DoD's $574M ELINT Signals Exploitation Contract Awarded to L3Harris Technologies

Contract Overview

Contract Amount: $57,445,216 ($57.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-10-09

End Date: 2026-10-08

Contract Duration: 2,556 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED EXPLOITATION OF ELECTRONIC INTELLIGENCE (ELINT) SIGNALS (AXES)

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $57.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ADVANCED EXPLOITATION OF ELECTRONIC INTELLIGENCE (ELINT) SIGNALS (AXES) Key points: 1. Contract focuses on advanced exploitation of electronic intelligence signals, a critical national security capability. 2. Awarded to a single, large defense contractor, suggesting a focus on specialized expertise and established performance. 3. The contract duration of over 6 years indicates a long-term need for these advanced research and development services. 4. Research and Development in Physical, Engineering, and Life Sciences is a broad category, but this specific focus is niche. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost control while allowing for flexibility in R&D. 6. Texas is the primary performance location, potentially impacting regional economic and workforce development.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging due to its specialized nature within R&D. However, the Cost Plus Fixed Fee structure aims to balance contractor incentive with cost control. The total value of $574.45 million over approximately 7 years suggests a significant investment in advanced capabilities. Without specific performance metrics or comparable contract data, a precise value-for-money assessment is difficult, but the duration and scope imply a substantial and potentially critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive process, though the specific details of the bidding and evaluation are not provided. Full and open competition is generally expected to yield fair pricing and identify the best value solution for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective and cost-efficient solution for a critical defense capability.

Public Impact

The primary beneficiaries are the Department of Defense and national security agencies requiring advanced electronic intelligence capabilities. Services delivered include research and development focused on exploiting electronic intelligence signals. The contract's performance is primarily located in Texas, potentially creating high-skilled jobs in the region. This contract supports the development of advanced technologies that enhance intelligence gathering and situational awareness for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The specialized nature of ELINT exploitation may limit the pool of qualified small businesses for subcontracting.
Long contract durations can sometimes reduce agility in adapting to rapidly evolving technological landscapes.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
L3Harris Technologies is a well-established defense contractor with a track record in complex systems.
The contract's focus on advanced R&D aligns with the DoD's strategic modernization goals.
The fixed fee component of the contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on advanced electronic intelligence (ELINT) signal exploitation. The defense industry heavily invests in such capabilities to maintain technological superiority. Comparable spending benchmarks are difficult to establish due to the niche nature of ELINT, but overall DoD R&D spending is in the tens of billions annually, highlighting the strategic importance of specialized areas like this.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals in the provided data. As a large, complex R&D contract awarded to a major defense contractor, the primary focus is likely on specialized capabilities that may not be readily available from small businesses. However, L3Harris may engage small businesses for specific components or services, but this is not a primary driver of the contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure cost control and adherence to research objectives. Inspector General investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is generally limited for classified or sensitive defense R&D contracts.

Related Government Programs

Advanced Persistent Threats (APT) Defense
Signals Intelligence (SIGINT) Modernization
Electronic Warfare Systems Development
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
DoD Research and Development Funding

Risk Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
Risk of technological obsolescence due to long contract duration.
Dependence on a single large contractor for critical R&D capabilities.
Limited transparency typical for advanced defense R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ADVANCED EXPLOITATION OF ELECTRONIC INTELLIGENCE (ELINT) SIGNALS (AXES)

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 $57.4 million.

What is the period of performance?

Start: 2019-10-09. End: 2026-10-08.

What is L3Harris Technologies' track record with similar advanced R&D contracts for the Department of Defense?

L3Harris Technologies, formed from the merger of L3 Technologies and Harris Corporation, has a substantial track record in defense contracting, including significant work in electronic warfare, intelligence, surveillance, and reconnaissance (ISR), and advanced communications systems. Both legacy companies were involved in numerous complex R&D programs for the DoD. L3Harris is known for its expertise in areas directly relevant to electronic intelligence (ELINT) and signals intelligence (SIGINT). While specific contract details for ELINT exploitation are often sensitive, the company's overall portfolio indicates a strong capability to handle large-scale, technologically advanced research and development efforts. Their history suggests they are a capable prime contractor for programs requiring deep technical expertise and program management for critical national security capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work can be uncertain or evolve. Under CPFF, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to manage costs effectively because the fee remains constant regardless of the final cost. However, it also requires robust government oversight to ensure that costs are reasonable and allocable to the contract. Unlike fixed-price contracts, there is less direct financial risk to the contractor for cost overruns, but the fixed fee provides a clear profit target. For R&D, CPFF allows flexibility to pursue innovative solutions while providing the government with a degree of cost predictability for the profit component.

What are the potential risks associated with the long duration (over 6 years) of this contract?

A contract duration exceeding six years for advanced R&D presents several potential risks. Firstly, technological obsolescence is a significant concern; the threat landscape and required capabilities can change rapidly, potentially rendering the developed solutions outdated before the contract concludes. Secondly, maintaining contractor focus and performance over such an extended period can be challenging. Thirdly, the government's requirements might evolve, necessitating contract modifications that could impact cost and schedule. Lastly, long-term commitments tie up significant funding that could otherwise be allocated to newer, potentially more promising technologies or different strategic priorities. Effective program management, including regular reviews and potential for contract restructuring, is crucial to mitigate these risks.

How does this contract align with broader Department of Defense investments in intelligence and electronic warfare capabilities?

This contract directly aligns with the Department of Defense's strategic emphasis on maintaining information superiority and countering evolving threats in the electromagnetic spectrum. Investments in advanced exploitation of electronic intelligence (ELINT) are critical for understanding adversary capabilities, supporting military operations, and developing effective electronic warfare (EW) countermeasures. The DoD consistently prioritizes R&D in areas that enhance intelligence, surveillance, and reconnaissance (ISR) and EW. This contract represents a significant commitment to advancing the nation's ability to collect, process, and act upon electronic signals, which is fundamental to modern warfare and national security strategy.

What is the significance of awarding this contract through 'Full and Open Competition' despite the specialized nature of the work?

Awarding a specialized R&D contract like this through 'Full and Open Competition' signifies the DoD's commitment to seeking the best possible solution and price from the widest possible range of qualified sources. Even in niche areas, competition encourages innovation and efficiency. It ensures that the government is not limited to a single provider and can leverage the diverse capabilities within the defense industrial base. While the number of bidders might be limited by the highly specialized nature of ELINT exploitation, the competitive process itself provides a crucial mechanism for price discovery and ensures that the selected contractor, L3Harris Technologies, has demonstrated superior technical merit and value compared to other potential offerors.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875018S7015

Offers Received: 2

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, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,968,164

Exercised Options: $63,968,164

Current Obligation: $57,445,216

Actual Outlays: $364,052

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $21,948,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline