Air Force's $34M RC-135 Contractor Field Services contract awarded to L3Harris Technologies for aircraft parts

Contract Overview

Contract Amount: $34,006,396 ($34.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-03-01

End Date: 2018-03-31

Contract Duration: 395 days

Daily Burn Rate: $86.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF ACAT III BIG SAFARI RJ RC-135 CONTRACTOR FIELD SERVICES (CFS)

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI RJ RC-135 CONTRACTOR FIELD SERVICES (CFS) Key points: 1. Contract awarded for specialized field services related to RC-135 aircraft, indicating a need for unique technical expertise. 2. The contract's value of $34 million over approximately one year suggests significant operational support requirements. 3. Awarded to a single vendor, raising questions about the extent of competition and potential for price optimization. 4. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code points to a focus on component-level support rather than full aircraft maintenance. 5. The contract's duration and value indicate a substantial, albeit short-term, commitment to contractor support. 6. Performance is located in Texas, suggesting a concentration of RC-135 assets or support infrastructure in that region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided. The total award of $34 million for a 13-month period equates to approximately $2.6 million per month. This figure needs to be compared against the cost of in-house support or similar contracts for specialized aircraft maintenance and field services. The 'COST NO FEE' contract type suggests that the contractor is reimbursed for allowable costs, with no fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when only one vendor possesses the necessary specialized skills, technology, or security clearances required for the service. The lack of competition means that the government did not explore alternative solutions or pricing from multiple providers, potentially leading to higher costs than if a competitive process had been undertaken.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing for taxpayers. This can result in paying a premium for the required services.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating and maintaining the RC-135 fleet, ensuring operational readiness. Services delivered likely include technical support, maintenance, repair, and potentially training for the RC-135 aircraft and its specialized systems. The geographic impact is concentrated in Texas, where the contractor is located and likely where the services are performed or supported. Workforce implications include the employment of specialized technicians and engineers by L3Harris Technologies to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Sole-source award raises concerns about the government's ability to explore all available market options.
Contract type (Cost No Fee) may offer limited incentive for contractor cost efficiency.

Positive Signals

Award to an established defense contractor (L3Harris) suggests a degree of reliability and existing capability.
Focus on specialized field services indicates a critical need being met for a complex aircraft platform.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technologies, and significant government investment. Contracts for specialized aircraft support, such as field services for the RC-135, are common within this sector. The market for such services is often dominated by a few large, experienced contractors capable of meeting stringent military requirements. Benchmarking this specific contract's value against broader aerospace manufacturing or maintenance contracts is difficult due to its specialized nature.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, L3Harris Technologies, is a large aerospace and defense company. There is no explicit information provided regarding subcontracting plans to small businesses. Without such data, it is difficult to assess the direct impact on the small business ecosystem, though large prime contracts often involve some level of subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the 'COST NO FEE' contract type, rigorous cost monitoring and auditing by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) would be expected to ensure allowable costs are reasonable and allocable. Transparency is generally maintained through contract databases, but specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

RC-135 Aircraft Maintenance and Support
Specialized Aviation Field Services
Defense Contractor Support Services
Air Force Logistics and Sustainment Programs

Risk Flags

Sole-source award limits competition.
Contract type may not incentivize cost savings.
Lack of detailed service scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF ACAT III BIG SAFARI RJ RC-135 CONTRACTOR FIELD SERVICES (CFS)

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 $34.0 million.

What is the period of performance?

Start: 2017-03-01. End: 2018-03-31.

What is the specific nature of the 'Contractor Field Services' provided under this award?

The provided data indicates the contract is for 'IGF::CT::IGF ACAT III BIG SAFARI RJ RC-135 CONTRACTOR FIELD SERVICES (CFS)'. While 'BIG SAFARI' often refers to rapid acquisition of special mission aircraft and systems, the specific services under CFS are not detailed. Typically, contractor field services for complex aircraft like the RC-135 can encompass a range of activities including on-site technical assistance, specialized maintenance and repair beyond organic capabilities, troubleshooting of unique systems, logistical support for deployed units, and potentially training for Air Force personnel on specific equipment or procedures. The NAICS code 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' suggests a focus on component-level support or specialized equipment integration rather than full airframe maintenance.

How does the cost of this contract compare to similar sole-source contracts for specialized aircraft support?

Direct comparison is difficult without knowing the exact scope of services and duration of comparable contracts. However, the total award of $34 million over 13 months ($2.6M/month) for specialized field services on a high-value intelligence, surveillance, and reconnaissance (ISR) platform like the RC-135 is substantial. Sole-source awards inherently lack a competitive benchmark, meaning the government relies on its negotiation power and cost-reimbursement oversight to manage expenses. If similar sole-source contracts for comparable aircraft platforms (e.g., other ISR or specialized mission aircraft) show significantly lower monthly costs for similar support levels, it could indicate potential overpricing or scope creep in this instance. Conversely, if the RC-135 requires exceptionally unique or complex support, the cost might be justified.

What are the risks associated with a sole-source award for critical aircraft support?

The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices as the contractor faces no market pressure to offer the most cost-effective solution. It also limits the government's ability to explore innovative approaches or alternative vendors who might offer better value or performance. Furthermore, sole-source awards can create vendor lock-in, making it difficult and potentially more expensive to switch providers in the future. For critical support services, there's also a risk if the sole provider experiences financial instability or operational issues, as there are no immediate alternatives readily available to ensure mission continuity.

What is L3Harris Technologies' track record with similar RC-135 support contracts or other complex military aircraft?

L3Harris Technologies (and its predecessor companies) has a significant history of supporting U.S. military aviation programs, including complex ISR platforms. They are known for providing a wide range of services, including avionics, electronic warfare systems, communications, and mission systems integration. While specific details on their RC-135 support contracts beyond this award are not provided here, their established presence in the defense sector suggests they possess the requisite technical expertise and infrastructure. A deeper dive into contract databases and performance reports would be needed to fully assess their track record specifically for RC-135 field services and overall performance trends.

How has federal spending on RC-135 support evolved over recent years?

Analyzing historical spending trends for RC-135 support requires accessing detailed contract databases and budget information. This specific contract represents a portion of the overall spending on the RC-135 program, which includes aircraft procurement, modifications, sustainment, and operational support. Spending on such specialized platforms can fluctuate based on modernization efforts, operational tempo, and the aging of the fleet. Without access to broader historical data for RC-135 sustainment and contractor field services across different fiscal years and agencies, it's impossible to determine if this $34 million award represents an increase, decrease, or stable level of spending compared to prior periods.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402

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: $34,006,396

Exercised Options: $34,006,396

Current Obligation: $34,006,396

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $171,696

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline