Air Force's $122.8M contract for Java support services awarded to L3Harris Technologies raises questions about competition and value

Contract Overview

Contract Amount: $122,806,307 ($122.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2011-07-20

End Date: 2013-02-28

Contract Duration: 589 days

Daily Burn Rate: $208.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACAT III BIG SAFARI JAVA MAN B

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $122.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI JAVA MAN B Key points: 1. The contract's value of $122.8 million over its period of performance suggests a significant investment in specialized IT support. 2. Awarded on a sole-source basis, the lack of competition limits price discovery and potentially increases costs for taxpayers. 3. The firm-fixed-price contract type shifts performance risk to the contractor, but the absence of competition may negate cost savings. 4. The contract's duration of 589 days indicates a medium-term need for these specific Java support services. 5. The award to L3Harris Technologies, a large defense contractor, places this spending within the context of major defense IT procurements. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this $122.8 million contract is challenging without specific performance metrics or comparable sole-source awards. However, the lack of competition inherently raises concerns about whether the government secured the best possible price. Firm-fixed-price contracts are generally preferred for cost control, but without competitive pressure, the 'firm' price may not reflect true market value. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies, was considered. This approach is typically used when only one source is capable of meeting the requirement, often due to proprietary technology or unique expertise. The lack of competition means there was no opportunity for multiple vendors to bid, which limits the government's ability to explore different pricing structures and potentially achieve lower costs through a competitive bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding. This can lead to higher overall spending for the same services compared to a competed contract.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, which receives specialized IT support for its Java-based systems. The services delivered are crucial for maintaining the operational readiness and functionality of critical Air Force IT infrastructure. The geographic impact is primarily within the Department of Defense's operational footprint, with potential implications for personnel working with these systems. Workforce implications may include the need for specialized IT personnel within L3Harris Technologies to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of services.
No clear mechanism for performance-based incentives due to fixed-price nature and sole-source award.

Positive Signals

Firm-fixed-price contract shifts risk to the contractor.
Award to an established large defense contractor suggests a degree of reliability.
Specific contract number (DCA) may allow for detailed tracking within DoD systems.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software support and maintenance. The IT services market is vast and highly competitive, with significant government spending allocated to software development, maintenance, and support. Awards for specialized Java support can range from small, targeted engagements to large, multi-year contracts like this one. The market includes a wide array of providers, from large system integrators to niche software houses. This contract's value places it as a significant, though not exceptionally large, IT services procurement within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large defense contractor, L3Harris Technologies, there are no direct subcontracting implications for small businesses mandated by this specific award. This means opportunities for small businesses to participate in this particular contract are unlikely unless L3Harris voluntarily engages them. The overall impact on the small business ecosystem for IT services is neutral, as this contract does not actively promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General (DoDIG). Transparency regarding the sole-source justification and performance metrics would be key to assessing accountability. The firm-fixed-price nature implies that oversight will focus on deliverables and adherence to contract terms rather than cost-plus monitoring.

Related Government Programs

Defense-wide IT Modernization Programs
Air Force Software Development and Maintenance Contracts
Java Enterprise Edition Support Services
Big Safari Program (if applicable)
All Other Support Services (NAICS Code 561990)

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency on specific system supported.
Contract duration and value warrant close performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $122.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI JAVA MAN B

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 $122.8 million.

What is the period of performance?

Start: 2011-07-20. End: 2013-02-28.

What specific Java-related systems or applications does this contract support for the Air Force?

The contract details, identified by the award number DCA and associated with L3Harris Technologies, fall under the 'BIG SAFARI JAVA MAN B' designation. While the specific systems are not explicitly detailed in the provided data, 'BIG SAFARI' is an Air Force program focused on rapidly developing and fielding specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. Therefore, this contract likely supports Java-based software applications critical to the functionality and operation of these ISR systems, potentially involving data processing, analysis, or command and control interfaces. The 'JAVA MAN B' component further suggests a focus on specific Java implementations or platforms within this program.

What was the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. While the specific justification is not included in the abbreviated data, common reasons for sole-source awards in defense IT include the existence of unique capabilities or proprietary technology held by only one vendor, urgent and compelling needs where competition is impractical, or when a specific system requires support from the original developer. For a contract under the 'BIG SAFARI' program, it's plausible that L3Harris Technologies possessed unique expertise or proprietary software components essential for the targeted ISR systems, making competition infeasible or detrimental to program timelines.

How does the $122.8 million contract value compare to similar IT support contracts within the Department of Defense?

The $122.8 million value for this contract is substantial, placing it in the mid-to-large tier for IT support services within the Department of Defense. While exact comparisons are difficult without knowing the precise scope and duration of services, the DoD frequently awards contracts in the tens to hundreds of millions of dollars for specialized IT support, software maintenance, and system integration. However, the sole-source nature of this award means its value cannot be directly benchmarked against competitively bid contracts, which typically yield lower prices for comparable services. The 'BIG SAFARI' program itself often involves rapid, tailored solutions, which can sometimes command higher prices due to specificity and urgency.

What is L3Harris Technologies' track record with similar sole-source IT contracts for the Air Force or DoD?

L3Harris Technologies is a major defense contractor with extensive experience in providing a wide range of IT, aerospace, and defense solutions to the U.S. military. While specific details on their sole-source IT contract history are not provided here, the company frequently secures large contracts, including sole-source awards, particularly for specialized systems and technologies where they hold a unique position. Their involvement in programs like 'BIG SAFARI' suggests a history of delivering complex, mission-critical capabilities. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the frequency, value, and nature of their past sole-source awards to the DoD.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $122.8 million is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not be achieving the best possible price for the services rendered. Other risks include vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility and innovation. There's also a risk that the contractor may not prioritize efficiency or cost-effectiveness as strongly as they would under competitive conditions. Furthermore, the justification for the sole-source award itself needs rigorous scrutiny to ensure it was indeed necessary and not a result of poor planning or market research.

How does the 'All Other Support Services' NAICS code (561990) relate to the specific services provided under this contract?

The NAICS code 561990, 'All Other Support Services,' is a broad category that encompasses a wide range of business support activities not classified elsewhere. For this contract, which involves 'BIG SAFARI JAVA MAN B' support, it suggests that the services provided are highly specialized and do not fit neatly into more specific IT-related NAICS codes like software publishing or computer systems design. This code might be used when the contract involves a mix of services, including technical support, system integration, maintenance, and potentially project management, all centered around specific Java applications within the Air Force's ISR domain. The broadness of the code underscores the unique or niche nature of the support required.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 03

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: $122,806,307

Exercised Options: $122,806,307

Current Obligation: $122,806,307

Contract Characteristics

Cost or Pricing Data: NO

Timeline