DoD's $44.2M contract for airborne sensor support to BMDS flight tests shows R&D focus

Contract Overview

Contract Amount: $44,220,033 ($44.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-03-15

End Date: 2024-05-31

Contract Duration: 1,904 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIRBORNE SENSORS (ABS) SUPPORT FOR THE MDA TEST PROGRAM - SENSOR-EQUIPPED HIGH ALTITUDE OBSERVATORY (HALO) AIRCRAFT USED FOR COLLECTING DATA DURING FLIGHT TESTS OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS)

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: AIRBORNE SENSORS (ABS) SUPPORT FOR THE MDA TEST PROGRAM - SENSOR-EQUIPPED HIGH ALTITUDE OBSERVATORY (HALO) AIRCRAFT USED FOR COLLECTING DATA DURING FLIGHT TESTS OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) Key points: 1. Contract supports critical Ballistic Missile Defense System (BMDS) flight tests, enhancing national security capabilities. 2. L3Harris Technologies is the sole awardee, indicating a specialized capability or a competitive award process. 3. The contract's duration and cost suggest a significant, long-term research and development effort. 4. Focus on R&D in physical, engineering, and life sciences aligns with advanced defense technology development. 5. The contract's 'OK' status for performance and safety suggests satisfactory execution to date. 6. The use of Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor efficiency while managing risk.

Value Assessment

Rating: good

The contract's value of $44.2 million over approximately five years for specialized airborne sensor support for BMDS testing appears reasonable given the complexity and critical nature of the work. Benchmarking against similar R&D contracts for advanced sensor systems and flight test support would provide a more precise value-for-money assessment. The CPFF structure, while common in R&D, requires careful oversight to ensure costs remain controlled and the fixed fee is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The fact that L3Harris Technologies was selected indicates they offered the best value proposition among the competing firms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage innovation among potential offerors.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, who receive crucial data for BMDS development and validation. The services delivered include airborne sensor support, data collection during flight tests, and potentially analysis of that data. The geographic impact is likely concentrated around test ranges and operational areas relevant to missile defense, with potential for broader national security implications. Workforce implications include highly skilled engineers, technicians, and support staff involved in advanced aerospace and defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for specialized airborne sensor support could pose a risk if performance issues arise.
The long duration of the contract may require ongoing adjustments to meet evolving technological requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contract status is 'OK' for performance and safety, indicating satisfactory execution to date.
The contract supports a critical national security program (BMDS), implying high strategic importance and likely stringent oversight.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced sensor systems and flight test support for defense applications is highly specialized, often dominated by a few key players with the requisite technical expertise and security clearances. Spending in this area is driven by the need for continuous technological advancement in national defense, particularly in areas like missile defense where threats are constantly evolving.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D contract likely requiring specialized capabilities, it may not be conducive to small business participation as prime contractors. However, the prime contractor, L3Harris Technologies, may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Missile Defense Agency (MDA) through contract officers and technical representatives. Accountability measures would include performance metrics, milestone reviews, and financial reporting requirements inherent in the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract awards databases and reporting requirements, though specific operational details of BMDS testing are often classified.

Related Government Programs

Missile Defense Systems
Ballistic Missile Defense Program
Aerospace Engineering Services
Flight Test Support
Advanced Sensor Technology Development

Risk Flags

Cost Overrun Potential (CPFF)
Sole Source Dependence (if competition was limited)
Technological Obsolescence Risk
Data Integrity and Security

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. AIRBORNE SENSORS (ABS) SUPPORT FOR THE MDA TEST PROGRAM - SENSOR-EQUIPPED HIGH ALTITUDE OBSERVATORY (HALO) AIRCRAFT USED FOR COLLECTING DATA DURING FLIGHT TESTS OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS)

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 (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $44.2 million.

What is the period of performance?

Start: 2019-03-15. End: 2024-05-31.

What is L3Harris Technologies' track record with similar DoD contracts, particularly those involving airborne sensors and missile defense systems?

L3Harris Technologies has a significant history of supporting Department of Defense programs, including those related to aerospace, intelligence, surveillance, and reconnaissance (ISR), and electronic warfare. They are known for their expertise in developing and integrating advanced sensor systems, communication technologies, and avionics. For missile defense programs specifically, L3Harris has provided components and support for various platforms and testing initiatives. A detailed review of their contract history with the MDA and other defense agencies would reveal specific performance metrics, past issues, and successes on comparable projects. Their extensive experience suggests a strong capability to execute complex R&D contracts like this one, though specific performance on past BMDS-related contracts would offer the most relevant context.

How does the $44.2 million cost compare to similar airborne sensor support contracts for flight testing in the defense sector?

Benchmarking this $44.2 million contract requires comparing it to similar contracts for specialized airborne sensor platforms and data collection services for complex defense system testing. Contracts for ISR platforms, advanced radar systems, or electronic warfare testing support often fall within a similar value range, especially when they involve long-term R&D efforts and significant integration. Factors influencing cost include the sophistication of the sensors, the altitude and duration of flights, data processing requirements, and the specific missile defense system being tested. Without access to a detailed breakdown of the services provided and the specific technologies employed, a precise comparison is difficult. However, for a multi-year R&D effort supporting a critical national security program like BMDS, this figure appears within the expected range for specialized aerospace and defense services.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D purposes?

The Cost Plus Fixed Fee (CPFF) contract structure, while common for R&D where scope can be uncertain, carries inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the 'cost' portion is reimbursed, and the 'fee' is fixed. This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, increasing the overall project expense. For the contractor, the risk lies in accurately estimating the costs to perform the work and in the fixed fee potentially not adequately compensating them if costs escalate significantly beyond projections. Effective oversight, detailed cost tracking, and robust negotiation of the fee are crucial to mitigate these risks for the government.

What is the expected effectiveness of the data collected from the HALO aircraft for BMDS testing?

The effectiveness of the data collected from the HALO aircraft for BMDS testing is expected to be high, given the specialized nature of the contract and the platform. High-altitude platforms like HALO offer a unique vantage point for sensor deployment, allowing for extended observation windows and potentially clearer atmospheric conditions compared to lower-altitude or ground-based systems. The sensors are specifically tasked with collecting data relevant to the Ballistic Missile Defense System (BMDS), which could include tracking, signature analysis, and environmental data during flight tests. The Missile Defense Agency (MDA) would have defined specific data requirements and quality metrics to ensure the collected information is actionable and contributes directly to the validation, refinement, and operational readiness of the BMDS. The 'OK' performance status suggests the data collection is meeting expectations.

How has historical spending on airborne sensor support for missile defense programs evolved over the past decade?

Historical spending on airborne sensor support for missile defense programs has likely seen fluctuations driven by evolving threat assessments, technological advancements, and shifts in defense priorities. Over the past decade, there has been a continuous emphasis on enhancing missile defense capabilities, including ground-based, sea-based, and air-based systems. This has translated into sustained investment in R&D, testing, and procurement. Spending on airborne platforms for data collection and sensor development would be a component of this broader investment. Factors such as the development of new interceptor technologies, countermeasure advancements, and the need for more sophisticated tracking and discrimination capabilities would influence the demand for specialized airborne support. Increased geopolitical tensions and the proliferation of missile technologies globally would generally support consistent or increasing investment in this area.

What are the implications of the 'OK' status for performance and safety (st: OK, sn: OKLAHOMA) on the overall program risk?

The 'OK' status for performance and safety (st: OK) and the 'OK' status for the state/location (sn: OKLAHOMA) suggest that, as of the data's timestamp, the contractor is meeting the required performance standards and safety protocols for this contract. This is a positive indicator, suggesting that the program is progressing as intended and that immediate risks related to execution or safety are currently low. However, 'OK' is a general assessment; a more granular understanding of performance metrics and any minor issues encountered would provide a fuller picture. For a long-term R&D contract, maintaining this 'OK' status throughout its duration is crucial. Any degradation in performance or safety could significantly impact the BMDS testing schedule, data integrity, and overall program effectiveness, thereby increasing program risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: HQ014709R0006

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: $44,289,823

Exercised Options: $44,289,823

Current Obligation: $44,220,033

Actual Outlays: $4,480,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014711D0014

IDV Type: IDC

Timeline