DoD Awards L3Harris $30.8M for Polish & Indian Air Force AIDEWS Spares & Services

Contract Overview

Contract Amount: $30,798,592 ($30.8M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-10-25

End Date: 2024-06-30

Contract Duration: 2,075 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: AIDEWS SPARES AND ASSOCIATED SERVICES FOR THE POLISH AND INDIAN AIR FORCES.

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: AIDEWS SPARES AND ASSOCIATED SERVICES FOR THE POLISH AND INDIAN AIR FORCES. Key points: 1. Contract awarded to L3Harris Technologies, Inc. for critical Air Defense Integrated Electronic Warfare System (AIDEWS) spares and services. 2. The contract supports the Polish and Indian Air Forces, indicating international military cooperation and equipment interoperability. 3. A fixed-price incentive contract type suggests shared risk between the government and contractor to control costs. 4. The significant duration (2075 days) points to a long-term need for sustainment and support of complex defense systems.

Value Assessment

Rating: fair

The contract value of $30.8 million over approximately 6.8 years is difficult to assess without specific unit pricing. However, the fixed-price incentive structure aims to manage costs, but the lack of a clear benchmark makes direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited source justification. This limits price discovery and potentially leads to higher costs compared to a fully competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized spares and services, as market forces are not fully leveraged.

Public Impact

Ensures operational readiness of AIDEWS for allied air forces, enhancing regional security and interoperability. Supports advanced electronic warfare capabilities crucial for modern air defense operations. Potential for technology transfer and sustainment expertise to international partners. Impacts the defense industrial base, specifically in electronic warfare systems manufacturing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about cost-effectiveness.
  • Lack of publicly available pricing benchmarks hinders value assessment.
  • Long-term contract duration requires ongoing oversight for performance and cost control.

Positive Signals

  • Supports critical defense capabilities for allied nations.
  • Fixed-price incentive contract aims to align contractor and government interests.
  • Long contract duration ensures sustained support for essential systems.

Sector Analysis

This contract falls within the defense sector, specifically focusing on electronic warfare systems. Spending in this area is driven by evolving geopolitical threats and the need for advanced technological superiority. Benchmarks for similar complex electronic warfare sustainment contracts are often proprietary or difficult to access.

Small Business Impact

The contract was awarded to L3Harris Technologies, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

The limited competition and fixed-price incentive structure necessitate robust oversight from the Department of the Air Force to ensure fair pricing, timely delivery, and adherence to contract terms. Tracking performance metrics and cost expenditures will be crucial for accountability.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition may lead to higher costs.
  • Lack of detailed pricing data hinders value assessment.
  • Long contract duration requires sustained oversight.
  • Potential for vendor lock-in with specialized systems.

Tags

search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to L3HARRIS TECHNOLOGIES, INC.. AIDEWS SPARES AND ASSOCIATED SERVICES FOR THE POLISH AND INDIAN AIR FORCES.

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 $30.8 million.

What is the period of performance?

Start: 2018-10-25. End: 2024-06-30.

What is the specific unit cost for the AIDEWS spares and services, and how does it compare to industry benchmarks for similar electronic warfare components?

The provided data does not include specific unit costs, making a direct comparison to industry benchmarks impossible. The total contract value of $30.8 million is spread over a significant period and includes associated services. Without detailed cost breakdowns, assessing the value for money is challenging. Further analysis would require access to the contract's detailed pricing structure and relevant market data.

What are the risks associated with a 'not available for competition' award for critical defense systems like AIDEWS, particularly regarding long-term sustainment costs and potential technological obso

Awarding critical defense systems without competition poses risks of inflated costs due to lack of market pressure and potential complacency from the sole provider. Long-term sustainment costs can escalate without competitive bidding. Furthermore, reliance on a single source might slow down the adoption of newer technologies, leading to potential obsolescence if the contractor does not proactively innovate or if alternatives are not explored.

How effective is the fixed-price incentive contract structure in ensuring cost control and performance for the AIDEWS sustainment program, given the limited competition?

The fixed-price incentive (FPI) contract aims to control costs by establishing target costs and prices, with shared savings or overruns between the government and contractor. While FPI can be effective, its success in this limited-competition scenario depends heavily on the accuracy of the initial cost estimates and the government's ability to monitor performance closely. Without robust competition, the incentive to aggressively manage costs might be weaker.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA854018R0032

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $30,798,592

Exercised Options: $30,798,592

Current Obligation: $30,798,592

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $188,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA854017D0002

IDV Type: IDC

Timeline

Start Date: 2018-10-25

Current End Date: 2024-06-30

Potential End Date: 2024-06-30 00:00:00

Last Modified: 2025-04-26

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