Air Force Awards $37.3M Delivery Order to L3Harris for Aircraft Manufacturing Support

Contract Overview

Contract Amount: $37,300,208 ($37.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-04-12

End Date: 2027-06-10

Contract Duration: 789 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FA863725FB002 - DELIVERY ORDER 06 - ORDER FOR CONTRACTOR SUPPORT REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT.

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: FA863725FB002 - DELIVERY ORDER 06 - ORDER FOR CONTRACTOR SUPPORT REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT. Key points: 1. The $37.3 million order is for contractor support requirements, indicating a need for specialized expertise. 2. L3Harris Technologies Integrated Systems L.P. is the contractor, a significant player in the aerospace and defense sector. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Aircraft Manufacturing, a critical area for national defense and technological advancement.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type introduces potential for costs to exceed initial estimates. Benchmarking against similar support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms within the Cost Plus Fixed Fee structure warrant scrutiny to ensure fair market value.

Taxpayer Impact: Taxpayer funds are being used for specialized contractor support, necessitating efficient cost management to maximize value.

Public Impact

Supports critical aircraft manufacturing operations for the Air Force. Leverages private sector expertise for specialized technical requirements. Potential for cost growth due to the Cost Plus Fixed Fee structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Lack of detailed cost breakdown for unit pricing

Positive Signals

  • Full and open competition
  • Awarded to established defense contractor

Sector Analysis

This spending falls within the Aircraft Manufacturing sector, which is vital for national defense. Benchmarks for contractor support in this area can vary widely based on the specific services required.

Small Business Impact

This contract was awarded to L3Harris Technologies Integrated Systems L.P., a large business. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

Oversight will be crucial to monitor costs under the Cost Plus Fixed Fee structure and ensure the contractor meets all performance requirements outlined in the Statement of Work.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost overruns due to CPFF contract type
  • Lack of detailed cost breakdown
  • Limited insight into specific services provided
  • No indication of small business participation

Tags

aircraft-manufacturing, department-of-defense, oh, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. FA863725FB002 - DELIVERY ORDER 06 - ORDER FOR CONTRACTOR SUPPORT REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT.

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 $37.3 million.

What is the period of performance?

Start: 2025-04-12. End: 2027-06-10.

What specific services are included in the 'contractor support requirements' to justify the $37.3M cost?

The provided data does not detail the specific services. Attachment 01, the Statement of Work, would contain this information. Understanding the scope, such as engineering, maintenance, or specialized technical assistance, is crucial for assessing value and preventing scope creep.

How does the fixed fee component of the Cost Plus Fixed Fee contract align with industry standards for similar support services?

The fixed fee is a negotiated amount that the contractor earns regardless of the final cost. Its appropriateness depends on the complexity and risk of the work. A review of the fee's percentage relative to the estimated cost and comparison with similar contracts would be needed to assess its fairness.

What mechanisms are in place to ensure cost efficiency and prevent overruns given the Cost Plus Fixed Fee structure?

Effective oversight, clear performance metrics, and regular audits are key. The government should actively monitor expenditures against the estimated cost and ensure the contractor is incentivized to control costs. The Statement of Work should define cost control measures.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

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: $37,300,208

Exercised Options: $37,300,208

Current Obligation: $37,300,208

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $552,611

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

Start Date: 2025-04-12

Current End Date: 2027-06-10

Potential End Date: 2027-06-10 00:00:00

Last Modified: 2026-03-19

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