Department of Transportation awards $1.24B for telecommunications services over 13 years, with Harris Corporation as prime

Contract Overview

Contract Amount: $1,240,364,576 ($1.2B)

Contractor: Harris Corporation

Awarding Agency: Department of Transportation

Start Date: 2011-09-28

End Date: 2024-09-30

Contract Duration: 4,751 days

Daily Burn Rate: $261.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES. THIS DELIVERY ORDER SUCCEEDS DELIVERY ORDER 0004 AND DELIVERY ORDER 0015. DELIVERY ORDER 0004, DELIVERY ORDER 0015, AND THIS DELIVERY ORDER COMPRISE THE AGGREGATE OF FTI TELECOMMUNICATION SERVICE ORDERS. TAS::69 1301::TAS

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $1.24 billion to HARRIS CORPORATION for work described as: THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES. THIS DELIVERY ORDER SUCCEEDS DELIVERY ORDER 0004 AND DELIVERY ORDER 0015. DELIVERY ORDER 0004, DELIVERY ORDER 0015, AND THIS DELIVERY ORDER COMPRISE THE AGGREGATE OF FTI TELECOMMUNIC… Key points: 1. This award represents a significant, long-term investment in telecommunications infrastructure. 2. The contract spans over a decade, indicating a need for sustained service delivery. 3. The use of Fixed Price Incentive (FPI) pricing suggests a focus on performance and cost control. 4. The Federal Aviation Administration (FAA) is the primary beneficiary of these services. 5. The contract is structured as a delivery order, building upon previous awards. 6. The prime contractor, Harris Corporation, has a substantial role in fulfilling these telecommunications needs.

Value Assessment

Rating: fair

The total award value of $1.24 billion over 13 years is substantial. Without specific details on the services rendered or comparable contracts for similar telecommunications infrastructure, a precise value-for-money assessment is challenging. The Fixed Price Incentive (FPI) contract type suggests an attempt to align contractor incentives with government cost and performance objectives, which can be a positive indicator if managed effectively. However, the long duration and cumulative nature of these delivery orders warrant scrutiny to ensure ongoing cost-effectiveness and prevent potential price creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced telecommunications capabilities, crucial for air traffic control and operational efficiency. These services likely support critical communication networks essential for national airspace management. The geographic impact is primarily within Florida, where the contract has a presence. The contract supports jobs within the telecommunications sector, particularly through the prime contractor, Harris Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (13 years) increases the risk of technological obsolescence or changing requirements.
Reliance on a single prime contractor for such a large sum over an extended period could limit future flexibility.
The cumulative nature of these delivery orders requires careful monitoring to ensure continued value and prevent scope creep.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing was sought.
The use of Fixed Price Incentive (FPI) contract type aims to incentivize contractor performance and cost control.
The contract builds upon previous delivery orders, indicating a potentially stable and proven service.

Sector Analysis

This contract falls within the Telecommunications Resellers (NAICS 517310) sector, which involves providing telecommunications services. The significant value of $1.24 billion over 13 years suggests a large-scale, critical infrastructure project. Comparable spending benchmarks in this sector would typically involve large government contracts for network infrastructure, managed services, or specialized communication systems. The Federal Aviation Administration's reliance on such services highlights the importance of robust and reliable telecommunications for national security and transportation.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, Harris Corporation, is a large entity. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Federal Aviation Administration. Accountability measures are inherent in the Fixed Price Incentive (FPI) contract type, which links contractor payment to performance and cost targets. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight activities are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Telecommunications Services
Department of Transportation IT Infrastructure
Government Wide Telecommunications Contracts
Harris Corporation Federal Contracts

Risk Flags

Long-term contract duration may lead to technological obsolescence.
Potential for cost overruns if incentive targets are not met effectively.
Limited visibility into specific service details and performance metrics.
Reliance on a single prime contractor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.24 billion to HARRIS CORPORATION. THE PURPOSE OF THIS DELIVERY ORDER AWARD IS TO ADD FUNDING FOR FTI TELECOMMUNICATIONS SERVICES. THIS DELIVERY ORDER SUCCEEDS DELIVERY ORDER 0004 AND DELIVERY ORDER 0015. DELIVERY ORDER 0004, DELIVERY ORDER 0015, AND THIS DELIVERY ORDER COMPRISE THE AGGREGATE OF FTI TELECOMMUNICATION SERVICE ORDERS. TAS::69 1301::TAS

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 $1.24 billion.

What is the period of performance?

Start: 2011-09-28. End: 2024-09-30.

What specific telecommunications services are being provided under this contract?

The provided data indicates the contract is for 'FTI Telecommunications Services' and that this delivery order adds funding for these services. It succeeds previous delivery orders (0004 and 0015) which, along with this order, comprise the aggregate of FTI telecommunication service orders. However, the specific nature of these 'FTI Telecommunications Services' is not detailed. These could range from network infrastructure, voice and data services, managed network operations, or specialized communication systems critical for the FAA's operations. Further details would be required from the contract's statement of work to understand the precise services delivered.

How does the $1.24 billion total award value compare to similar FAA telecommunications contracts?

Assessing the $1.24 billion award value requires context regarding the scope and duration of similar FAA telecommunications contracts. This contract spans 13 years (September 2011 to September 2024), making it a substantial long-term investment. Without access to a comprehensive database of historical FAA telecommunications procurements, a direct comparison is difficult. However, given the critical nature of FAA operations, large-scale investments in communication infrastructure are not uncommon. The value suggests a comprehensive suite of services or significant infrastructure build-out/maintenance. Benchmarking against contracts for air traffic control systems, network modernization, or enterprise-wide communication solutions would be necessary for a more precise comparison.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with the Fixed Price Incentive (FPI) contract type?

Under a Fixed Price Incentive (FPI) contract, the final price is adjusted based on the contractor's performance against target cost and target profit objectives. Key performance indicators (KPIs) would be defined in the contract's statement of work and could include metrics like network uptime, service availability, response times for outages, data transmission speeds, and security compliance. Risk mitigation strategies for the government involve establishing realistic target costs and profits, clearly defining performance criteria, and implementing robust monitoring and evaluation processes. The incentive aspect encourages the contractor to control costs and meet performance targets to maximize their profit, while the government benefits from a ceiling price and potential cost savings if the contractor performs exceptionally well.

What is the historical spending trend for FTI Telecommunications Services under the FAA?

This delivery order, valued at $1.24 billion, represents the aggregate of FTI telecommunication service orders, succeeding previous orders 0004 and 0015. To understand the historical spending trend, one would need to examine the values and durations of these preceding delivery orders. If order 0004 and 0015 were also substantial, it would indicate a consistent and significant investment in these services over time. Conversely, if this order represents a significant increase, it might signal an expansion of services or a change in pricing. Analyzing the funding history of these specific delivery orders would reveal whether spending has been steady, increasing, or decreasing.

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

Harris Corporation is a well-established defense contractor with a significant presence in providing technology and communication solutions to the federal government. Their track record with the FAA likely includes various communication, surveillance, and IT infrastructure projects. Given their size and experience, they are generally considered capable of handling large, complex contracts. However, a detailed assessment would require reviewing specific past performance evaluations, any past disputes or contract terminations, and the successful completion of similar-sized telecommunications projects for the FAA or other federal agencies. The fact that they are the prime contractor on this substantial, long-term award suggests a positive past performance history.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $3,499,848,195

Exercised Options: $1,240,369,919

Current Obligation: $1,240,364,576

Actual Outlays: $241,877,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline