DoD's $19.5M L3Harris contract for engineering services awarded via sole-source justification

Contract Overview

Contract Amount: $19,492,505 ($19.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2026-03-30

Contract Duration: 484 days

Daily Burn Rate: $40.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $19.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Significant duration of 484 days suggests a complex or ongoing need for services. 3. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns. 4. Awarded by the Department of the Air Force, indicating a focus on aerospace and defense engineering. 5. The contract's value is substantial, requiring careful oversight to ensure taxpayer value. 6. Engineering services are critical for defense readiness and technological advancement.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns. The sole-source nature limits direct comparison to competitively bid contracts. However, the duration and scope suggest a significant investment. The CPFF structure, while allowing flexibility, can lead to higher costs if not managed rigorously, potentially impacting overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not provided but typically implies a lack of available sources, urgent need, or proprietary technology. The absence of competition means potential savings from a bidding process were likely forgone, and pricing may not have been driven down by market forces.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price.

Public Impact

The Department of the Air Force benefits from specialized engineering expertise to support its missions. Services delivered likely contribute to the development, maintenance, or enhancement of defense systems. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include employment for engineers and technical staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not closely monitored.
Lack of competition may reduce transparency in pricing and cost justification.
Contract duration of over a year requires sustained oversight to ensure performance and value.

Positive Signals

Award to an established contractor, L3Harris Technologies, suggests potential for reliable performance.
Engineering services are crucial for maintaining and advancing defense capabilities.
Contract is for a specific, defined period, allowing for reassessment of needs upon completion.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for specialized engineering services supporting government defense needs is substantial, often characterized by long-term relationships and high barriers to entry due to security clearances and technical expertise. Spending in this area is driven by the need for innovation, system upgrades, and maintenance of complex military assets.

Small Business Impact

The contract data indicates that small business participation (ss and sb fields) is false, meaning there is no explicit small business set-aside. There is no information provided on subcontracting plans, so the extent to which small businesses will benefit indirectly through subcontracts is unknown. This contract does not appear to be directly supporting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency may be limited due to the sole-source nature and the proprietary aspects of engineering services. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Defense Engineering Services
Aerospace Engineering Support
Military Systems Development
Department of Defense Contracts
Sole-Source Procurement

Risk Flags

Sole-source award
Cost-reimbursement contract type (CPFF)
Lack of competition
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 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 $19.5 million.

What is the period of performance?

Start: 2024-12-01. End: 2026-03-30.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs, or when the services require unique capabilities or proprietary knowledge that only one contractor possesses. Without the official justification document, it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source procurements, as it limits the ability to verify if competition was truly not feasible or if it was simply deemed unnecessary.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for engineering services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved, such as in research and development or complex engineering projects. While they offer flexibility, they can be less cost-efficient than fixed-price contracts because the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. This can create less incentive for the contractor to control costs compared to fixed-price contracts, where the profit is tied to managing expenses. However, for highly uncertain projects, CPFF can ensure that necessary work is completed without the contractor being unduly penalized by unforeseen cost increases, provided robust oversight is in place.

What is the typical performance history of L3Harris Technologies Integrated Systems L.P. on similar government contracts?

L3Harris Technologies Integrated Systems L.P. is a large and established defense contractor with a significant history of performing various engineering and technical services for the U.S. government, particularly the Department of Defense. While specific performance metrics for this exact contract are not yet available as it is set to begin in December 2024, the company generally has a track record of delivering complex solutions. However, like many large contractors, they may have faced past performance issues or disputes on specific contracts. A comprehensive review would require examining their contract performance reports (CPARS) and any documented issues on prior engagements.

What are the potential risks associated with a 484-day contract duration for engineering services?

A contract duration of 484 days (approximately 16 months) for engineering services presents several potential risks. Firstly, the longer duration increases the risk of scope creep, where the project's objectives or requirements expand beyond the original agreement, potentially leading to cost overruns and schedule delays. Secondly, market conditions, technological advancements, or the government's own strategic priorities could shift significantly during this period, potentially making the contracted services less relevant or requiring costly adjustments. Lastly, maintaining consistent oversight and ensuring the contractor remains focused and efficient over an extended period requires sustained effort and resources from the government.

How does this contract's value compare to other engineering services contracts awarded by the Department of the Air Force?

The contract value of approximately $19.5 million is a significant sum for engineering services. However, without specific details on the scope and nature of the services, direct comparison is difficult. The Department of the Air Force awards a wide range of engineering contracts, from small, specialized technical support tasks to large-scale system development projects, with values varying dramatically. This contract appears to be of moderate to significant size within the engineering services category. Benchmarking would require analyzing contracts with similar service descriptions, durations, and complexity levels, which are not readily available in the provided data.

What are the implications of this contract being awarded in Texas?

The contract being awarded to L3Harris Technologies Integrated Systems L.P. located in Texas (st: TX, sn: TEXAS) has several implications. It signifies a direct economic benefit to the state through contract spending, potentially supporting jobs and related businesses within the region. For the Department of the Air Force, having a contractor located in Texas might offer logistical advantages or align with existing strategic partnerships or infrastructure in the area. It also means that oversight activities, site visits, and communication might be facilitated by the contractor's proximity, although modern communication tools often mitigate geographic distance.

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: COST PLUS FIXED FEE (U)

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: $21,730,923

Exercised Options: $19,492,505

Current Obligation: $19,492,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862024G4021

IDV Type: BOA

Timeline