the lifecycle of existing technologies. Analyzing FAA's budget allocations and contract awards for NAICS code 541512 (Computer Systems Design Services) would reveal patterns of investment, identifying periods of high spending driven by major projects and periods of more routine maintenance and support.

What are the potential implications of this contract's short duration (210 days) on system design outcomes?

A contract duration of 210 days (approximately 7 months) for computer systems design services suggests a focus on a specific, well-defined phase or component of a larger system design project. This short timeframe may be suitable for tasks like requirements analysis, preliminary design, proof-of-concept development, or the design of a specific module. However, it could be insufficient for comprehensive, end-to-end system design, especially for complex, mission-critical systems like those used by the FAA. The limited duration might necessitate a phased approach, with subsequent contracts needed for detailed design, implementation, and testing. It also implies that the contractor must be highly efficient and that the scope must be tightly controlled to achieve meaningful outcomes within the allotted time.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $5,689,961

Exercised Options: $5,689,961

Current Obligation: $5,689,961

Actual Outlays: $3,575,440

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