Coast Guard Awards $152M Firm Fixed Price Contract for C-130 Minotaur Missionization to L3Harris Technologies

Contract Overview

Contract Amount: $152,031,716 ($152.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-25

End Date: 2024-01-31

Contract Duration: 3,050 days

Daily Burn Rate: $49.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF CONTRACT HSCG23-15-C-2DA002 INCORPORATES PROPOSAL L3PID-CG2015-P001 DATED 02 JULY 2015. THIS IS A FIRM FIXED PRICE, NON-COMMERCIAL CONTRACT FOR C-130 MINOTAUR MISSIONIZATION. PERIOD OF PERFORMANCE: 09/25/2015 - 09/24/2020.

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $152.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::OT::IGF CONTRACT HSCG23-15-C-2DA002 INCORPORATES PROPOSAL L3PID-CG2015-P001 DATED 02 JULY 2015. THIS IS A FIRM FIXED PRICE, NON-COMMERCIAL CONTRACT FOR C-130 MINOTAUR MISSIONIZATION. PERIOD OF PERFORMANCE: 09/25/2015 - 09/24/2020. Key points: 1. Contract awarded for C-130 aircraft missionization, a critical component for Coast Guard operations. 2. L3Harris Technologies, a major defense contractor, secured the deal. 3. The contract is a firm fixed price, indicating a defined cost for the services. 4. Competition method was 'Full and Open', suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract is a firm fixed price, which helps control costs. The total award amount of $152M over a 5-year period suggests a significant investment in aircraft modernization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. This method allows any qualified vendor to bid.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for essential Coast Guard capabilities.

Public Impact

Enhances Coast Guard's C-130 aircraft capabilities for surveillance and mission operations. Supports national security and maritime domain awareness. Long-term contract ensures sustained operational readiness for a key asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (5 years), potentially leading to scope creep or cost overruns if not managed tightly.
Firm Fixed Price contracts can be less flexible if requirements change significantly during performance.

Positive Signals

Full and open competition generally yields competitive pricing.
Clear definition of services (missionization) for a specific platform (C-130).

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for specialized missionization of existing platforms. Spending in this area is driven by defense modernization needs and operational requirements.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large business. There is no explicit indication of small business subcontracting goals or participation in the provided data.

Oversight & Accountability

The contract is a definitive contract, suggesting a well-defined scope. Oversight will be crucial to ensure the missionization meets specifications and stays within budget over the performance period.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Long contract duration (5 years).
Potential for scope creep in complex modifications.
Reliance on a single large contractor.
Need for robust oversight to ensure successful integration and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $152.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::OT::IGF CONTRACT HSCG23-15-C-2DA002 INCORPORATES PROPOSAL L3PID-CG2015-P001 DATED 02 JULY 2015. THIS IS A FIRM FIXED PRICE, NON-COMMERCIAL CONTRACT FOR C-130 MINOTAUR MISSIONIZATION. PERIOD OF PERFORMANCE: 09/25/2015 - 09/24/2020.

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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $152.0 million.

What is the period of performance?

Start: 2015-09-25. End: 2024-01-31.

What specific missionization capabilities are being added to the C-130 aircraft, and how do these align with current Coast Guard operational needs?

The contract details 'C-130 Minotaur Missionization,' which typically involves integrating advanced sensor suites, communication systems, and mission management hardware. This likely enhances the aircraft's capabilities for maritime patrol, search and rescue, interdiction, and intelligence, surveillance, and reconnaissance (ISR) missions, directly supporting the Coast Guard's evolving operational requirements in areas like drug interdiction and homeland security.

What are the potential risks associated with a 5-year firm fixed price contract for complex aircraft modification, and how are they mitigated?

Risks include potential for scope creep if requirements evolve, contractor underestimation of costs, or unforeseen technical challenges during integration. Mitigation strategies often involve detailed contract clauses, phased delivery schedules, rigorous quality assurance, and clear change order processes. The firm fixed price structure incentivizes the contractor to manage costs efficiently, but requires careful initial pricing and ongoing oversight.

How does the performance of this missionized C-130 platform compare to alternative platforms or capabilities the Coast Guard could have acquired?

The C-130 platform offers significant range, payload, and endurance, making it suitable for long-duration maritime missions. Missionizing it likely provides a cost-effective way to enhance these capabilities compared to acquiring entirely new, specialized aircraft. The effectiveness hinges on the successful integration of new systems and their reliability in demanding operational environments, providing a tailored solution for specific Coast Guard needs.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCG23-15-R-2DA002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $153,655,726

Exercised Options: $152,031,716

Current Obligation: $152,031,716

Subaward Activity

Number of Subawards: 147

Total Subaward Amount: $32,688,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline