DoD awards L3Harris Technologies $1.18B for Space Surveillance and Integrated Capabilities Maintenance through 2028
Contract Overview
Contract Amount: $1,178,383,890 ($1.2B)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-02-25
End Date: 2028-01-31
Contract Duration: 2,897 days
Daily Burn Rate: $406.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: AWARD OF MAINTENANCE OF SPACE SURVEILLENCE AND INTEGRATED CAPABILITIES CONTRACT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80925
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $1.18 billion to L3HARRIS TECHNOLOGIES, INC. for work described as: AWARD OF MAINTENANCE OF SPACE SURVEILLENCE AND INTEGRATED CAPABILITIES CONTRACT Key points: 1. Contract value represents significant, long-term investment in critical space domain awareness capabilities. 2. Full and open competition suggests a potentially competitive bidding process for this substantial award. 3. Cost Plus Incentive Fee (CPIF) contract type introduces performance-based incentives for contractor efficiency. 4. The contract duration of nearly 8 years indicates a sustained need for these specialized services. 5. Awarded by the Department of the Air Force, highlighting its role in national security space operations. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the substantial award amount for maintaining complex space surveillance systems suggests a significant investment. The CPIF contract type allows for adjustments based on performance, which can lead to better value if incentives are well-structured. Further analysis would require comparing the scope of services and pricing against similar large-scale defense maintenance contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for ensuring a competitive environment and potentially achieving better pricing. The presence of two bidders suggests a degree of competition, though the specific details of the bidding process and the number of proposals received would provide a clearer picture of the competitive intensity.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that drives down costs and encourages innovation, leading to more efficient use of public funds.
Public Impact
The Department of the Air Force benefits from sustained maintenance of vital space surveillance infrastructure. Ensures the continued operation and effectiveness of capabilities crucial for monitoring space objects and potential threats. Supports national security interests by maintaining situational awareness in the space domain. The contract likely supports a workforce of specialized engineers and technicians, contributing to high-skilled employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met or are poorly defined.
- Long-term nature of the contract could lead to vendor lock-in if not managed carefully.
- Complexity of space surveillance systems may present unforeseen maintenance challenges and associated costs.
Positive Signals
- Awarded through full and open competition, suggesting a robust and potentially cost-effective procurement process.
- The CPIF structure incentivizes contractor performance, potentially leading to greater efficiency and cost savings.
- The sustained investment indicates a commitment to maintaining critical national security capabilities.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on engineering services for critical national security infrastructure. The market for space domain awareness and surveillance is highly specialized, with a limited number of prime contractors possessing the requisite expertise and security clearances. Spending in this area is driven by geopolitical considerations and the increasing importance of space assets.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of space surveillance maintenance, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. The Cost Plus Incentive Fee structure implies performance monitoring to ensure targets are met. Inspector General investigations could be initiated if fraud, waste, or abuse is suspected. Transparency would be enhanced by public reporting of performance and cost data, though specific details may be classified.
Related Government Programs
- Space Surveillance Network Operations
- Satellite Operations and Maintenance
- Missile Defense Systems Support
- Advanced Technology Development (Space)
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- CPIF contract type requires careful monitoring to manage costs and ensure value.
- Complexity of space surveillance systems presents inherent maintenance challenges.
Tags
defense, department-of-defense, department-of-the-air-force, space-surveillance, integrated-capabilities, maintenance, definitive-contract, full-and-open-competition, cost-plus-incentive-fee, engineering-services, l3harris-technologies, colorado
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.18 billion to L3HARRIS TECHNOLOGIES, INC.. AWARD OF MAINTENANCE OF SPACE SURVEILLENCE AND INTEGRATED CAPABILITIES CONTRACT
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 $1.18 billion.
What is the period of performance?
Start: 2020-02-25. End: 2028-01-31.
What is the historical spending trend for space surveillance and integrated capabilities maintenance by the Department of the Air Force?
Analyzing historical spending requires access to detailed budget data for specific programs related to space surveillance and integrated capabilities maintenance. Typically, such critical infrastructure requires consistent, long-term funding. Fluctuations in spending could be influenced by technological upgrades, geopolitical events, or shifts in strategic priorities. Without specific historical contract data or program budget allocations, it's difficult to provide precise trends. However, the increasing reliance on space assets for military and civilian purposes suggests a general upward trend or sustained high levels of investment in maintaining these capabilities over the past decade.
How does the per-unit cost of maintaining space surveillance capabilities compare to industry benchmarks?
Determining a precise 'per-unit cost' for maintaining complex space surveillance systems is exceptionally difficult due to the multifaceted nature of the services provided and the lack of standardized units. Unlike mass-produced goods, these systems involve highly specialized hardware, software, and expert personnel. Benchmarking would require a detailed breakdown of costs (e.g., labor, parts, software updates, facility maintenance) and a clear definition of what constitutes a 'unit' of maintenance (e.g., per sensor hour, per satellite tracked, per system diagnostic). Comparisons would likely be made against other large, complex defense system maintenance contracts, where costs are often in the millions or billions over the contract's life, rather than against commercial industry benchmarks.
What are the key performance indicators (KPIs) used in this Cost Plus Incentive Fee (CPIF) contract, and how are they measured?
The specific Key Performance Indicators (KPIs) for this L3Harris Technologies contract are not publicly detailed in the provided data. However, for a CPIF contract related to space surveillance and integrated capabilities, typical KPIs could include metrics such as system uptime/availability, accuracy of object tracking, timeliness of data delivery, response time to anomalies, and successful execution of maintenance procedures. Measurement methods would likely involve automated system logs, performance reports submitted by the contractor, and independent government verification. The incentive fee structure would be tied to achieving or exceeding predefined targets for these KPIs, rewarding the contractor for superior performance and potentially penalizing underperformance.
What is L3Harris Technologies' track record with similar large-scale defense maintenance contracts, particularly in space systems?
L3Harris Technologies has a significant track record in defense contracting, including work on space systems, electronic warfare, communications, and intelligence, surveillance, and reconnaissance (ISR). The company has been involved in numerous large-scale government contracts, often serving as a prime contractor. Their experience likely includes managing complex maintenance, sustainment, and upgrade programs for critical defense assets. While specific details on past performance for space surveillance maintenance contracts of this exact scope are not provided, L3Harris's overall profile suggests they possess the technical expertise, financial stability, and program management capabilities required for such an undertaking. Past performance evaluations by the government would be a key factor in their selection for this award.
What are the potential risks associated with the long duration (nearly 8 years) of this contract?
The long duration of this contract presents several potential risks. Firstly, technological obsolescence is a significant concern; space surveillance technology evolves rapidly, and an 8-year contract might lock the government into older systems if not managed with foresight for upgrades and modernization. Secondly, cost escalation is a risk, especially with CPIF contracts, as unforeseen issues or inflation could drive costs higher than initially projected over such an extended period. Thirdly, contractor performance could degrade over time, or the contractor's strategic focus might shift, potentially impacting the quality or timeliness of services. Finally, the government's requirements might change significantly over 8 years, necessitating contract modifications that could be costly or complex to negotiate.
How does this contract contribute to the Department of Defense's overall strategy for space domain awareness?
This contract is crucial for the Department of Defense's (DoD) strategy for space domain awareness (SDA) by ensuring the continued operational readiness and effectiveness of essential space surveillance and tracking infrastructure. SDA is a priority for the DoD, enabling the monitoring of objects in orbit, identification of potential threats, and protection of U.S. and allied space assets. Maintaining and integrating these capabilities ensures the timely and accurate data necessary for decision-making in a contested space environment. This sustained investment signifies the DoD's commitment to maintaining a robust presence and understanding in space, which is fundamental to national security.
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
Solicitation ID: FA882319R0005
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 4450 FOUNTAIN BLVD, COLORADO SPRINGS, CO, 80916
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,635,377,958
Exercised Options: $1,443,258,473
Current Obligation: $1,178,383,890
Actual Outlays: $74,063,080
Subaward Activity
Number of Subawards: 551
Total Subaward Amount: $128,636,964
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-02-25
Current End Date: 2028-01-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2026-01-15
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