DoD Awards L3Harris $637M Combat Mission Systems Support Contract Amidst Full and Open Competition
Contract Overview
Contract Amount: $636,948,682 ($636.9M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-01-24
End Date: 2026-06-30
Contract Duration: 2,714 days
Daily Burn Rate: $234.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COMBAT MISSION SYSTEMS SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80910
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $636.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: COMBAT MISSION SYSTEMS SUPPORT Key points: 1. Significant contract value of $637 million for essential combat mission systems support. 2. L3Harris Technologies, Inc. is the sole awardee under a full and open competition. 3. Contract duration extends to June 2026, indicating a long-term need. 4. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: good
The contract value of $637 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale defense support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the single award to L3Harris Technologies, Inc. warrants scrutiny to ensure competitive pressures were maintained throughout.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense support services. The competitive award process aims to ensure value for money, but ongoing oversight is crucial to manage costs effectively.
Public Impact
Ensures continued operational readiness for critical combat mission systems. Supports advanced technological capabilities within the Air Force. Potential for job creation and economic activity related to defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure requires careful monitoring to control expenses.
- Sole awardee under full and open competition may limit future competitive opportunities.
- Contract duration extends over several years, necessitating ongoing performance evaluation.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Supports critical national defense infrastructure.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting combat mission systems for the Department of the Air Force. Spending in this area is critical for maintaining technological superiority and operational readiness in defense.
Small Business Impact
The data indicates this is a large contract awarded to L3Harris Technologies, Inc., a major defense contractor. There is no explicit mention of small business participation, which should be reviewed to ensure opportunities are provided where feasible.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the contract's value and duration, robust performance metrics and regular audits are essential to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Long contract duration (through June 2026).
- Sole awardee for a critical support function.
- Lack of explicit small business participation noted.
Tags
engineering-services, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $636.9 million to L3HARRIS TECHNOLOGIES, INC.. COMBAT MISSION SYSTEMS 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 $636.9 million.
What is the period of performance?
Start: 2019-01-24. End: 2026-06-30.
What specific combat mission systems are covered under this support contract, and how critical are they to current Air Force operations?
The contract covers support for 'COMBAT MISSION SYSTEMS'. While specific systems are not detailed, their designation as 'combat mission systems' implies they are integral to the Air Force's ability to conduct offensive and defensive operations. Their criticality is high, as failure or degradation could significantly impact mission effectiveness and national security.
What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this significant expenditure?
The CPIF structure incentivizes the contractor to control costs while meeting performance targets. However, risks include potential for cost overruns if targets are not well-defined or if unforeseen issues arise. The government must diligently monitor expenditures and contractor performance to ensure the incentive structure effectively manages costs and achieves desired outcomes.
How does the Air Force ensure continued competition and prevent vendor lock-in with a sole awardee for such a critical long-term support contract?
While awarded under full and open competition, the sole award to L3Harris for a long duration raises concerns about future competition. The Air Force should actively plan for future contract actions, potentially breaking down services or encouraging new entrants through market research and phased transitions to maintain competitive pressure and foster innovation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 8955 DRENNAN RD, COLORADO SPRINGS, CO, 80925
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: $648,010,478
Exercised Options: $648,010,451
Current Obligation: $636,948,682
Actual Outlays: $38,116,789
Subaward Activity
Number of Subawards: 266
Total Subaward Amount: $77,971,539
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-24
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-16
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