DoD's $22M R&D Contract with L3Harris: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $22,020,013 ($22.0M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2002-07-22
End Date: 2008-09-30
Contract Duration: 2,262 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74115
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: Key points: 1. Significant investment in R&D, potentially driving technological advancement. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (2002-2008) may indicate complex or evolving requirements. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract value of $22 million over six years is difficult to assess without specific deliverables and performance metrics. The cost-plus-fixed-fee structure can incentivize cost overruns, especially without robust competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 'NOT COMPETED' status indicates a sole-source award, limiting price discovery and potentially leading to higher costs for taxpayers. The rationale for not competing this significant R&D effort is unclear.
Taxpayer Impact: The lack of competition for a $22 million contract raises concerns about whether the government secured the best possible value, potentially impacting taxpayer funds.
Public Impact
Taxpayers may have paid a premium due to the absence of competitive bidding. Potential for advanced technological breakthroughs in physical, engineering, and life sciences. Contract duration suggests a long-term, potentially critical research project. Oversight is crucial to ensure R&D objectives are met efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
- Long contract duration
Positive Signals
- Focus on critical R&D
- Potential for technological innovation
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is vital for national security and technological advancement, but often involves high risk and long development cycles.
Small Business Impact
The data indicates no small business participation in this contract. This is common for large, complex R&D efforts awarded to prime contractors, but it represents a missed opportunity for small business innovation and growth.
Oversight & Accountability
The 'OK' status for oversight suggests standard monitoring. However, the sole-source nature and cost-plus structure necessitate rigorous oversight to ensure funds are used effectively and objectives are met.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize cost overruns.
- Lack of small business participation.
- Long contract duration may indicate potential for scope creep or evolving requirements.
- Limited transparency on R&D outcomes and effectiveness.
Tags
research-and-development-in-the-physical, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. See the official description on USAspending.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2002-07-22. End: 2008-09-30.
What was the justification for awarding this significant R&D contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. Typically, such awards require a documented justification, such as unique capabilities or urgent needs. Without this, it's difficult to assess the fairness of the pricing, as competitive benchmarking is absent. Robust negotiation and cost analysis would be critical.
How effectively did L3Harris manage costs and deliver on the R&D objectives given the cost-plus-fixed-fee structure and lack of competition?
Assessing effectiveness is challenging without performance reports or final outcomes. Cost-plus-fixed-fee contracts can incentivize contractors to incur costs to achieve a fixed profit, potentially leading to inefficiencies if not tightly managed. The absence of competition means there was no external pressure to optimize spending.
What is the long-term impact of this R&D investment on the Department of Defense's capabilities and technological advantage?
The long-term impact depends entirely on the specific research outcomes and their successful integration into DoD systems. If the R&D led to significant technological advancements or new capabilities, the investment could be highly valuable. However, R&D is inherently uncertain, and not all projects yield immediately applicable results.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 6501 E APACHE ST, TULSA, OK, 74115
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,241,329
Exercised Options: $4,241,329
Current Obligation: $22,020,013
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-07-22
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2023-03-29
More Contracts from L3harris Technologies Integrated Systems L.P.
- BIG Safari — $660.1M (Department of Defense)
- BIG Safari — $579.0M (Department of Defense)
- BIG Safari — $371.6M (Department of Defense)
- Java MAN III — $358.6M (Department of Defense)
- Acat III BIG Safari — $341.4M (Department of Defense)
View all L3harris Technologies Integrated Systems L.P. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)