DOT's FAA awards $95M to Harris Corporation for telecommunications, spanning 15 years

Contract Overview

Contract Amount: $95,130,795 ($95.1M)

Contractor: Harris Corporation

Awarding Agency: Department of Transportation

Start Date: 2008-06-13

End Date: 2023-09-30

Contract Duration: 5,587 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUMMARIZED LEGACY LINES FROM ACQUIRE

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $95.1 million to HARRIS CORPORATION for work described as: SUMMARIZED LEGACY LINES FROM ACQUIRE Key points: 1. Contract value of $95.1M over 15 years suggests a long-term need for telecommunications services. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The duration of the contract (5587 days) is substantial, requiring careful performance monitoring. 4. The fixed-price contract type aims to control costs for the government. 5. The contractor, Harris Corporation, has a significant presence in the aerospace and defense sector. 6. The contract's focus on telecommunications resellers points to a specific niche within the FAA's operational needs.

Value Assessment

Rating: good

The total contract value of $95.1 million over approximately 15 years averages to about $6.34 million per year. Without specific benchmarks for telecommunications reseller services within the FAA, it's difficult to definitively assess value for money. However, the long duration and fixed-price nature suggest an attempt to secure predictable costs for essential services. Further analysis would require comparing this to similar contracts for similar services and assessing the scope of work delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this telecommunications reseller requirement. While not an extremely high number of bidders, open competition generally provides a better opportunity for price discovery and ensures the government receives offers from a range of qualified vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government is not locked into a single provider, potentially leading to better value.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the provision of essential telecommunications reseller services. These services likely support air traffic control, communication systems, and other critical operational functions within the FAA. The geographic impact is primarily national, supporting FAA operations across the United States. The contract supports jobs within the telecommunications and IT sectors, particularly at Harris Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (15 years) increases the risk of technological obsolescence or changing service needs.
Reliance on a single contractor for a significant period could lead to complacency or reduced innovation.
The specific nature of 'telecommunications resellers' might indicate a less direct service provision, requiring careful oversight of downstream activities.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Fixed-price contract type helps to control costs and provides budget certainty for the government.
The contractor, Harris Corporation, is a well-established entity in the aerospace and defense industry, implying experience and stability.

Sector Analysis

The telecommunications reseller market is a segment of the broader IT and telecommunications industry, providing communication services and equipment through third-party agreements. This contract fits within the government's need for robust and reliable communication infrastructure to support its vast operational network. Comparable spending benchmarks are difficult to ascertain without detailed service scope, but government spending on telecommunications services is substantial across various agencies.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the nature of the contractor (Harris Corporation) and the service type, it's possible that larger telecommunications providers were the primary focus. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA Telecommunications Services
DoT IT Infrastructure Contracts
Government Wide Acquisition Contracts (GWACs) for Telecommunications
Defense Information Systems Agency (DISA) Telecommunications Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in over a 15-year period.
Need for robust oversight to ensure service quality and cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $95.1 million to HARRIS CORPORATION. SUMMARIZED LEGACY LINES FROM ACQUIRE

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 $95.1 million.

What is the period of performance?

Start: 2008-06-13. End: 2023-09-30.

What specific telecommunications services are being provided under this contract?

The data indicates the contract is for 'Telecommunications Resellers' (NAICS code 517310). This generally means the contractor, Harris Corporation, is providing telecommunications services and equipment that they procure from other carriers or service providers. This could encompass a wide range of services, including voice, data, internet, and potentially specialized communication solutions for the FAA's operational needs. The exact scope would be detailed in the contract's statement of work, which is not provided here. Understanding the specific services is crucial for assessing performance and value.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The contract's total value of $95.1 million over approximately 15 years equates to an average annual spend of roughly $6.34 million. Benchmarking this requires detailed knowledge of the specific telecommunications services procured, the volume, and the service level agreements. Without this granular detail, a direct comparison to industry rates is challenging. However, for large-scale government telecommunications needs, this annual figure might be within a reasonable range, especially considering the specialized requirements of an agency like the FAA. A more precise analysis would involve comparing unit costs for specific services (e.g., per circuit, per user) against market rates.

What is Harris Corporation's track record with the FAA and other government agencies for similar services?

Harris Corporation (now L3Harris Technologies) has a long history of providing technology, communication, and defense solutions to government agencies, including the FAA and the Department of Defense. Their track record generally includes large, complex system integration and communication projects. For the FAA, they have likely been involved in various aspects of air traffic management systems and communication infrastructure. While this specific contract is for telecommunications reselling, their broader experience in government contracting suggests a capacity to manage such requirements. A deeper dive into past performance reviews and any past disputes or awards related to similar FAA contracts would provide a more complete picture.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a telecommunications reseller contract typically focus on service availability, network uptime, latency, data throughput, and response times for issue resolution. For the FAA, reliability and performance are paramount, especially for air traffic control communications. Specific KPIs would be defined in the contract's Service Level Agreement (SLA). These might include metrics like 99.99% network uptime, maximum acceptable latency for voice and data, and defined timeframes for restoring service after an outage. The FAA's contracting officer and technical representatives would monitor these KPIs to ensure Harris Corporation meets its obligations.

Has the FAA experienced any significant issues or cost overruns with telecommunications services in the past?

Historical data on FAA telecommunications services spending and performance is not directly available in this summary. However, large government agencies often face challenges with managing complex telecommunications contracts due to evolving technology, changing requirements, and the sheer scale of operations. Issues can arise from vendor performance, contract scope creep, or the need for upgrades. Without specific reports or audits related to FAA telecommunications, it's difficult to state definitively whether significant issues or cost overruns have occurred. General government contracting principles suggest that long-term contracts require diligent oversight to prevent such problems.

What is the potential impact of this contract on future FAA telecommunications infrastructure modernization efforts?

This contract, spanning 15 years, represents a significant portion of the FAA's telecommunications expenditure during its term. While it provides stable service delivery, its long duration could potentially influence modernization efforts. If the contract is structured with flexibility for technology refreshes or upgrades, it could support modernization. Conversely, a rigid contract might delay the adoption of newer, more efficient technologies. The FAA's strategic plans for NextGen and other modernization initiatives would dictate how this contract aligns with or potentially constrains future infrastructure development.

Industry Classification

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

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

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: $1,000,000,000

Exercised Options: $98,067,159

Current Obligation: $95,130,795

Actual Outlays: $20,209,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline