DOT's $1.55B Telecommunications Resellers contract to Harris Corporation shows strong competition and long-term performance

Contract Overview

Contract Amount: $1,546,788,598 ($1.5B)

Contractor: Harris Corporation

Awarding Agency: Department of Transportation

Start Date: 2008-07-25

End Date: 2025-09-30

Contract Duration: 6,276 days

Daily Burn Rate: $246.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $1.55 billion to HARRIS CORPORATION for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Contract awarded through full and open competition, indicating a robust market. 2. Long contract duration suggests sustained need and potential for stable pricing. 3. Favorable pricing compared to similar contracts is a key value indicator. 4. Performance context is strong, with no major risk flags identified. 5. Sector positioning within telecommunications is well-defined. 6. The contract's value is significant within the broader federal IT spending landscape.

Value Assessment

Rating: good

The contract's total value of $1.55 billion over its extended period suggests a significant investment. Benchmarking against similar telecommunications reseller contracts is crucial for a definitive value assessment. However, the firm fixed-price structure generally promotes cost control for the government. The long duration, while indicating sustained need, also necessitates careful monitoring to ensure continued value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were able to bid. The presence of 3 bids indicates a healthy level of competition for this telecommunications reseller requirement. This competitive environment is generally favorable for price discovery and achieving market-based rates.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government benefited from multiple offers to select the most advantageous one.

Public Impact

Benefits the Department of Transportation by providing essential telecommunications services. Ensures reliable communication infrastructure for FAA operations. Supports the Florida region with telecommunications services. The contract likely supports a workforce involved in telecommunications management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded via full and open competition, indicating a competitive marketplace.
Firm Fixed Price contract type helps control costs.
Long contract duration (over 5 years) suggests sustained demand and potential for economies of scale.
No reported performance issues or risk flags.

Sector Analysis

This contract falls within the broader IT and telecommunications sector, specifically focusing on reseller services. The federal government is a significant consumer of telecommunications, with spending often spread across various agencies and needs, from basic connectivity to specialized data transmission. Comparable spending benchmarks would involve analyzing other large-scale telecommunications contracts awarded by agencies like the DoD or GSA.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the large contract value, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of accountability. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Federal Aviation Administration Telecommunications Services
Department of Transportation IT Procurement
Government Wide Acquisition Contracts (GWACs) for Telecommunications

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.55 billion to HARRIS CORPORATION. DAFIS UDO RECONSTRUCT W/O ADVANCE

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 $1.55 billion.

What is the period of performance?

Start: 2008-07-25. End: 2025-09-30.

What is the historical spending trend for telecommunications resellers by the Federal Aviation Administration?

Historical spending data for telecommunications resellers by the Federal Aviation Administration (FAA) would reveal patterns of demand and investment in this area. Analyzing past contract awards, including their values, durations, and awarded contractors, can provide insights into the agency's evolving needs and its reliance on external vendors for these services. For instance, a consistent increase in spending might indicate growing operational requirements or a shift towards outsourcing these functions. Conversely, a decrease could suggest internalizing services or a consolidation of contracts. Without specific historical data for this contract vehicle, it's difficult to provide precise figures, but generally, federal agencies maintain significant budgets for telecommunications to support their vast operational networks.

How does the pricing of this contract compare to other similar telecommunications reseller contracts awarded by the federal government?

To assess the pricing of this contract, a benchmark analysis against similar telecommunications reseller contracts awarded by other federal agencies or even within the Department of Transportation (DOT) itself would be necessary. Key metrics for comparison would include per-unit costs for services like bandwidth, voice lines, or data services, as well as overall contract value relative to the scope of services provided. The firm fixed-price (FFP) nature of this contract is a positive indicator for cost control, as it shifts the risk of cost overruns to the contractor. However, the actual value for money depends on whether the negotiated rates are competitive within the current market for telecommunications services.

What are the primary risks associated with a long-duration contract like this for telecommunications services?

Long-duration contracts, such as this one extending to September 2025, carry several potential risks. Technological obsolescence is a significant concern; telecommunications technology evolves rapidly, and a contract spanning several years might lock the government into outdated or less efficient solutions. Price escalation, despite the FFP structure, can be a risk if market conditions change drastically or if contract modifications are frequent. Vendor lock-in is another risk, where the government becomes heavily reliant on a single provider, potentially reducing leverage in future negotiations. Furthermore, performance degradation over time or a decline in the vendor's financial stability could impact service delivery. Regular performance reviews and market scans are crucial to mitigate these risks.

What is the track record of Harris Corporation in fulfilling federal telecommunications contracts?

Harris Corporation, now L3Harris Technologies, has a substantial track record in fulfilling federal telecommunications and defense contracts. They are a well-established prime contractor for various government agencies, including the Department of Defense and civilian agencies. Their experience typically spans a wide range of services, including satellite communications, network infrastructure, and advanced communication systems. Past performance on similar contracts would be a key factor in the FAA's decision-making process for awarding this delivery order. A review of their past performance ratings, any past disputes, or contract terminations would provide a more detailed picture of their reliability and capability in delivering complex telecommunications solutions.

How does the number of bidders (3) impact the potential value for money for the government?

A competition with three bidders is generally considered a healthy level of competition, offering a good balance between encouraging multiple offers and avoiding overly complex procurement processes. With three bidders, the government likely received a range of proposals and pricing, allowing for effective price discovery and negotiation. This number suggests that the market is sufficiently robust to support multiple capable vendors for this type of service. While more bidders could theoretically drive prices lower, three bidders often represent a strong competitive dynamic that can yield favorable terms for the government without excessive administrative burden.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Telecommunications Resellers

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $1,698,999,261

Exercised Options: $1,580,134,281

Current Obligation: $1,546,788,598

Actual Outlays: $466,572,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline