L3Harris awarded $14.6M for Air Force support, with a 2-year duration

Contract Overview

Contract Amount: $14,584,832 ($14.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $20.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KOREA PEACE PIONEER FOS IV

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: KOREA PEACE PIONEER FOS IV Key points: 1. Contract value appears reasonable given the scope of support activities. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Contract duration of two years presents moderate performance risk. 4. Firm-fixed-price structure shifts cost risk to the contractor. 5. Contractor's experience in similar support roles is a positive indicator. 6. Geographic location in Texas may offer logistical advantages.

Value Assessment

Rating: good

The contract value of $14.6 million over two years for 'Other Support Activities for Air Transportation' seems within a reasonable range for specialized defense support. Benchmarking against similar contracts is challenging without more specific details on the services provided. However, the firm-fixed-price nature of the award suggests that the contractor bears the primary cost risk, which can be a positive indicator of value if the scope is well-defined. The absence of competition, however, prevents a direct comparison of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or security clearances required for the specific service. The lack of competition means that taxpayers do not benefit from the price reductions that can arise from a competitive bidding process, and it limits the government's ability to explore alternative solutions or pricing structures.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government cannot leverage competitive pressures to secure the best possible price. This limits the government's negotiating power and potentially results in less efficient use of public funds.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential support for air transportation operations. Services provided are critical for maintaining the readiness and operational effectiveness of air assets. The contract's geographic impact is centered in Texas, where the contractor is located. Workforce implications are likely concentrated within L3Harris Technologies, potentially creating or sustaining specialized jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source nature limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed service scope makes independent value assessment difficult.
Contract duration of two years could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contractor's established presence and likely experience in defense support.
Clear end dates for the contract provide defined performance periods.

Sector Analysis

The 'Other Support Activities for Air Transportation' category falls within the broader aerospace and defense services sector. This sector is characterized by high technological requirements, stringent security protocols, and significant government spending. Contracts like this are crucial for maintaining the complex logistical and operational chains that support military aviation. Benchmarking spending in this specific niche is difficult without more granular data, but overall defense spending on support services represents a substantial portion of the defense budget.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the sole-source nature and the likely specialized requirements, it is improbable that small businesses would be primary recipients of subcontracting opportunities unless they possess highly niche capabilities directly relevant to L3Harris's solution. The impact on the broader small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract will 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 services. Transparency may be limited due to the sole-source nature, but contract award details are typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Transportation Support Services
Defense Logistics and Maintenance Contracts
Aerospace Support Services
Department of Defense Other Support Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed service description hinders value assessment.
Potential for vendor lock-in with a two-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. KOREA PEACE PIONEER FOS IV

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 $14.6 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What specific 'Other Support Activities for Air Transportation' are included under this contract?

The provided data does not detail the specific services encompassed by 'Other Support Activities for Air Transportation.' This category is broad and could include a range of functions such as maintenance planning, logistical support, technical data management, training support, or specialized operational assistance for air assets. Without a detailed Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to ascertain the precise nature of the support being provided by L3Harris Technologies. Understanding these specifics is crucial for a thorough value assessment and for comparing this contract to others within the defense sector.

What is the historical spending pattern for this specific type of support within the Department of the Air Force?

Historical spending data for 'Other Support Activities for Air Transportation' by the Department of the Air Force is not provided in the given information. To establish a pattern, one would need to analyze procurement databases for similar contracts awarded over several fiscal years. This analysis would reveal trends in contract values, durations, and the number of bidders (if competed). Understanding historical spending helps in identifying potential cost increases or decreases over time and assessing whether the current $14.6 million award is consistent with past investments in similar support functions. A significant deviation from historical norms, especially in a sole-source context, would warrant further investigation.

What is L3Harris Technologies' track record with similar sole-source contracts for the Department of Defense?

Assessing L3Harris Technologies' track record with similar sole-source contracts requires access to historical contract award data. A review of past awards would indicate the frequency of sole-source procurements for this contractor, the value and duration of those contracts, and their performance history. If L3Harris has a history of successfully delivering on sole-source contracts within the defense sector, it suggests a level of capability and reliability. However, a pattern of sole-source awards without clear justification could raise concerns about market competition and potentially higher costs. Further analysis would involve examining past performance evaluations and any documented issues.

How does the $14.6 million contract value compare to the market rate for comparable air transportation support services?

Directly comparing the $14.6 million contract value to a precise 'market rate' is challenging due to the sole-source nature of this award and the potentially unique specifications of the services. In a competitive environment, multiple bids would establish a market-driven price. For this contract, a benchmark would involve identifying similar, competed contracts awarded to other vendors for comparable services, adjusting for differences in scope, duration, and inflation. Without such comparable data, assessing whether this price represents good value is difficult. The firm-fixed-price structure implies the contractor believes this price is sufficient to cover costs and provide a profit, but the lack of competition prevents external validation.

What are the potential risks associated with a two-year contract duration for these support activities?

A two-year contract duration for air transportation support activities presents several potential risks. Firstly, it offers a limited timeframe for the government to assess the contractor's performance comprehensively. If issues arise late in the contract, there may be insufficient time to correct them or transition to a new provider before the contract expires. Secondly, a shorter duration might reduce the incentive for the contractor to invest in long-term process improvements or innovative solutions, focusing instead on meeting the immediate requirements. Lastly, if the services are critical and unique, a two-year term could lead to a 'contract cliff' where the government faces a rush to re-compete or extend, potentially at a disadvantage.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA869124RB006

Offers Received: 1

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: $14,584,832

Exercised Options: $14,584,832

Current Obligation: $14,584,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline