DoD awards $34.5M for Armed Overwatch aircraft, with L3Harris Technologies as prime contractor

Contract Overview

Contract Amount: $34,551,921 ($34.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-06-06

End Date: 2029-03-31

Contract Duration: 1,759 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMED OVERWATCH - DELIVERY ORDER FOUR REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - ARMED OVERWATCH STATEMENT OF WORK ON THE BASE IDIQ.

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ARMED OVERWATCH - DELIVERY ORDER FOUR REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - ARMED OVERWATCH STATEMENT OF WORK ON THE BASE IDIQ. Key points: 1. Contract focuses on aircraft manufacturing, with a significant value for a single delivery order. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration spans over 4 years, indicating a long-term need. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award is a delivery order against a base IDIQ, suggesting it's part of a larger framework. 6. The primary location for performance is Texas.

Value Assessment

Rating: good

The contract value of $34.5 million for a delivery order is substantial. Benchmarking against similar aircraft manufacturing contracts would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests a degree of cost control. Without specific performance metrics or comparable unit costs, a definitive value assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that the agency sought the best available solution and price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, potentially leading to cost savings and improved performance.

Public Impact

The Department of Defense, specifically the Air Force, is the primary beneficiary, acquiring critical aircraft capabilities. The contract supports the delivery of aircraft and associated requirements for the Armed Overwatch program. Performance is primarily located in Texas, potentially creating or sustaining jobs in that region. The program's success will impact military readiness and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all eventualities.
Dependence on a single contractor for a critical capability could pose supply chain risks.
Scope creep could increase the total cost beyond the initial award amount if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost predictability for the government.
Long contract duration allows for sustained program support and potential for economies of scale.
Delivery order against a base IDIQ indicates a pre-vetted contractor and established framework.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector (NAICS 336411). This sector is characterized by high technological complexity and significant capital investment. The global aerospace and defense market is substantial, with government contracts forming a key segment. L3Harris Technologies is a major player in this industry, known for its defense electronics and systems integration capabilities. This award represents a specific procurement within the broader defense spending landscape for aviation assets.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not explicitly part of this specific award. This suggests the contract was not targeted towards small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within L3Harris Technologies' performance plan for this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some inherent cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Armed Overwatch Program
Aircraft Procurement
Department of the Air Force Contracts
L3Harris Technologies Contracts

Risk Flags

Potential for schedule delays
Risk of technical challenges
Supply chain vulnerability
Long-term program sustainment costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ARMED OVERWATCH - DELIVERY ORDER FOUR REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - ARMED OVERWATCH STATEMENT OF WORK ON THE BASE IDIQ.

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 $34.6 million.

What is the period of performance?

Start: 2024-06-06. End: 2029-03-31.

What is the historical spending pattern for the Armed Overwatch program, and how does this delivery order compare?

Analyzing historical spending for the Armed Overwatch program requires access to detailed contract databases beyond this single award. Typically, such programs involve multiple delivery orders or contract phases over several years. This $34.5 million delivery order represents a significant, but likely not the entirety, of the program's funding. To understand the pattern, one would need to examine previous awards under the base IDIQ, track total program expenditure over time, and compare current spending against initial budget projections and previous fiscal year outlays. Without this broader context, it's difficult to ascertain if this award is in line with historical trends or represents a deviation.

How does the pricing of this contract compare to similar aircraft manufacturing contracts awarded by the DoD?

A direct comparison of pricing for this $34.5 million delivery order requires access to detailed cost breakdowns and specifications for comparable contracts. Factors such as aircraft type, capabilities, quantity, and specific manufacturing processes significantly influence unit costs. Benchmarking would involve identifying contracts for similar platforms (e.g., light attack aircraft, specialized surveillance platforms) awarded around the same period, considering inflation, and analyzing the price per unit or per flight hour. Given that this is a firm fixed-price contract awarded under full and open competition, it suggests the government sought competitive bids to ensure reasonable pricing. However, without specific comparable data, a definitive assessment of whether this represents excellent, fair, or concerning value is challenging.

What are the key performance indicators (KPIs) for this contract, and how will L3Harris Technologies' performance be measured?

The specific Key Performance Indicators (KPIs) for this Armed Over watch delivery order are detailed in Attachment 01, the Statement of Work (SOW), which is not fully provided here. However, typical KPIs for aircraft manufacturing and delivery contracts include on-time delivery schedules, adherence to technical specifications and quality standards, system reliability, and potentially performance metrics related to flight hours or operational readiness post-delivery. The government will likely monitor L3Harris's progress against these defined metrics throughout the contract period (ending March 31, 2029). Performance evaluations would inform future contract awards and contractor CPARS (Contractor Performance Assessment Reporting System) ratings.

What is L3Harris Technologies' track record with similar defense contracts, particularly in aircraft manufacturing?

L3Harris Technologies has a significant track record in the defense sector, including extensive experience in aerospace systems, electronics, and integrated solutions. They have been involved in various aircraft programs, including modifications, upgrades, and potentially new platform development or manufacturing. Their history includes contracts with the Department of Defense and other government agencies. A thorough review of their past performance, including CPARS ratings and any past performance issues or successes on similar large-scale aircraft manufacturing or integration projects, would be necessary to fully assess their capability and reliability for this specific Armed Overwatch contract. Their established presence suggests they possess the necessary infrastructure and expertise.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or cost overruns?

Potential risks associated with this contract include technical challenges in meeting the precise specifications of the Armed Overwatch aircraft, potential schedule delays in manufacturing and delivery, and the possibility of cost overruns, although the firm fixed-price structure aims to mitigate the latter. Given the complexity of modern aircraft, integration issues between different systems could arise. Furthermore, supply chain disruptions for specialized components could impact delivery timelines. The long duration of the contract (over 4 years) also introduces risks related to evolving threats, technological obsolescence, and potential changes in government requirements or funding priorities. Robust program management and risk mitigation strategies by both the contractor and the Air Force are crucial.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $34,551,921

Exercised Options: $34,551,921

Current Obligation: $34,551,921

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $63,706,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863722DB001

IDV Type: IDC

Timeline