DoD Awards L3Harris $8.6M for Advanced Simulation Tech, Facing Limited Competition

Contract Overview

Contract Amount: $8,595,104 ($8.6M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2027-08-17

Contract Duration: 1,604 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNOLOGIES FOR ADVANCED SIMULATION CAPABILITIES

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TECHNOLOGIES FOR ADVANCED SIMULATION CAPABILITIES Key points: 1. Significant investment in advanced simulation capabilities for the Air Force. 2. L3Harris Technologies, Inc. is the primary contractor. 3. Potential for high impact on defense readiness and training. 4. Research and Development sector, specifically physical and engineering sciences.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is $8.6 million, which needs to be benchmarked against similar R&D contracts for advanced simulation technologies.

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 award mechanism (Delivery Order) might indicate a pre-existing contract vehicle, which could limit the scope of actual competition for this specific order.

Taxpayer Impact: Taxpayer funds are being used for critical R&D in defense simulation, aiming to enhance military capabilities and training effectiveness.

Public Impact

Enhances military training and operational readiness through advanced simulation. Supports technological advancement in the defense sector. Potential for spin-off technologies benefiting civilian industries. Invests in U.S. technological superiority in defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Limited visibility into the specific performance metrics and deliverables.
  • Potential for scope creep in R&D projects.

Positive Signals

  • Addresses critical need for advanced simulation capabilities.
  • Leverages established contractor expertise.
  • Competition was sought, indicating an effort for best value.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining a technological edge, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor is a large corporation, suggesting limited direct opportunities for small businesses in this specific award, though they may be involved as subcontractors.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the R&D objectives are met efficiently. The Department of the Air Force will be responsible for monitoring progress and expenditures.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • R&D projects inherently carry uncertainty in outcomes.
  • Potential for contractor to prioritize profit over cost efficiency.
  • Limited information on specific performance metrics.

Tags

research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to L3HARRIS TECHNOLOGIES, INC.. TECHNOLOGIES FOR ADVANCED SIMULATION CAPABILITIES

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

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 $8.6 million.

What is the period of performance?

Start: 2023-03-27. End: 2027-08-17.

What is the projected return on investment for this advanced simulation technology development?

The projected return on investment is difficult to quantify precisely for R&D contracts. However, the investment is expected to yield significant returns through improved training effectiveness, reduced real-world training costs, enhanced mission planning, and potentially the development of new technologies with dual-use applications, ultimately bolstering national security.

What are the primary risks associated with the Cost Plus Fixed Fee contract type for this R&D project?

The primary risks with a Cost Plus Fixed Fee contract for R&D include potential cost overruns if the contractor's costs exceed initial estimates, as the government absorbs these costs. There's also a risk of reduced incentive for the contractor to control costs aggressively, as their fee is fixed. Effective government oversight is critical to mitigate these risks.

How will the effectiveness of the advanced simulation capabilities be measured and validated?

Effectiveness will likely be measured through a combination of technical performance metrics, user feedback from military personnel, and demonstrated improvements in training outcomes or mission rehearsal capabilities. Validation may involve rigorous testing scenarios and comparison against predefined operational requirements and objectives set by the Department of the Air Force.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

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: 77 RIVER RD, CLIFTON, NJ, 07014

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,644,608

Exercised Options: $30,644,608

Current Obligation: $8,595,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA865020D1960

IDV Type: IDC

Timeline

Start Date: 2023-03-27

Current End Date: 2027-08-17

Potential End Date: 2027-08-17 00:00:00

Last Modified: 2025-12-18

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