DoD awards $37.8M for C-130 depot maintenance, with L3Harris Technologies securing the contract

Contract Overview

Contract Amount: $37,876,697 ($37.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-12-20

End Date: 2025-03-26

Contract Duration: 462 days

Daily Burn Rate: $82.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130 UDLM/PDM DEPOT MAINTENANCE

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: C-130 UDLM/PDM DEPOT MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for depot maintenance, a critical service for aircraft longevity. 3. L3Harris Technologies, the contractor, has a significant presence in aerospace and defense. 4. The contract duration is 462 days, indicating a medium-term service requirement. 5. The award type is a delivery order, suggesting it's part of a larger contract vehicle. 6. The fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $37.8 million for C-130 depot maintenance appears reasonable given the scope of work. Benchmarking against similar depot maintenance contracts for large military aircraft suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the Department of Defense, although it places the cost risk on the contractor. Without specific details on the scope of maintenance required, a precise value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in the government receiving the best possible price for the required services, maximizing the value of federal funds.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating C-130 aircraft, ensuring their operational readiness. The contract delivers essential depot-level maintenance and repair services for C-130 aircraft. Services are likely to be performed at facilities in Texas, where the contractor has a significant presence. The contract supports skilled jobs in aircraft maintenance and repair within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical depot maintenance could pose a risk if performance issues emerge.
The long-term sustainment costs of the C-130 fleet are not fully detailed in this award.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract type provides cost predictability for the government.
Contractor, L3Harris Technologies, is an established player in the aerospace and defense industry with relevant experience.
Delivery order structure suggests it aligns with existing contract vehicles, potentially streamlining procurement.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex manufacturing and maintenance services. Depot maintenance for aircraft like the C-130 is a critical component of military readiness, involving specialized skills and facilities. The market for such services is competitive, with several large defense contractors capable of performing this work. Spending in this area is substantial, reflecting the ongoing need to maintain aging but vital military fleets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, L3Harris Technologies, is a large business. While there is no direct set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent of small business participation will depend on L3Harris's subcontracting plan and the specific requirements of the delivery order.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, which stipulate deliverables and performance standards. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and detailed cost breakdowns are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130 Hercules Aircraft Sustainment
Air Force Depot Maintenance Programs
Aircraft Component Repair and Overhaul
Defense Logistics Agency (DLA) Aviation Support

Risk Flags

Potential for performance delays impacting aircraft readiness.
Risk of unforeseen maintenance issues exceeding fixed-price scope.
Contractor's ability to maintain required staffing levels and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. C-130 UDLM/PDM DEPOT MAINTENANCE

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 $37.9 million.

What is the period of performance?

Start: 2023-12-20. End: 2025-03-26.

What is the track record of L3Harris Technologies in performing C-130 depot maintenance?

L3Harris Technologies, through its various divisions and acquisitions, has a long history of supporting military aircraft, including the C-130 platform. They are known for providing a range of services from component repair to full depot-level maintenance. Their experience often encompasses avionics, structural repairs, and systems integration. While specific performance data for this exact delivery order is not yet available, the company's established presence in the defense sector suggests a capacity to handle complex maintenance tasks. Past performance reviews and contract histories with the Department of Defense would provide a more granular understanding of their reliability and quality in similar maintenance operations.

How does the awarded amount compare to historical spending on C-130 depot maintenance?

The awarded amount of approximately $37.8 million for this specific delivery order for C-130 depot maintenance needs to be viewed in the context of the overall C-130 sustainment program. Annual spending on C-130 depot maintenance can fluctuate significantly based on the number of aircraft requiring service, the type of maintenance (e.g., scheduled inspections vs. major overhauls), and the specific components or systems needing repair. Historical data indicates that the total annual budget for C-130 sustainment, including depot-level activities, often runs into hundreds of millions of dollars across the Air Force. This $37.8 million award represents a portion of that larger sustainment effort for a defined period and scope, and appears consistent with the scale of individual depot maintenance task orders.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this firm fixed-price contract revolve around potential performance deficiencies and cost control. If L3Harris Technologies fails to meet the required maintenance standards or delivery schedules, it could impact C-130 operational readiness, leading to mission delays or cancellations. While the fixed-price nature caps the direct cost, any significant delays or quality issues could necessitate additional government oversight, expedited repairs elsewhere, or contract disputes, indirectly increasing overall program costs and complexity. Furthermore, over-reliance on a single contractor for critical maintenance functions can create vulnerabilities if the contractor experiences financial instability or operational disruptions.

How effective is the firm fixed-price contract type in ensuring value for money for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for services where the scope of work is well-defined and unlikely to change significantly. For depot maintenance, where tasks like inspections, repairs, and overhauls are relatively predictable, FFP provides cost certainty to the government. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, if unforeseen issues arise during maintenance that require significant deviations from the original scope, the FFP structure can lead to contract modifications or disputes, potentially eroding some of the initial cost advantages. In such cases, a cost-plus contract might offer more flexibility but less cost certainty.

What is the typical geographic distribution of C-130 depot maintenance contracts?

C-130 depot maintenance contracts are typically awarded to large aerospace and defense companies that possess the specialized facilities, equipment, and skilled workforce required for such complex tasks. These facilities are often located strategically to support major Air Force bases or logistical hubs. While this specific contract is associated with Texas (st: TX, sn: TEXAS), C-130 depot maintenance work is distributed across various locations in the United States where major defense contractors operate. Some contracts may also involve international support, depending on the operational needs and basing of C-130 fleets. The geographic distribution aims to balance workload, leverage existing infrastructure, and ensure timely support for aircraft readiness.

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: $37,876,697

Exercised Options: $37,876,697

Current Obligation: $37,876,697

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,566,693

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