DoD awards $38.9M C-130 aircraft parts contract to L3Harris Technologies for 847 days

Contract Overview

Contract Amount: $38,929,377 ($38.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-11-30

End Date: 2025-03-26

Contract Duration: 847 days

Daily Burn Rate: $46.0K/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 $38.9 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 parts, indicating ongoing sustainment needs for a critical military platform. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The firm-fixed-price contract type shifts cost risk to the contractor, L3Harris Technologies. 4. The contract duration of 847 days (approx. 2.3 years) suggests a medium-term supply requirement. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for managing ongoing supply needs. 6. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a specialized sector. 7. The contract's value of $38.9M is moderate within the context of large defense procurements.

Value Assessment

Rating: good

The contract value of $38.9M for C-130 aircraft parts over approximately 2.3 years appears reasonable given the specialized nature of military aircraft components. Benchmarking against similar sustainment contracts for legacy aircraft would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when the scope is well-defined, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple companies likely vied for the award. The number of bidders is not specified, but the competition type generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of suppliers to offer their best pricing, potentially reducing the overall cost to the government for these critical aircraft parts.

Public Impact

The primary beneficiaries are the U.S. Air Force and other branches operating C-130 aircraft, ensuring operational readiness. The contract delivers essential parts for the C-130 Hercules, a widely used military transport aircraft. The geographic impact is national, supporting military operations across various theaters. Workforce implications include skilled labor in aircraft manufacturing and supply chain management at L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if L3Harris faces production issues.
Reliance on a single contractor for a significant duration could limit flexibility if needs change rapidly.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
L3Harris Technologies is an established defense contractor with experience in aerospace manufacturing.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract falls within the aircraft manufacturing sub-sector, specifically supporting legacy platforms like the C-130. Spending in this area is crucial for maintaining the operational readiness of the U.S. military's aging fleet, with comparable contracts often involving multi-year sustainment and parts provisioning.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While L3Harris Technologies is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors within L3Harris's supply chain. The extent of small business subcontracting will depend on L3Harris's internal policies and the specific requirements of the contract.

Oversight & Accountability

The Department of Defense utilizes various oversight mechanisms, including contract administration by the Defense Contract Management Agency (DCMA) and potential reviews by the Inspector General. The firm-fixed-price nature of the contract provides a degree of financial oversight by capping costs. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

C-130 Hercules Sustainment Programs
Aircraft Parts and Components Procurement
Defense Logistics Agency (DLA) Contracts
Aerospace Manufacturing Contracts

Risk Flags

Potential for supply chain delays
Contract performance risk
Specification compliance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.9 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $38.9 million.

What is the period of performance?

Start: 2022-11-30. End: 2025-03-26.

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

L3Harris Technologies, through its various divisions and acquisitions, has a long history of supporting military aircraft platforms, including the C-130. They are known for providing a range of services and components for avionics, electronic warfare systems, and structural upgrades. Their involvement in C-130 sustainment typically includes providing spare parts, maintenance, repair, and overhaul (MRO) services, and sometimes modifications or upgrades. Analyzing their past performance on similar contracts, including on-time delivery, quality of parts, and adherence to budget, would be crucial for assessing their reliability in fulfilling this current $38.9M contract.

How does the $38.9M contract value compare to historical spending on C-130 parts?

The $38.9 million contract value represents a specific delivery order for C-130 parts over an 847-day period. To benchmark this value, one would need to examine historical spending patterns for similar C-130 parts procurements, particularly those awarded under full and open competition and on a firm-fixed-price basis. The Department of Defense procures a vast array of C-130 components, ranging from minor hardware to major structural elements. A comparison would involve looking at the average cost per part, the total annual spend on C-130 sustainment, and the typical contract sizes for similar quantities and types of parts. Without access to detailed historical data and the specific nature of the parts in this order, a precise comparison is difficult, but $38.9M is a moderate sum for a multi-year supply of specialized aircraft components.

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

The primary risks associated with this contract include potential supply chain disruptions, where L3Harris Technologies might face challenges in sourcing raw materials or manufacturing components, leading to delivery delays. Another risk is the potential for cost growth if the firm-fixed-price contract contains unforeseen escalation clauses or if the scope requires modification, although FFP aims to mitigate this. Technical risks could arise if the parts supplied do not meet stringent military specifications, requiring rework or replacement. Furthermore, over-reliance on a single supplier for critical components, even under competition, can pose a long-term strategic risk if that supplier's capabilities diminish or if market conditions change unfavorably.

How effective is the full and open competition strategy for procuring aircraft parts like these?

The full and open competition strategy is generally considered highly effective for procuring aircraft parts, especially for widely used platforms like the C-130 where multiple manufacturers and suppliers may exist. This approach maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. It allows the government to solicit proposals from all responsible sources, ensuring they receive the best value in terms of price, quality, and delivery timelines. The effectiveness is contingent on clear and comprehensive requirements being defined in the solicitation, allowing bidders to accurately price their offers and ensuring the selected contractor can meet all performance expectations.

What is the typical duration for contracts of this nature (C-130 parts supply)?

Contracts for the supply of aircraft parts, particularly for legacy platforms like the C-130, can vary significantly in duration. Delivery orders under IDIQ contracts, like this one, often have performance periods ranging from a few months to several years, depending on the anticipated demand and the nature of the parts. An 847-day duration (approximately 2.3 years) is a common timeframe for ensuring a steady supply of components over a medium-term period, balancing the need for continuous availability with the desire to re-evaluate contracting strategies periodically. Longer durations might be seen for major overhaul contracts or long-lead-time components, while shorter durations might apply to immediate, high-demand needs.

What are the implications of the firm-fixed-price (FFP) contract type for this procurement?

The firm-fixed-price (FFP) contract type is highly advantageous for the government in this scenario as it transfers the majority of the cost risk to the contractor, L3Harris Technologies. Under an FFP agreement, the price is set and is not subject to adjustment based on the contractor's cost experience. This provides the Department of Defense with significant cost certainty and predictability. It incentivizes the contractor to manage its costs efficiently and to perform the work within the agreed-upon budget. The primary implication for the government is protection against cost overruns, assuming the contract scope is well-defined and the initial price is competitive.

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

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: $42,692,321

Exercised Options: $38,929,377

Current Obligation: $38,929,377

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $1,976,829

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