DoD's $546.5M ELINT Signals contract awarded to L3Harris Technologies for R&D

Contract Overview

Contract Amount: $5,465,000 ($5.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-06-15

End Date: 2028-08-15

Contract Duration: 1,888 days

Daily Burn Rate: $2.9K/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) II

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ADVANCED EXPLOITATION OF ELECTRONIC INTELLIGENCE (ELINT) SIGNALS (AXES) II Key points: 1. Contract awarded to a single, large defense contractor, indicating a focus on specialized capabilities. 2. The contract's duration of nearly 5 years suggests a long-term investment in advanced technology development. 3. Research and Development focus implies potential for future technological advancements and capabilities. 4. The cost-plus-fixed-fee structure allows for flexibility in research but requires careful cost oversight. 5. Awarded by the Department of the Air Force, aligning with strategic aerospace and intelligence priorities. 6. The contract value is substantial, reflecting the complexity and importance of electronic intelligence exploitation.

Value Assessment

Rating: good

The contract value of $546.5 million over approximately 5 years for advanced ELINT exploitation R&D appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale R&D contracts in defense intelligence is challenging due to proprietary information and unique requirements. However, the cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are difficult to predict, but it necessitates robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of two bids indicates a competitive environment, though the specific details of the bidding process and the nature of the competition (e.g., number of proposals received, evaluation criteria) are not fully detailed. A full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by fostering a competitive environment among potential offerors.

Public Impact

The Department of Defense, specifically the Air Force, will benefit from enhanced capabilities in exploiting electronic intelligence signals. This contract supports the development of advanced technologies crucial for national security and intelligence gathering. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located, but the technological advancements will have national implications. Workforce implications may include specialized R&D roles within L3Harris and its potential subcontractors, contributing to the high-tech defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract requires sustained oversight to ensure objectives are met.
Reliance on a single prime contractor for such a critical capability warrants close monitoring of performance and potential single points of failure.

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 focuses on R&D, indicating investment in future technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced electronic intelligence (ELINT) signal exploitation. The market for defense intelligence R&D is characterized by high barriers to entry, significant government investment, and a focus on cutting-edge technologies. Comparable spending benchmarks are difficult to ascertain due to the specialized nature of ELINT and the proprietary aspects of defense R&D. However, the value of $546.5 million is substantial and reflects the critical nature of intelligence capabilities for national security.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. L3Harris Technologies is a large prime contractor. While there may be opportunities for small businesses to subcontract, the primary award is not directed towards them. The impact on the small business ecosystem will depend on L3Harris's subcontracting strategy, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Given the R&D nature and CPFF structure, rigorous oversight will be crucial to monitor cost, schedule, and performance. Transparency may be limited due to the classified or sensitive nature of ELINT R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Advanced Electronic Warfare Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Technologies
Signals Intelligence (SIGINT) Development
Department of Defense Research and Development Programs
Air Force Advanced Technology Initiatives

Risk Flags

Cost Overrun Risk (CPFF structure)
Performance Risk (complex R&D)
Long-Term Dependency Risk (single prime)
Technology Obsolescence Risk (rapid tech evolution)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ADVANCED EXPLOITATION OF ELECTRONIC INTELLIGENCE (ELINT) SIGNALS (AXES) II

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 $5.5 million.

What is the period of performance?

Start: 2023-06-15. End: 2028-08-15.

What is L3Harris Technologies' track record with similar advanced intelligence R&D contracts?

L3Harris Technologies, and its predecessor companies, have a long history of developing and delivering complex electronic systems for defense and intelligence applications. They are known for their expertise in areas such as electronic warfare, communications, and intelligence processing. While specific details on past ELINT exploitation R&D contracts are often classified or proprietary, L3Harris has consistently been a major player in securing large, technologically advanced contracts from the Department of Defense. Their performance on previous large-scale R&D efforts would be a key factor in their selection for the AXES II program, suggesting a demonstrated capability to handle complex research objectives and manage significant budgets within the defense sector.

How does the $546.5M contract value compare to historical spending on ELINT R&D?

Direct historical spending comparisons for specific ELINT exploitation R&D programs are challenging due to the classified nature of much of this work and the evolving technological landscape. However, the $546.5 million awarded to L3Harris for the AXES II program over its estimated duration is a significant investment. It suggests a sustained or increased focus by the Department of the Air Force on advancing capabilities in this critical intelligence domain. Historically, major defense R&D programs of this magnitude often span several years and involve substantial funding to achieve breakthroughs in complex technological areas like advanced signal processing and exploitation.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as the AXES II award, revolve around cost control and contractor efficiency. While the fixed fee provides an incentive for the contractor to manage costs, the government bears the risk of actual costs exceeding estimates. If the research proves more complex or expensive than initially anticipated, the total contract cost could escalate significantly. Effective oversight is paramount to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep that could inflate expenses without commensurate value. Contractor performance and adherence to technical milestones are also critical risk areas that require diligent monitoring.

How will the success of this R&D contract impact future Air Force intelligence capabilities?

The success of the AXES II contract is expected to significantly enhance the Air Force's capabilities in exploiting electronic intelligence (ELINT) signals. Advanced ELINT exploitation is crucial for understanding adversary capabilities, intentions, and operational activities. Improvements in this area can lead to better situational awareness, more effective targeting, and enhanced electronic warfare capabilities. If the R&D yields breakthroughs, it could provide the Air Force with a critical technological advantage, improving intelligence gathering accuracy and timeliness, thereby supporting a wide range of operational missions and strategic decision-making.

What is the typical duration and funding profile for similar large-scale defense R&D contracts?

Large-scale defense Research and Development (R&D) contracts, particularly those involving advanced technologies like electronic intelligence, typically have durations ranging from 3 to 7 years, with funding profiles that can vary significantly based on research phases and milestones. The AXES II contract's duration of approximately 1888 days (around 5.17 years) falls within this typical range. Funding is often allocated incrementally, tied to the achievement of specific research objectives, prototypes, or demonstrations. The total contract value of $546.5 million is substantial, reflecting the complexity and long-term commitment required for cutting-edge defense R&D, aligning with patterns seen in other major defense technology development programs.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875020S7015

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

Financial Breakdown

Contract Ceiling: $8,148,708

Exercised Options: $8,148,708

Current Obligation: $5,465,000

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $86,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline