DoD's $46.6M Engineering Services Contract Awarded to L3Harris Technologies Shows Moderate Value
Contract Overview
Contract Amount: $46,566,646 ($46.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-17
End Date: 2020-12-31
Contract Duration: 4,488 days
Daily Burn Rate: $10.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $46.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING SERVICES Key points: 1. Contract value of $46.6 million over its period of performance. 2. Awarded under full and open competition after exclusion of sources. 3. Performance period spanned from September 2008 to December 2020. 4. Contract type was Cost No Fee, indicating payment based on allowable costs. 5. L3Harris Technologies, Inc. is the sole awardee. 6. The contract falls under the NAICS code 334511 for instrument manufacturing.
Value Assessment
Rating: fair
The contract's total value of $46.6 million over approximately 12 years suggests a moderate annual spend. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the Cost No Fee structure implies that the government reimburses allowable costs, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Benchmarking against similar engineering services contracts would require more granular data on the specific services rendered and their complexity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to national security or proprietary technology. The exact number of bidders is not specified, but the 'full and open' designation suggests multiple potential offerors were considered.
Taxpayer Impact: This competition type aims to ensure the government receives the best value by considering a wide range of qualified contractors, potentially leading to more competitive pricing for taxpayers.
Public Impact
This contract likely supported the Department of the Air Force's engineering and technical requirements. Benefits L3Harris Technologies, Inc. through revenue generation and project execution. The services provided are crucial for the development, maintenance, or enhancement of defense systems. Geographic impact is primarily centered around L3Harris's operational locations, likely in New York. Workforce implications include employment for engineers, technicians, and support staff at the contractor's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type may offer less incentive for contractor cost efficiency.
- Exclusion of sources in competition could limit the pool of potential bidders.
- Long performance period (over 12 years) can make it difficult to track evolving market prices.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition, suggesting a broad initial consideration of offerors.
- Contractor L3Harris Technologies, Inc. is a significant defense contractor with established capabilities.
- The contract duration indicates a sustained need for the services provided.
Sector Analysis
This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on instruments for search, detection, navigation, guidance, and related systems. The market for such specialized engineering services is characterized by high barriers to entry due to technical expertise, security clearances, and R&D investment. Spending in this area is driven by defense modernization efforts and the need for advanced technological capabilities. Comparable spending benchmarks would typically be found within the Department of Defense's procurement of similar system development and integration services.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus is on prime contractor performance rather than small business ecosystem development.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the Cost No Fee structure, requiring the contractor to justify all costs incurred. Transparency is generally limited for specific contract details in public disclosures, but contract award data is available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense System Engineering
- Aerospace Instrument Manufacturing
- Navigation and Guidance Systems
- Search and Detection Technology
- Department of Defense Research and Development
Risk Flags
- Cost Control Risk (Cost No Fee)
- Limited Competition Transparency
- Long Performance Period Price Volatility
Tags
defense, department-of-defense, air-force, engineering-services, l3harris-technologies, cost-no-fee, full-and-open-competition, instrument-manufacturing, new-york, definitive-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.6 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING SERVICES
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 $46.6 million.
What is the period of performance?
Start: 2008-09-17. End: 2020-12-31.
What specific engineering services were provided under this contract?
The provided data indicates the contract falls under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). This suggests the engineering services likely involved the design, development, testing, integration, and sustainment of complex systems and instruments related to these functions. Examples could include radar systems, navigation equipment, guidance control systems, or sensor technologies. Without access to the contract's statement of work (SOW), the precise nature and scope of these services remain unspecified, making it difficult to detail their exact application or impact.
How does the $46.6 million contract value compare to similar engineering services contracts within the Department of Defense?
A direct comparison of the $46.6 million total contract value is challenging without knowing the specific services rendered and their complexity. However, for a contract spanning over 12 years (September 2008 to December 2020), the average annual spend was approximately $3.88 million ($46.6M / 12 years). This figure represents a moderate level of investment for specialized engineering services within the Department of Defense, which often procures multi-billion dollar programs. Contracts for large-scale system development or sustainment can easily reach hundreds of millions or billions of dollars. This contract appears to be for a more focused or niche set of engineering support.
What are the potential risks associated with a Cost No Fee contract structure for engineering services?
The primary risk associated with a Cost No Fee (CNF) contract is the potential for reduced contractor incentive to control costs. In a CNF arrangement, the contractor is reimbursed for allowable costs but does not receive a fee or profit. While this can be beneficial for the government in situations where cost is less critical than timely delivery or performance, it may lead to less rigorous cost management by the contractor compared to fixed-price or cost-plus-incentive-fee contracts. The government bears the risk of cost overruns, and oversight is crucial to ensure costs are reasonable and allocable to the contract.
What does 'Full and Open Competition After Exclusion of Sources' imply about the bidding process?
'Full and Open Competition After Exclusion of Sources' signifies a procurement process that initially aimed for broad competition but ultimately excluded certain potential offerors. This exclusion is typically based on specific justifications, such as national security concerns, proprietary data limitations, or the need for specialized capabilities only available from a limited set of sources. While the intent was to allow any responsible source to submit an offer, the exclusion means the competition was not entirely unrestricted. The number of bidders considered after exclusions would determine the actual level of competition achieved.
What is the significance of NAICS code 334511 in understanding this contract?
The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' provides critical context for this contract. It indicates that the engineering services procured were related to the manufacturing and development of sophisticated instruments and systems used for these specific defense-related functions. This implies the contract likely involved work on technologies such as radar, sonar, GPS, inertial navigation systems, flight control systems, or related components, requiring specialized engineering expertise in these domains.
How does L3Harris Technologies, Inc.'s track record influence the assessment of this contract?
L3Harris Technologies, Inc. is a well-established and significant defense contractor known for its expertise in various aerospace and defense technologies, including communication, sensing, and electronic systems. Their extensive experience and existing infrastructure suggest a strong capability to perform complex engineering services. While this specific contract award doesn't detail performance outcomes, L3Harris's general track record implies a lower risk of technical or execution failure compared to a less experienced contractor. However, the assessment of value and cost-effectiveness still relies on the specific performance and pricing within this particular contract.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $46,566,646
Exercised Options: $46,566,646
Current Obligation: $46,566,646
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-17
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2020-09-22
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