Air Force awards $49.9M engineering redesign contract to L3Harris Technologies, Inc
Contract Overview
Contract Amount: $49,950,976 ($50.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2025-02-28
Contract Duration: 2,527 days
Daily Burn Rate: $19.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING SERVICE - REDESIGN FOR VDATS TPS . GFP USED ON A NON INTERFERENCE BASIS
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $50.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING SERVICE - REDESIGN FOR VDATS TPS . GFP USED ON A NON INTERFERENCE BASIS Key points: 1. Significant contract value for specialized engineering services. 2. L3Harris Technologies, Inc. is a major defense contractor. 3. Potential risk associated with a sole-source award. 4. Engineering services sector is critical for defense modernization.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The total value is substantial, and without competitive bidding, it's difficult to assess if the price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium for these engineering services.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. The VDATS TPS redesign is crucial for Air Force operations. L3Harris Technologies' role highlights the concentration of defense contracts among large firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Critical engineering service for defense
- Experienced contractor
Sector Analysis
This contract falls within the engineering services sector, which is vital for the Department of Defense's infrastructure and technology development. Benchmarks for similar sole-source engineering contracts can vary widely, but the value here is significant.
Small Business Impact
The contract was awarded to L3Harris Technologies, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the cost-plus-fixed-fee structure is managed effectively and that the final price reflects fair value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of transparency regarding the justification for sole-sourcing.
- Significant contract value without competitive benchmarking.
Tags
engineering-services, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.0 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING SERVICE - REDESIGN FOR VDATS TPS . GFP USED ON A NON INTERFERENCE BASIS
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
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 $50.0 million.
What is the period of performance?
Start: 2018-03-30. End: 2025-02-28.
What specific justification was provided for the sole-source award, and how does it align with federal acquisition regulations for non-competitive procurements?
The data does not provide the specific justification for the sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines exceptions for full and open competition, such as when only one responsible source can satisfy agency requirements. A thorough review of the justification is necessary to ensure it is valid and that taxpayer funds are being used appropriately.
How will the government ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract awarded without competition?
Effective oversight is crucial. The Air Force must implement robust monitoring of L3Harris's costs, performance, and progress. This includes regular audits, detailed reviews of incurred costs, and strict adherence to the fixed fee component to prevent scope creep and ensure the contractor remains incentivized to manage expenses efficiently.
What is the expected impact of this VDATS TPS redesign on the Air Force's operational capabilities and long-term readiness?
The VDATS TPS (presumably a critical system for the Air Force) redesign is expected to enhance or maintain operational capabilities by addressing obsolescence, improving performance, or integrating new functionalities. The successful completion of this redesign is vital for the Air Force's readiness and its ability to execute its mission effectively in the future.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852218R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,133,573
Exercised Options: $49,950,976
Current Obligation: $49,950,976
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,021,203
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-30
Current End Date: 2025-02-28
Potential End Date: 2025-08-28 00:00:00
Last Modified: 2025-03-26
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