DARPA Awards $43.3M for R&D to L3Harris Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $43,275,770 ($43.3M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-02
End Date: 2018-05-01
Contract Duration: 637 days
Daily Burn Rate: $67.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF - DARPA RESEARCH PROJECT
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $43.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: IGF::OT::IGF - DARPA RESEARCH PROJECT Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. L3Harris Technologies, Inc. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract type is Cost Plus Fixed Fee. 5. The contract duration is 637 days.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. The award amount of $43.3M for a 637-day R&D project requires careful monitoring of expenses against the fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided, making it difficult to assess the full impact on price.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, which has the potential for long-term technological benefits, but the immediate return on investment is uncertain.
Public Impact
Investment in cutting-edge research by DARPA aims to maintain U.S. technological superiority. The project supports innovation in physical, engineering, and life sciences, potentially leading to new defense capabilities. Awarding to a large corporation like L3Harris Technologies may have limited direct impact on smaller businesses in the supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of detailed pricing information makes it hard to assess value.
- R&D projects inherently carry a high degree of uncertainty in outcomes.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense research and development.
- Contract awarded to a reputable defense contractor.
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for national security and technological advancement, with benchmarks varying widely based on project scope and agency.
Small Business Impact
While the contract was awarded to L3Harris Technologies, a large corporation, the extent to which small businesses will be involved as subcontractors is not specified. Further analysis would be needed to determine the small business participation.
Oversight & Accountability
The Department of Defense, through agencies like DARPA and DCMA, is responsible for overseeing this contract. Robust oversight is crucial for managing costs and ensuring the successful completion of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Uncertainty inherent in R&D projects.
- Limited information on price discovery.
- Lack of detail on small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.3 million to L3HARRIS TECHNOLOGIES, INC.. IGF::OT::IGF - DARPA RESEARCH PROJECT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $43.3 million.
What is the period of performance?
Start: 2016-08-02. End: 2018-05-01.
What specific technological advancements are expected from this DARPA research project, and how will they align with future defense needs?
The specific technological advancements are not detailed in the provided data. DARPA projects typically aim to explore and develop breakthrough technologies that could significantly alter the future battlefield or provide novel solutions to complex national security challenges. Alignment with future defense needs would be assessed through DARPA's strategic planning and threat assessments.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of funds?
Cost Plus Fixed Fee contracts require rigorous monitoring of direct costs by the contracting officer and administrative contracting officer. Mechanisms to mitigate overruns include detailed cost reporting, audits, and performance reviews. The fixed fee component provides an incentive for the contractor to control costs, as exceeding the estimated cost does not increase their fee.
How does the $43.3 million investment compare to similar R&D contracts awarded by DARPA or other defense agencies for comparable research areas?
Without specific details on the research area's scope and complexity, a direct comparison is challenging. However, $43.3 million for a 637-day R&D project is within the typical range for advanced technology development contracts managed by agencies like DARPA, which often fund high-risk, high-reward research.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 16
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905
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: $43,275,770
Exercised Options: $43,275,770
Current Obligation: $43,275,770
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $201,911
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-08-02
Current End Date: 2018-05-01
Potential End Date: 2018-05-01 00:00:00
Last Modified: 2021-07-29
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