DoD awards $15.7M engineering services contract to L3Harris Technologies for the AIDEWS system
Contract Overview
Contract Amount: $15,735,102 ($15.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-04-28
End Date: 2026-05-31
Contract Duration: 1,129 days
Daily Burn Rate: $13.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES APPLICABLE TO THE AIDEWS SYSTEM
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $15.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING SERVICES APPLICABLE TO THE AIDEWS SYSTEM Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract duration of over 1000 days suggests a long-term need for these specialized engineering services. 3. Limited competition raises concerns about potential overpricing and reduced innovation. 4. The specific system, AIDEWS, indicates a focus on advanced electronic warfare or similar defense technologies. 5. Performance is tied to the successful delivery of engineering services for a critical defense system.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar engineering services for defense systems. The cost-plus-fixed-fee structure inherently carries more risk for the government compared to fixed-price contracts, as contractor costs are reimbursed plus a fixed fee. Without insight into the labor hours, rates, and overhead applied, it's difficult to definitively assess if the pricing represents good value for money. However, the lack of competition suggests potential for higher-than-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing, potentially leading to higher overall costs for this critical defense system.
Public Impact
The Department of Defense, specifically the Air Force, benefits from specialized engineering support for the AIDEWS system. Services delivered include engineering expertise crucial for the development, maintenance, or enhancement of the AIDEWS. The contract is likely to impact the workforce in New Jersey, where L3Harris Technologies has a presence. This contract supports national defense objectives by ensuring the functionality of advanced electronic warfare or related systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing advantages.
- Cost-plus-fixed-fee contract type introduces potential for cost overruns.
- Lack of detailed performance metrics makes value assessment difficult.
- Limited public information on the specific AIDEWS system and its criticality.
Positive Signals
- Contract awarded to an established defense contractor, L3Harris Technologies.
- Long-term contract duration suggests a sustained need and potential for stable support.
- Focus on engineering services for a specific defense system indicates specialized expertise is being utilized.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by the continuous need for modernization and maintenance of complex military systems. L3Harris Technologies is a significant player in this sector, providing a range of advanced technological solutions. Comparable spending benchmarks would typically involve analyzing other sole-source or competed engineering contracts for similar defense platforms, considering factors like system complexity and required expertise.
Small Business Impact
This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will be involved depends on L3Harris Technologies' subcontracting plan and the specific technical requirements of the AIDEWS system.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the sensitive defense application of the AIDEWS system. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Aerospace and Defense Technology Contracts
- Electronic Warfare Systems Support
- Department of Defense IT and Systems Support
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
- Limited transparency on system details
Tags
defense, department-of-defense, air-force, engineering-services, l3harris-technologies, aidevs-system, sole-source, cost-plus-fixed-fee, new-jersey, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.7 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING SERVICES APPLICABLE TO THE AIDEWS SYSTEM
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 $15.7 million.
What is the period of performance?
Start: 2023-04-28. End: 2026-05-31.
What is the specific nature of the AIDEWS system and its criticality to Air Force operations?
The AIDEWS system likely refers to an Advanced Integrated Defensive Electronic Warfare System. These systems are crucial for modern air combat, providing capabilities such as threat detection, electronic jamming, and countermeasures to protect aircraft from enemy radar and missile threats. The criticality stems from its role in ensuring pilot survivability and mission success in contested airspace. Specific details are often classified due to the sensitive nature of electronic warfare technology and operational tactics.
How does the cost-plus-fixed-fee (CPFF) contract structure compare to other contract types for similar engineering services?
The Cost-Plus-Fixed-Fee (CPFF) structure reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, offering more cost certainty to the government. CPFF is often used when the scope of work is not well-defined or involves significant uncertainty, such as in research and development or complex engineering projects. While it allows for flexibility, it places a greater burden on the government to monitor costs to prevent overruns, making it generally less desirable than fixed-price options when feasible.
What are the potential risks associated with a sole-source award for engineering services?
Sole-source awards carry several risks. Primarily, the lack of competition can lead to inflated prices as the contractor faces no market pressure to offer competitive rates. It can also stifle innovation, as there's less incentive for the contractor to find more efficient or novel solutions. Furthermore, it limits the government's ability to switch providers if performance issues arise or if a better-suited alternative emerges. This dependence on a single supplier can also create vulnerabilities if that supplier experiences financial distress or operational disruptions.
What is L3Harris Technologies' track record with the Department of Defense, particularly in engineering services?
L3Harris Technologies is a major defense contractor with a long history of providing a wide array of products and services to the Department of Defense. They have extensive experience in areas such as electronic warfare, communications, sensors, and avionics. Their track record includes numerous large contracts for system development, integration, and sustainment. While specific performance metrics for individual contracts are often not publicly detailed, L3Harris is generally considered a capable and experienced provider within the defense industrial base.
How does this contract's value compare to historical spending on similar engineering services for defense systems?
Direct comparison is difficult without specific details on the AIDEWS system's complexity and the scope of engineering services. However, the $15.7 million award over approximately three years suggests a significant but not exceptionally large contract within the defense sector. Engineering services for complex defense platforms can range from millions to billions of dollars depending on the system's lifecycle stage (e.g., R&D, sustainment, upgrades) and the level of technical expertise required. The sole-source nature and CPFF structure warrant careful scrutiny of cost efficiency relative to market norms for comparable, competed services.
What are the implications of the contract's location in New Jersey (NJ) for the local economy and workforce?
A contract awarded to a company with operations in New Jersey suggests potential economic benefits for the state. This could include job creation or retention for engineers, technicians, and support staff working on the AIDEWS project. It also contributes to the local economy through supplier relationships and associated spending. The presence of a major defense contractor like L3Harris in New Jersey supports a skilled workforce and contributes to the state's technological and industrial base.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $15,735,102
Exercised Options: $15,735,102
Current Obligation: $15,735,102
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852317D0005
IDV Type: IDC
Timeline
Start Date: 2023-04-28
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-12-23
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