DOT awards $638M for telecommunications resellers, with Harris Corp. as primary contractor

Contract Overview

Contract Amount: $638,022,946 ($638.0M)

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: $101.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

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 $638.0 million to HARRIS CORPORATION for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Contract value represents significant investment in telecommunications infrastructure. 2. Competition dynamics suggest a robust bidding process for this requirement. 3. Performance period extends over a decade, indicating long-term need. 4. Sector positioning places this within the broader IT and telecommunications landscape. 5. Risk indicators appear manageable given the contract's nature and duration.

Value Assessment

Rating: good

The contract's total value of $638 million over its lifespan suggests a substantial investment. Benchmarking against similar large-scale telecommunications reseller contracts is challenging without more specific service details. However, the firm-fixed-price structure generally provides cost certainty for the government. The duration of the contract (over 13 years including options) implies a stable, long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors strive to offer the best value and most competitive pricing to win awards.

Public Impact

Benefits the Department of Transportation by ensuring access to essential telecommunications services. Supports the operational needs of the Federal Aviation Administration (FAA). Geographic impact is national, supporting FAA operations across the United States. Workforce implications are primarily within the telecommunications and IT support sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single primary contractor (Harris Corporation) for a significant portion of services.
Potential for scope creep if requirements evolve significantly over the contract's extended period.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides cost predictability.
Long-term nature indicates a stable and ongoing need for critical services.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on telecommunications resellers. This sector is characterized by rapid technological advancements and a wide range of service providers. The market size for government telecommunications services is substantial, with agencies like the FAA requiring robust and reliable communication networks. This contract appears to be a significant procurement within the FAA's IT infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors, which is common in large IT and telecommunications procurements.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies some aspects of financial oversight. Accountability measures are embedded in the contract terms and performance requirements. Transparency is generally maintained through federal contract databases like FPDS. The Inspector General for the Department of Transportation would have jurisdiction for oversight and investigation of potential fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in due to extended reliance on a single provider.
Need for ongoing monitoring to ensure competitive pricing is maintained throughout the contract life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $638.0 million 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 $638.0 million.

What is the period of performance?

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

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

Analyzing historical spending on telecommunications resellers by the FAA requires access to detailed procurement data over multiple fiscal years. While this specific contract is valued at approximately $638 million over its period of performance, understanding the broader trend involves examining prior contracts for similar services. Factors such as technological shifts, agency-wide modernization efforts, and changes in telecommunications market pricing would influence these patterns. A comprehensive review would likely show fluctuations based on specific program needs and budget allocations, but a sustained investment in reliable communication infrastructure is evident given the long-term nature of this award.

How does the pricing structure of this contract compare to industry benchmarks for similar telecommunications reseller services?

The firm-fixed-price (FFP) structure of this contract provides a predictable cost for the government, which is a positive attribute. However, without detailed line-item pricing and specific service level agreements, a direct comparison to industry benchmarks is difficult. Telecommunications reseller services can vary widely in scope, including hardware, software, maintenance, and support. To assess value-for-money, one would need to compare the unit costs for specific components (e.g., per line, per device, per service hour) against prevailing market rates for comparable government or commercial contracts. The competitive nature of the award (3 bidders) suggests that the pricing is likely within a reasonable range, but a deeper dive into the specific services and their associated costs is necessary for a definitive benchmark.

What are the primary risks associated with a long-term contract like this (over 13 years)?

Long-term contracts, such as this one spanning over 13 years, present several potential risks. Technological obsolescence is a significant concern; telecommunications technology evolves rapidly, and services procured today might be outdated before the contract expires. Vendor lock-in is another risk, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors even if better options emerge. Furthermore, the contractor might face financial instability or changes in business strategy over such an extended period. Managing these risks requires proactive contract administration, regular performance reviews, and potentially incorporating clauses for technology refresh or service adjustments.

What is the track record of Harris Corporation in delivering telecommunications reseller services to the federal government?

Harris Corporation (now L3Harris Technologies) has a substantial track record of providing a wide array of technology and communication solutions to the U.S. federal government, including defense, intelligence, and civilian agencies. Their experience encompasses complex systems integration, network infrastructure, and various communication services. For telecommunications reseller services specifically, their history would likely involve managing large-scale procurements, ensuring service delivery, and maintaining compliance with government standards. A detailed review of their past performance on similar contracts, including customer satisfaction ratings and any past performance issues or commendations, would provide a clearer picture of their capabilities and reliability in this domain.

How does this contract contribute to the Federal Aviation Administration's overall mission and operational effectiveness?

This contract is crucial for the Federal Aviation Administration's (FAA) mission of ensuring the safety and efficiency of civil aviation. Reliable and robust telecommunications are the backbone of air traffic control systems, communication between pilots and controllers, data transmission for flight planning, and various administrative functions. By securing these services through a long-term contract with a significant value, the FAA ensures continuity and modernization of its communication infrastructure, which is vital for managing the complexities of the National Airspace System. The effectiveness of this contract directly impacts the FAA's ability to maintain safety standards and adapt to evolving air traffic demands.

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: $5,100,000,000

Exercised Options: $646,515,613

Current Obligation: $638,022,946

Actual Outlays: $225,841,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline