DoD Awards L3Harris $51.3M for Missile Defense Sustainment Services, Extending Contract to 2026

Contract Overview

Contract Amount: $51,280,858 ($51.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-09-15

End Date: 2026-09-14

Contract Duration: 729 days

Daily Burn Rate: $70.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: OPERATION AND SUSTAINMENT AND MISSION EXECUTION SERVICES

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74115

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $51.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: OPERATION AND SUSTAINMENT AND MISSION EXECUTION SERVICES Key points: 1. Contract awarded to a single, established provider for critical missile defense operations. 2. Significant contract value suggests a complex and ongoing need for specialized engineering services. 3. Potential for cost overruns exists given the Cost Plus Award Fee structure. 4. The Engineering Services sector is vital for national security, with high demand for specialized expertise.

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) structure allows for contractor incentives but can lead to higher costs than fixed-price contracts. Benchmarking against similar CPAF contracts for complex engineering services is difficult without more granular data, but the $51.3M value over two years suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and competition, potentially leading to higher costs for taxpayers. The justification for sole-source is not provided but likely relates to specialized capabilities or existing system integration.

Taxpayer Impact: The lack of competition may result in higher taxpayer costs compared to a fully competed contract. The specific impact is unknown without a competitive benchmark.

Public Impact

Ensures continued operation and sustainment of critical missile defense systems. Supports national security by maintaining readiness of advanced defense capabilities. Provides specialized engineering expertise essential for complex defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Award Fee structure can lead to higher costs.
Contract duration of two years may not reflect long-term needs.

Positive Signals

Ensures continuity of critical missile defense operations.
Leverages established expertise of L3Harris Technologies.
Supports national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this sector is driven by national security needs and technological advancements. Benchmarks for similar large-scale defense engineering contracts are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large defense contractor. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors. Future opportunities for small businesses may exist in supporting roles or through separate, smaller contracts.

Oversight & Accountability

The Department of Defense, specifically the Missile Defense Agency, is responsible for oversight. The Cost Plus Award Fee structure requires careful monitoring of performance and costs to ensure value for money and prevent contractor overcharging. Accountability is tied to meeting performance metrics and award fee criteria.

Related Government Programs

Engineering Services
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Lack of competition
Cost Plus Award Fee structure
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. OPERATION AND SUSTAINMENT AND MISSION EXECUTION SERVICES

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 $51.3 million.

What is the period of performance?

Start: 2024-09-15. End: 2026-09-14.

What is the specific justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, critical system integration, or lack of viable alternatives. The agency should have conducted a price analysis, potentially using historical data or market research, to ensure the negotiated price was fair and reasonable. Without this documentation, it's difficult to assess the rigor of the price discovery process.

How will the performance metrics and award fee criteria be structured to incentivize efficiency and cost control under the CPAF contract?

Effective CPAF contracts clearly define measurable performance objectives related to technical execution, schedule adherence, and cost management. The award fee structure should reward contractors for exceeding baseline expectations while penalizing underperformance. Regular performance reviews and transparent communication are crucial to ensure the fee structure drives desired outcomes and prevents unnecessary cost escalation.

What is the long-term strategy for missile defense sustainment, and how does this contract align with future needs and potential competition?

This contract covers a two-year period, suggesting it addresses immediate operational needs. A comprehensive long-term strategy should outline future sustainment requirements, technology roadmaps, and plans for potential future competition or platform evolution. Understanding this broader strategy is key to assessing the overall value and effectiveness of this specific award in the context of evolving defense priorities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ085521R0001

Pricing Type: COST PLUS AWARD FEE (R)

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: $70,183,532

Exercised Options: $70,183,532

Current Obligation: $51,280,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085521D0001

IDV Type: IDC

Timeline