DoD's $40.5M L3Harris Contract for Engineering Services: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $40,510,352 ($40.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2025-11-30

Contract Duration: 364 days

Daily Burn Rate: $111.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Analysis of contract value against industry benchmarks for engineering services. 2. Assessment of competition dynamics, noting the sole-source nature of this award. 3. Identification of potential risks associated with limited competition and contractor performance. 4. Contextualization of this contract within broader Department of Defense engineering support. 5. Positioning of L3Harris Technologies within the defense engineering sector. 6. Evaluation of the contract's duration and delivery order structure.

Value Assessment

Rating: fair

Benchmarking the $40.5 million award for engineering services requires detailed comparison to similar contracts for specialized technical support within the Department of Defense. Given the 'NOT COMPETED' status, a direct price-to-performance ratio is difficult to establish without market data. The firm-fixed-price structure offers some cost certainty, but the absence of competitive bidding raises questions about whether the government secured the best possible value. Further analysis would involve comparing the labor rates and overhead applied to this contract against industry averages for similar engineering disciplines.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the most innovative solutions are considered. While justified in certain circumstances, sole-source awards warrant careful scrutiny to ensure they are not a result of inadequate planning or market research.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings and innovation that typically arise from a competitive bidding process. This could lead to higher overall spending for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving critical engineering services. The contract supports the development, integration, and sustainment of complex defense systems. Services are likely concentrated in Texas, where L3Harris has a significant presence. The contract supports a highly skilled technical workforce in the engineering and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to lack of competitive pressure.
Risk of vendor lock-in given the sole-source nature.
Limited visibility into alternative solutions or technological advancements not offered by the incumbent.

Positive Signals

Firm-fixed-price contract provides cost predictability.
L3Harris is an established defense contractor with a track record.
Contract duration allows for sustained support of critical programs.

Sector Analysis

The defense engineering services sector is a critical component of the aerospace and defense industry, characterized by high barriers to entry and specialized expertise. This contract falls within the broader category of professional, scientific, and technical services, with a specific focus on engineering. Spending in this area is substantial, driven by the continuous need for modernization and sustainment of military platforms and systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD to major defense contractors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, L3Harris Technologies, is a large defense corporation. While the contract itself is not set aside for small businesses, the prime contractor may engage small businesses as subcontractors. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear. Analysis of subcontracting goals and performance would be necessary to fully assess this.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified engineering services. Transparency is generally limited for sole-source awards, but contract modifications and performance reports are typically maintained within the agency's procurement systems. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Defense Engineering Services
Air Force Research and Development Contracts
L3Harris Technologies Prime Contracts
Sole-Source Defense Acquisitions
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award may limit price competition.
Contract duration of 364 days could indicate a need for ongoing services.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. BIG SAFARI

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 $40.5 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-11-30.

What is L3Harris Technologies' track record with the Department of Defense, particularly on similar engineering services contracts?

L3Harris Technologies is a major defense contractor with a long history of providing a wide array of services and products to the Department of Defense. They have a significant portfolio of contracts across various branches, including the Air Force, Army, and Navy, encompassing areas such as C5ISR, electronic warfare, space systems, and aviation systems. Their track record on engineering services contracts is generally robust, characterized by the ability to handle complex technical challenges and deliver integrated solutions. However, like any large contractor, specific contract performance can vary, and past performance reviews, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more granular understanding of their success rates, quality of work, and adherence to schedule and budget on comparable projects. Analyzing their history with the Air Force specifically would offer further relevant context for this 'BIG SAFARI' contract.

How does the $40.5 million value of this contract compare to other engineering services contracts awarded by the Air Force in the last fiscal year?

The $40.5 million value for this engineering services contract with L3Harris Technologies places it as a significant, but not exceptionally large, award within the Department of the Air Force's overall spending. The Air Force procures a vast range of engineering and technical support services annually, with contract values often ranging from a few million to hundreds of millions of dollars, and sometimes exceeding a billion for major system development or sustainment programs. To provide a precise comparison, one would need to access and analyze the Federal Procurement Data System (FPDS) or similar databases for the relevant fiscal year, filtering for contracts with the Air Force categorized under NAICS code 541330 (Engineering Services) or related codes. This analysis would reveal the distribution of contract values, identifying how many contracts fall within a similar range, and potentially highlight whether $40.5 million represents a typical, above-average, or below-average investment for this type of specialized engineering support.

What are the primary risks associated with awarding a sole-source contract of this magnitude for engineering services?

The primary risks associated with awarding a sole-source contract of this magnitude ($40.5 million) for engineering services revolve around potential lack of cost-effectiveness and reduced innovation. Without competition, the government loses the leverage to negotiate the best possible price, potentially leading to higher costs than if multiple bidders had vied for the contract. There's also a risk that the chosen contractor may not be incentivized to innovate or provide the most cutting-edge solutions, as they face no direct competitive threat. Furthermore, sole-source awards can sometimes indicate insufficient market research or planning by the procuring agency, raising concerns about whether alternative, potentially more capable or cost-efficient, solutions were overlooked. Dependence on a single provider can also create vulnerabilities if that provider experiences performance issues or financial instability.

How does the 'BIG SAFARI' program typically utilize engineering services contracts, and what is the expected outcome of this specific award?

The 'BIG SAFARI' (Broad Agency Announcement for Innovative Research and Development) program, managed by the Air Force Life Cycle Management Center (AFLCMC), focuses on rapidly acquiring and integrating capabilities to meet evolving operational needs. Engineering services contracts under BIG SAFARI are crucial for providing the technical expertise needed to design, develop, test, and deploy these capabilities. This specific $40.5 million award to L3Harris Technologies likely supports a particular BIG SAFARI initiative requiring specialized engineering skills, potentially in areas like intelligence, surveillance, reconnaissance (ISR), electronic warfare, or command and control systems. The expected outcome is the successful delivery of defined engineering tasks that contribute to the overall program objectives, ultimately enhancing the Air Force's technological advantage and operational effectiveness in a timely manner, consistent with the agile acquisition philosophy of BIG SAFARI.

What is the historical spending trend for engineering services under the 'BIG SAFARI' program or similar Air Force initiatives?

Historical spending trends for engineering services under the 'BIG SAFARI' program and similar Air Force initiatives generally show a consistent and significant investment. The Air Force relies heavily on external engineering expertise to support its complex acquisition programs, ranging from aircraft and space systems to cyber capabilities. Spending in this category often fluctuates based on the lifecycle stage of major programs – higher during development and initial fielding, and potentially stabilizing or shifting towards sustainment engineering later on. Analyzing historical data from the Federal Procurement Data System (FPDS) for 'BIG SAFARI' and related Air Force engineering services contracts (NAICS 541330) would reveal overall spending levels, identify key contractors, and indicate whether there's a trend towards increasing or decreasing reliance on such services. This context helps in evaluating whether the current $40.5 million award aligns with established spending patterns or represents a deviation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: L3harris Technologies, Inc

Address: 1655 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,510,352

Exercised Options: $40,510,352

Current Obligation: $40,510,352

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $809,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862024G4021

IDV Type: BOA

Timeline