DoD Awards L3Harris $43.6M for VIPSAM Crypto Modernization, Raising Oversight Concerns
Contract Overview
Contract Amount: $43,655,733 ($43.7M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2027-06-30
Contract Duration: 1,097 days
Daily Burn Rate: $39.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VIPSAM CRYPTO MODERNIZATION
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $43.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: VIPSAM CRYPTO MODERNIZATION Key points: 1. Significant contract value of $43.6 million for critical modernization. 2. Sole-source award to L3Harris Technologies raises questions about competition. 3. Long performance period (1097 days) requires ongoing scrutiny. 4. Focus on IT modernization within the Department of the Air Force.
Value Assessment
Rating: questionable
The contract value of $43.6 million is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar modernization efforts. The lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may not yield the best value for taxpayers.
Taxpayer Impact: The absence of competition for a $43.6 million contract potentially leads to higher costs for taxpayers.
Public Impact
Modernization of critical cryptographic systems ensures national security. Potential for increased cybersecurity resilience. Taxpayer funds are allocated to a single, non-competed vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Long contract duration
Positive Signals
- Critical modernization effort
- Supports Air Force operations
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, but the core function is IT modernization. Benchmarking IT modernization costs is complex, especially for specialized cryptographic systems.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. The sole-source nature further limits opportunities for small business participation.
Oversight & Accountability
The sole-source award warrants close oversight to ensure fair pricing and effective execution. The Department of Defense should provide justification for the lack of competition and monitor performance closely.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially inflates costs.
- Lack of transparency regarding the specific technologies and pricing structure.
- Long contract duration increases the risk of cost overruns or performance issues.
- Potential for vendor lock-in due to specialized nature of the modernization.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. VIPSAM CRYPTO MODERNIZATION
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 $43.7 million.
What is the period of performance?
Start: 2024-06-28. End: 2027-06-30.
What is the specific justification for awarding this critical modernization contract on a sole-source basis to L3Harris Technologies?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. For this VIPSAM crypto modernization, the DoD would need to demonstrate that L3Harris possesses the exclusive expertise or technology essential for this specific upgrade, and that competitive procurement would be impractical or detrimental to national security.
How will the Department of the Air Force ensure fair pricing and value for money given the sole-source nature of this $43.6 million contract?
To ensure fair pricing, the Air Force should conduct thorough cost analyses, potentially using historical data from similar sole-source contracts or independent cost estimates. They should also closely monitor contract performance, milestones, and deliverables, and negotiate pricing based on these factors. Robust oversight and clear performance metrics are crucial to mitigate the risks associated with non-competitive awards.
What are the potential risks to national security if the VIPSAM crypto modernization is not effectively implemented by L3Harris?
Failure to effectively implement the VIPSAM crypto modernization could leave critical communication and data systems vulnerable to interception or compromise by adversaries. This could impact operational security, intelligence gathering, and the overall effectiveness of Air Force missions. Outdated or flawed cryptographic systems pose a significant national security risk in the current threat landscape.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: L3harris Technologies, Inc
Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,655,733
Exercised Options: $43,655,733
Current Obligation: $43,655,733
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862021G4027
IDV Type: BOA
Timeline
Start Date: 2024-06-28
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-11-18
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