DoD's $21.6M Videoscout Upgrade Contract Awarded to L3Harris Interstate Electronics Corporation

Contract Overview

Contract Amount: $21,561,461 ($21.6M)

Contractor: L3harris Interstate Electronics Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2011-12-05

Contract Duration: 801 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VIDEOSCOUT UPGRADES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to L3HARRIS INTERSTATE ELECTRONICS CORPORATION for work described as: VIDEOSCOUT UPGRADES Key points: 1. Contract awarded under a firm-fixed-price structure, indicating clear cost expectations. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 4. The contract duration of 801 days implies a significant project timeline for the upgrades. 5. Awarded by the Department of the Navy, this contract supports defense modernization efforts. 6. The contract was awarded in 2009, providing historical context for current spending.

Value Assessment

Rating: fair

The total award amount of $21.6 million for custom computer programming services is difficult to benchmark without specific details on the scope of 'Videoscout Upgrades.' However, given the firm-fixed-price nature, the government aimed to control costs. Comparing this to similar defense upgrade contracts would require more granular data on the technology and services provided. The value proposition hinges on the effectiveness and longevity of the upgraded Videoscout system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the Department of the Navy sought the best value proposition from the market.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Navy personnel who will utilize the upgraded Videoscout systems for their operational needs. The services delivered involve custom computer programming for the enhancement of existing Videoscout technology. The geographic impact is likely concentrated within naval operations and bases where these systems are deployed. Workforce implications may include specialized technical roles for the development, integration, and testing of the upgraded systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'Videoscout Upgrades' makes it challenging to assess the true value for money.
The contract was awarded in 2009, and its effectiveness and relevance may have diminished over time without further context on ongoing maintenance or follow-on contracts.
The absence of information on the number of bidders limits the assessment of the competitive landscape's impact on pricing.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The firm-fixed-price contract type provides cost certainty for the government.
The contract was awarded to a known entity, L3Harris Interstate Electronics Corporation, which may indicate a level of established capability.

Sector Analysis

The contract falls within the Custom Computer Programming Services sector, a subset of the broader Information Technology (IT) industry. This sector is characterized by rapid technological advancements and specialized development. The market size for defense-related IT services is substantial, with significant government investment in modernizing systems. This contract represents a specific investment in enhancing surveillance or reconnaissance capabilities through software and system upgrades.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, L3Harris, would determine any subcontracting opportunities based on their internal needs and procurement policies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring delivery of specified services within the agreed budget. Transparency is facilitated through contract award databases, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense IT Modernization Programs
Naval Surveillance Systems
Custom Software Development Contracts
Information Technology Services for DoD

Risk Flags

Lack of detailed scope of work
Limited information on number of bidders
Contract awarded in 2009, potential for obsolescence
No specific performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to L3HARRIS INTERSTATE ELECTRONICS CORPORATION. VIDEOSCOUT UPGRADES

Who is the contractor on this award?

The obligated recipient is L3HARRIS INTERSTATE ELECTRONICS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2009-09-25. End: 2011-12-05.

What specific capabilities did the 'Videoscout Upgrades' entail, and how did they enhance the Department of the Navy's operational effectiveness?

The provided data does not specify the exact nature of the 'Videoscout Upgrades.' However, given the NAICS code 541511 (Custom Computer Programming Services) and the context of defense spending, these upgrades likely involved enhancing the functionality, performance, or data processing capabilities of existing video surveillance or reconnaissance systems. This could include improvements in image quality, real-time analysis, data storage, transmission security, or integration with other command and control systems. The goal would be to provide naval forces with more advanced and reliable intelligence, surveillance, and reconnaissance (ISR) capabilities, potentially improving situational awareness, threat detection, and decision-making in operational environments. Without further documentation, the precise impact on operational effectiveness remains qualitative.

How did L3Harris Interstate Electronics Corporation's past performance and technical capabilities influence their selection for this contract?

The data indicates that L3Harris Interstate Electronics Corporation was the sole awardee for this contract. While specific past performance metrics are not detailed, the selection implies that the Department of the Navy assessed L3Harris as having the necessary technical expertise and a satisfactory track record to fulfill the requirements for custom computer programming services related to Videoscout upgrades. Government contracting typically involves a review of a bidder's performance on previous contracts, including their ability to meet technical specifications, adhere to schedules, and manage costs. L3Harris, as a significant defense contractor, likely possesses established capabilities in areas relevant to defense systems integration and software development, which would have been evaluated during the procurement process.

Can the $21.6 million contract value be considered a fair price for the services rendered, considering the contract's duration and scope?

Assessing the fairness of the $21.6 million price is challenging without a detailed breakdown of the scope of work and the specific 'Videoscout Upgrades' performed. The contract was firm-fixed-price, meaning the price was set upfront, and the contractor assumes the risk of cost overruns. The duration was 801 days (approximately 2.2 years). To determine price fairness, one would need to compare the cost per day or per deliverable against industry benchmarks for similar custom programming and system upgrade projects within the defense sector. Factors such as the complexity of the technology, the level of customization required, the security protocols involved, and the specific expertise needed would all influence the appropriate cost. Without this granular information, a definitive judgment on price fairness cannot be made.

What were the primary risks associated with this contract, and how were they mitigated?

Potential risks for a contract of this nature could include technical risks (e.g., unforeseen complexities in programming, integration issues with existing systems), schedule risks (e.g., delays in development or testing), and cost risks (though mitigated by the firm-fixed-price structure for the contractor). For the government, a key risk is receiving a product that does not fully meet operational requirements or becomes obsolete quickly. Mitigation strategies often involve robust technical reviews, phased development with clear milestones, rigorous testing and validation processes, and strong contract management oversight. The full and open competition likely mitigated the risk of poor performance by ensuring multiple qualified vendors competed, theoretically leading to the selection of the most capable and cost-effective solution. Specific mitigation plans employed by the Navy and L3Harris are not detailed in the provided data.

How does this $21.6 million contract compare to historical spending on similar Videoscout systems or related surveillance technologies by the Department of the Navy?

The provided data offers a single data point for this specific contract awarded in 2009. To compare historical spending, one would need access to broader contract databases and historical procurement records for the Department of the Navy concerning Videoscout systems or comparable surveillance technologies. Analyzing trends would involve looking at the number of similar contracts awarded over time, their total values, and the types of services procured (e.g., upgrades, new systems, maintenance). Without this comparative data, it's impossible to determine if the $21.6 million represents a significant increase, decrease, or consistent level of investment compared to past spending patterns for similar capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 602 E VERMONT AVE, ANAHEIM, CA, 46

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,561,461

Exercised Options: $21,561,461

Current Obligation: $21,561,461

Parent Contract

Parent Award PIID: GS35F0478P

IDV Type: FSS

Timeline