DoD's $46.7M Big Top System Development contract awarded to L3Harris Technologies for R&D
Contract Overview
Contract Amount: $46,692,256 ($46.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2023-12-31
Contract Duration: 1,920 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: BIG TOP SYSTEM DEVELOPMENT AND SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80925
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $46.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: BIG TOP SYSTEM DEVELOPMENT AND SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of 1920 days (approximately 5.2 years) indicates a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to research in physical, engineering, and life sciences. 5. The contract's value of over $46 million suggests a significant investment in advanced technological development. 6. The award was made by the Department of the Air Force, a major component of the DoD. 7. The contractor, L3Harris Technologies, is a well-established defense contractor.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Incentive Fee (CPIF) contract is challenging without detailed cost breakdowns and performance metrics. CPIF contracts aim to balance contractor incentives with cost control, but their effectiveness relies heavily on the specific incentive structure and oversight. Compared to similar R&D contracts of this scale, the pricing is likely within a reasonable range, assuming the research objectives are complex and require significant resources. However, the 'cost plus' nature means the final cost is not fixed, introducing potential for cost overruns if not managed diligently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of only one awardee (no=1) does not necessarily imply a lack of competition during the bidding phase; it could mean that L3Harris Technologies was the most advantageous offer. A full and open competition generally promotes price discovery and allows the government to select the best value proposition.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider range of innovative solutions being considered, ultimately aiming for better use of public funds.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advanced research and development outcomes. The services delivered are focused on research and development in physical, engineering, and life sciences, likely contributing to future defense capabilities. The geographic impact is primarily within Colorado, where the contractor is located, but the technological advancements could have national security implications. Workforce implications include employment opportunities for researchers, engineers, and support staff at L3Harris Technologies and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to higher final costs than fixed-price contracts if cost controls are not rigorously enforced.
- The long duration of the contract increases the risk of scope creep or evolving requirements that may not be adequately addressed by the initial incentive structure.
- Lack of specific performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the R&D effort.
- Reliance on a single contractor for a significant R&D effort could limit the exploration of alternative technological paths.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
- The contractor, L3Harris Technologies, is a reputable and experienced defense technology company with a track record in R&D.
- The contract's focus on research and development aligns with the DoD's need for technological advancement and future capability.
- The use of an incentive fee structure, if well-designed, can motivate the contractor to achieve specific performance goals efficiently.
Sector Analysis
The contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant investment. The market size for defense R&D is substantial, with agencies like the DoD being major funders. This contract represents a specific investment within that broader landscape, aiming to advance technologies relevant to national security. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD or other federal agencies for similar scientific endeavors.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb=false) and there is no specific mention of small business subcontracting goals (st=CO, which likely refers to Colorado, not subcontracting type). Therefore, the direct impact on small businesses through set-asides is likely minimal. However, L3Harris Technologies, as a large prime contractor, may engage small businesses as subcontractors for specialized services or components, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Incentive Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure cost control and achievement of research objectives. Transparency is typically managed through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, as with most federal contracts.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Science and Technology Investments
- Advanced Technology Development Contracts
- Research and Development in Physical Sciences
- Engineering Research Services
- Life Sciences Research Contracts
Risk Flags
- Cost Overrun Risk (CPIF contract type)
- Technological Obsolescence Risk (long duration R&D)
- Scope Creep Risk (long duration R&D)
- Performance Measurement Difficulty (complex R&D)
Tags
department-of-defense, department-of-the-air-force, l3harris-technologies, research-and-development, physical-engineering-life-sciences, cost-plus-incentive-fee, definitive-contract, full-and-open-competition, long-term-contract, colorado, defense-technology, system-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 million to L3HARRIS TECHNOLOGIES, INC.. BIG TOP SYSTEM DEVELOPMENT AND SUPPORT
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 $46.7 million.
What is the period of performance?
Start: 2018-09-28. End: 2023-12-31.
What is the specific nature of the 'BIG TOP SYSTEM DEVELOPMENT AND SUPPORT' research and development?
The provided data does not specify the exact nature of the 'BIG TOP SYSTEM DEVELOPMENT AND SUPPORT'. The NAICS code 541715 indicates research and development in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. Given the contractor (L3Harris Technologies) and the awarding agency (Department of the Air Force), it is highly probable that this system relates to advanced defense technologies, potentially involving areas like command and control, sensor systems, electronic warfare, or communication systems. The 'support' aspect suggests ongoing maintenance, upgrades, or integration activities related to the developed system. Further details would require access to the contract's statement of work or related documentation.
How does the Cost Plus Incentive Fee (CPIF) structure typically work, and what are its implications for this contract?
A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and also receives an incentive fee based on meeting or exceeding certain performance targets. These targets are often related to cost, schedule, or technical performance. The contract establishes a target cost, a target fee, and a fee-sharing arrangement (e.g., the government and contractor share in cost savings or overruns beyond a certain range). For the 'BIG TOP SYSTEM DEVELOPMENT AND SUPPORT' contract, this means L3Harris Technologies is incentivized to perform efficiently and effectively within the defined R&D scope. However, it also means the final cost is not fixed and depends on actual costs incurred and performance achieved against the incentive criteria. Rigorous oversight is essential to ensure the incentive structure effectively drives desired outcomes without leading to excessive costs.
What is L3Harris Technologies' track record with similar R&D contracts for the Department of Defense?
L3Harris Technologies is a major defense contractor with extensive experience in research, development, and systems integration for the Department of Defense (DoD) and its various branches, including the Air Force. While specific details on their track record for 'BIG TOP SYSTEM DEVELOPMENT AND SUPPORT' are not provided, the company has a history of engaging in complex R&D projects across a wide range of defense applications, such as communications, electronic warfare, space systems, and avionics. Their performance on similar large-scale, long-duration R&D contracts would typically be evaluated based on factors like meeting technical milestones, adhering to budgets (within the CPIF framework), and delivering functional systems. Government contract databases and performance reports (like Contractor Performance Assessment Reporting System - CPARS) would offer more granular insights into their past performance.
How does the $46.7 million contract value compare to typical R&D spending in the physical and engineering sciences by the Air Force?
The $46.7 million contract value for the 'BIG TOP SYSTEM DEVELOPMENT AND SUPPORT' is a significant investment, but it falls within the typical range for large-scale, multi-year research and development projects undertaken by the U.S. Air Force. The Air Force, like other branches of the DoD, invests billions of dollars annually in R&D to maintain technological superiority. Contracts in the tens of millions are common for developing advanced systems, prototypes, and conducting complex scientific research. To provide a precise comparison, one would need to analyze the Air Force's historical R&D budget allocations across various scientific and engineering disciplines (e.g., aerospace, electronics, materials science) and identify comparable contracts in terms of scope, duration, and technological focus. This contract represents a substantial, but not extraordinary, allocation for a specific R&D initiative.
What are the potential risks associated with a 1920-day (over 5 years) R&D contract of this magnitude?
A contract duration of 1920 days (approximately 5.2 years) for an R&D project of this magnitude presents several potential risks. Firstly, technological obsolescence is a significant concern; the technology landscape can change rapidly over five years, potentially making the developed system outdated before or shortly after completion. Secondly, scope creep is a common risk in long-term R&D, where requirements may evolve or expand beyond the original intent, leading to cost overruns and schedule delays. Thirdly, maintaining consistent program oversight and contractor engagement over such an extended period can be challenging. Finally, the CPIF structure, while incentivizing, also carries risks related to cost control and the difficulty of accurately predicting and measuring performance outcomes in cutting-edge research environments. Effective risk mitigation strategies, including regular reviews and adaptive management, are crucial.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA881918R0015
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1330 INVERNESS DR, COLORADO SPRINGS, CO, 80910
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,942,894
Exercised Options: $47,742,257
Current Obligation: $46,692,256
Actual Outlays: $2,445,211
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $3,679,230
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-09-28
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2025-02-05
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