L3Harris Technologies awarded $54.6M for MUOS Waveform engineering changes, impacting wireless communications

Contract Overview

Contract Amount: $54,575,970 ($54.6M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-10

End Date: 2026-08-31

Contract Duration: 1,574 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING CHANGE PROPOSAL TASK ORDER FOR MUOS WAVEFORM

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14610

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $54.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING CHANGE PROPOSAL TASK ORDER FOR MUOS WAVEFORM Key points: 1. Contract value represents a significant investment in advanced military communications technology. 2. The award is for engineering changes, suggesting ongoing development and adaptation of existing systems. 3. Competition dynamics for this type of specialized engineering work warrant further examination. 4. Performance will be critical given the strategic importance of the MUOS program. 5. The contract falls within the broader defense sector's focus on secure and resilient communication networks. 6. The duration of the contract indicates a long-term commitment to system evolution.

Value Assessment

Rating: good

The contract value of $54.6 million for engineering changes to the MUOS waveform appears reasonable given the specialized nature of the work and the strategic importance of the Mobile User Objective System. Benchmarking against similar advanced communications engineering contracts is challenging due to the unique capabilities of MUOS. However, the cost-plus-fixed-fee structure suggests that while the contractor is incentivized to control costs, there is also a degree of risk shared with the government. Further analysis would require detailed cost breakdowns and comparison to the total program cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should theoretically lead to fair pricing. The government's decision to use full and open competition implies confidence that the market could provide suitable solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are U.S. military personnel who rely on secure and reliable satellite communications. The services delivered involve critical engineering changes to enhance the MUOS waveform's functionality and performance. The geographic impact is global, supporting deployed forces wherever they operate. Workforce implications include specialized engineering roles within L3Harris Technologies and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not closely monitored.
Dependence on a single contractor for critical engineering changes could pose a risk if performance falters.
The long-term nature of the contract requires sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract supports a vital national security program (MUOS), indicating strategic importance and likely high standards.
L3Harris Technologies is a well-established defense contractor with a track record in complex systems.

Sector Analysis

This contract falls within the defense electronics and communications sector, a significant segment of the broader aerospace and defense industry. The market for advanced military communication systems is characterized by high barriers to entry due to technological complexity and stringent security requirements. Spending in this area is driven by the need for secure, resilient, and globally accessible communication capabilities for military operations. Comparable spending benchmarks would likely be found within other major defense acquisition programs focused on satellite communications and network modernization.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract awarded to L3Harris Technologies, it is possible that small businesses could be involved as subcontractors. However, without further information on subcontracting plans or goals, the direct impact on the small business ecosystem remains unclear. Analysis of subcontracting reports would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement, milestones, and payment schedules. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mobile User Objective System (MUOS)
Military Satellite Communications
Defense Communications Systems
Wireless Communications Equipment Manufacturing
Special Operations Forces Support

Risk Flags

Cost-Plus-Fixed-Fee contract type requires careful monitoring to manage potential cost growth.
Long contract duration necessitates sustained oversight to ensure performance and value.
Dependence on specialized engineering changes highlights the need for robust technical expertise from the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.6 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING CHANGE PROPOSAL TASK ORDER FOR MUOS WAVEFORM

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $54.6 million.

What is the period of performance?

Start: 2022-05-10. End: 2026-08-31.

What is L3Harris Technologies' track record with the MUOS program or similar complex communication systems?

L3Harris Technologies, a major defense contractor, has a significant history of developing and supplying advanced communication systems for military and government applications. While specific details on their involvement with the MUOS program prior to this award are not provided in the summary data, the company is known for its expertise in areas such as satellite communications, electronic warfare, and secure networking. Their broader track record includes numerous large-scale defense contracts, suggesting they possess the technical capabilities and program management experience necessary for complex engineering tasks like waveform development and modification. A deeper dive into their past performance on similar projects, including any past performance reviews or award fees, would provide a more comprehensive assessment of their suitability for this specific task order.

How does the $54.6 million cost compare to the overall budget or previous investments in the MUOS waveform?

The provided data indicates a contract award of $54.6 million for engineering change proposals related to the MUOS waveform. To assess value, this figure needs to be contextualized within the broader MUOS program's lifecycle costs and previous investments. The MUOS program itself is a multi-billion dollar initiative involving satellite development, ground infrastructure, and user terminals. This $54.6 million represents a specific task order for ongoing engineering modifications, not the total program cost. Without access to the total program budget, historical spending on waveform development, or the specific scope of work covered by this task order relative to the entire waveform lifecycle, a direct comparison of value is difficult. However, it is likely a component of a larger, sustained investment in maintaining and evolving the MUOS system's capabilities over its operational life.

What are the primary risks associated with this specific engineering change task order?

The primary risks associated with this engineering change task order include technical risks related to the complexity of modifying an advanced waveform, potential integration challenges with existing MUOS infrastructure, and schedule risks if unforeseen technical hurdles arise. Given the cost-plus-fixed-fee contract type, there's also a financial risk of cost growth if the scope of work expands or if efficiencies are not realized, although the fixed fee component provides some cost control. Performance risk is also present, as the successful implementation of these engineering changes is critical for the continued operational effectiveness of the MUOS system. Finally, there's a potential risk associated with the long-term sustainment and obsolescence management of the modified waveform.

What is the expected impact of these engineering changes on the MUOS system's capabilities?

The engineering changes funded by this $54.6 million task order are expected to enhance or adapt the MUOS waveform's capabilities to meet evolving operational requirements and potentially address emerging technological advancements or threats. While the specific nature of the 'engineering changes' is not detailed, they could involve improvements in data throughput, signal security, power efficiency, interoperability with other systems, or resilience against jamming and interference. The MUOS system provides essential secure, single-satellite, near-global communications for mobile warfighters. Therefore, any waveform enhancements are critical for maintaining and improving the effectiveness of these vital communication services, ensuring that deployed forces have reliable access to voice, data, and video communications.

How has spending on similar wireless communications equipment manufacturing contracts evolved over the past five years?

Analyzing spending trends in the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' (NAICS 334220) sector requires access to comprehensive federal procurement data. Generally, spending in this category within the defense sector has been robust, driven by modernization efforts, the need for secure communications, and the integration of new technologies like 5G and advanced satellite systems. Contracts often involve research, development, production, and sustainment of complex electronic systems. Over the past five years, there has been a consistent demand for advanced wireless solutions, particularly those offering enhanced security, bandwidth, and global reach, as exemplified by programs like MUOS. Fluctuations in spending can be influenced by specific program lifecycles, geopolitical events, and shifts in technological priorities.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222217R0008

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610

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: $55,740,578

Exercised Options: $55,740,578

Current Obligation: $54,575,970

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $713,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222217D0021

IDV Type: IDC

Timeline