DoD's $16.4M C-130 Aircraft Component Contract Awarded to L3Harris Technologies

Contract Overview

Contract Amount: $16,380,438 ($16.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-11-30

End Date: 2023-01-14

Contract Duration: 775 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130 UDLM/PDM OVERFLOW CONTRACT - PDM

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: C-130 UDLM/PDM OVERFLOW CONTRACT - PDM Key points: 1. Contract awarded for C-130 aircraft component manufacturing, supporting critical Air Force operations. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide budget certainty. 4. Contract duration of 775 days suggests a medium-term supply requirement. 5. Awarded to L3Harris Technologies, a significant defense contractor. 6. Texas-based awardee may have implications for regional economic impact.

Value Assessment

Rating: good

The contract value of $16.4 million for C-130 aircraft components appears reasonable given the nature of defense manufacturing. Without specific unit cost data or detailed scope of work, a direct comparison to similar contracts is challenging. However, the firm fixed-price structure suggests an expectation of cost control by the Air Force. The award to a known defense contractor like L3Harris indicates a level of established capability and potentially competitive pricing within the specialized aerospace manufacturing sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation implies a robust process was intended. The level of competition directly influences price discovery and the government's ability to secure favorable terms.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging value for money. It reduces the risk of overpayment and promotes a fair market for defense contractors.

Public Impact

The primary beneficiaries are the U.S. Air Force, ensuring the continued operational readiness of its C-130 fleet. Services delivered include the manufacturing of critical components for C-130 aircraft, essential for logistics and troop transport. The geographic impact is primarily centered in Texas, where the contractor is located, potentially creating or sustaining jobs in the region. Workforce implications include skilled manufacturing and engineering roles required for aerospace component production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price terms.
Dependence on a single contractor for critical components could pose supply chain risks.
Ensuring timely delivery of high-quality components is crucial for aircraft availability.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established defense contractor suggests technical capability and experience.
Full and open competition aims to maximize value and minimize price.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, a critical industry for national security. The market for aircraft components is specialized, with a limited number of highly capable manufacturers. Spending in this area is driven by the need to maintain and modernize aging fleets, as well as support new aircraft programs. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft components or MRO services for the C-130 platform.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements specified for small businesses within this award. The primary contractor, L3Harris Technologies, is a large defense entity, and its internal subcontracting practices would determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components. Transparency is generally maintained through contract databases, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130 Hercules Sustainment Programs
Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Logistics Agency (DLA) Aviation Contracts
Air Force Materiel Command (AFMC) Procurement

Risk Flags

Potential supply chain vulnerability
Risk of delivery delays impacting operational readiness
Quality control assurance needed for critical aircraft components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. C-130 UDLM/PDM OVERFLOW CONTRACT - PDM

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2020-11-30. End: 2023-01-14.

What is L3Harris Technologies' track record with C-130 component manufacturing contracts?

L3Harris Technologies, and its predecessor entities, have a long history of supporting the C-130 platform, including manufacturing and sustainment services. Their experience spans various components and systems for different C-130 variants. Analyzing historical contract data for L3Harris related to C-130 components would reveal their performance, delivery timeliness, and any past issues. Given their established presence in the defense aerospace sector, they are generally considered a reliable supplier for such critical systems. However, a detailed review of past performance evaluations and any contract disputes would provide a more comprehensive understanding of their specific track record on similar procurements.

How does the $16.4 million value compare to similar C-130 component contracts?

Directly comparing the $16.4 million value requires access to detailed specifications of the components being manufactured and the contract's scope of work. Contracts for C-130 components can vary significantly in price based on complexity, materials, quantity, and whether they are for new production or replacement parts. For instance, a contract for simple structural elements would differ vastly from one for complex avionics or engine parts. Benchmarking against other recent Air Force or international C-130 component awards, adjusted for inflation and scope, would be necessary. Without such granular data, it's difficult to definitively state if this value is high or low, but it falls within a plausible range for a significant batch of specialized aircraft parts.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract include potential delays in component delivery, which could impact C-130 operational readiness. There's also a risk of quality defects, requiring rework or replacement, leading to increased costs and schedule slippage. Given the specialized nature of aerospace manufacturing, supply chain disruptions affecting L3Harris could also pose a risk. Furthermore, while the contract is firm fixed-price, unforeseen technical challenges or material cost escalations beyond the contractor's control could lead to requests for contract modifications or disputes, although the FFP structure aims to mitigate this. Ensuring the long-term availability and supportability of these components is also a consideration.

How effective is the firm fixed-price (FFP) contract type in managing costs for this specific procurement?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of cost overruns are relatively low or can be reasonably estimated by the contractor. For C-130 component manufacturing, where specifications are likely detailed, FFP provides significant cost certainty to the government. It places the burden of cost control and managing unforeseen expenses on the contractor, L3Harris Technologies. This structure incentivizes the contractor to perform efficiently to maximize profit. However, if unexpected technical difficulties arise that were not foreseeable, the contractor might seek equitable adjustments, potentially negating some of the cost certainty, though this is less common under FFP than other contract types.

What is the historical spending trend for C-130 component manufacturing by the Air Force?

Historical spending on C-130 component manufacturing by the Air Force has been substantial and ongoing, reflecting the platform's long service life and critical role in logistics and global reach. Spending trends are influenced by factors such as the age of the C-130 fleet, the introduction of new variants (like the C-130J), modernization programs, and the overall defense budget. Over the years, the Air Force has awarded numerous contracts for C-130 parts, encompassing everything from airframe structures and engines to avionics and landing gear. Spending can fluctuate based on depot maintenance schedules, fleet readiness goals, and the strategic priorities of the Air Force. Analyzing aggregated spending data over the past decade would show a consistent, albeit variable, investment in sustaining this vital aircraft fleet.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA850420R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,380,438

Exercised Options: $16,380,438

Current Obligation: $16,380,438

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $2,178,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA850421D0001

IDV Type: IDC

Timeline