DoD's $22.3M Airborne Sensors Support Contract Awarded to L3Harris Amidst R&D Spending

Contract Overview

Contract Amount: $22,340,684 ($22.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-09-23

End Date: 2020-09-30

Contract Duration: 373 days

Daily Burn Rate: $59.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: AIRBORNE SENSORS (ABS) SUPPORT - OPERATION AND MAINTENANCE FOR PERIOD 9 (1 OCT 2019 - 30 SEP 2020)

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: AIRBORNE SENSORS (ABS) SUPPORT - OPERATION AND MAINTENANCE FOR PERIOD 9 (1 OCT 2019 - 30 SEP 2020) Key points: 1. Contract value of $22.3M for airborne sensor support and maintenance. 2. Awarded to L3Harris Technologies Integrated Systems L.P. under full and open competition. 3. Focuses on Research and Development in Physical, Engineering, and Life Sciences. 4. Potential risks include reliance on a single vendor for specialized support.

Value Assessment

Rating: fair

The contract value of $22.3M for a one-year period appears reasonable for specialized R&D support. Benchmarking against similar R&D contracts for airborne sensor maintenance is difficult without more specific data on the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though the specific incentive fee structure could influence the final cost.

Taxpayer Impact: Taxpayer funds are utilized for critical R&D support, with competition aiming for cost-effectiveness. The incentive fee structure could lead to savings if performance targets are met.

Public Impact

Supports advanced airborne sensor technology crucial for national security. Investment in R&D contributes to technological advancement in defense. Potential for innovation and improved capabilities in sensor systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of the contract period.
Reliance on specific vendor expertise.
Potential for cost overruns with incentive fee structure.

Positive Signals

Awarded through full and open competition.
Supports critical R&D functions.
Located in Texas, a hub for aerospace and defense.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences related to airborne sensors. Spending in this area is critical for maintaining technological superiority in defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded via a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance against the incentive fee structure and adherence to R&D objectives.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Contract duration is relatively short (one year).
Cost Plus Incentive Fee structure can lead to cost uncertainty.
Specific details of sensor technology and maintenance are not provided.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. AIRBORNE SENSORS (ABS) SUPPORT - OPERATION AND MAINTENANCE FOR PERIOD 9 (1 OCT 2019 - 30 SEP 2020)

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 $22.3 million.

What is the period of performance?

Start: 2019-09-23. End: 2020-09-30.

What is the specific nature of the 'Airborne Sensors' and their operational maintenance requirements that justify this R&D expenditure?

The specific nature of the airborne sensors and their maintenance requirements are not detailed in the provided data. However, given the R&D classification (NAICS 541712), it likely pertains to advanced or experimental sensor systems requiring specialized technical support, calibration, and potentially upgrades to enhance performance or explore new functionalities for defense applications.

How does the 'Cost Plus Incentive Fee' structure mitigate risks associated with R&D projects and ensure value for taxpayer money?

The Cost Plus Incentive Fee (CPIF) structure aims to incentivize the contractor to control costs while achieving performance targets. The government pays the contractor's allowable costs plus a fee that is adjusted based on performance against pre-determined targets. This can mitigate R&D risks by aligning contractor incentives with government objectives, potentially leading to cost savings if targets are met or exceeded.

What is the long-term strategic value of investing in the operation and maintenance of these specific airborne sensors through this contract?

The long-term strategic value lies in maintaining and potentially enhancing critical sensor capabilities for national defense. Continued investment ensures that these systems remain operational and effective, supporting intelligence gathering, surveillance, and reconnaissance missions. Furthermore, the R&D aspect suggests an effort to improve existing technologies or develop new ones, contributing to future military advantage.

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 INCENTIVE FEE (V)

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: $22,647,083

Exercised Options: $22,647,083

Current Obligation: $22,340,684

Actual Outlays: $6,709,828

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