Naval Air Systems Command awarded $601.4M for F/A-18 E/F hardware, with L3Harris Technologies as the sole contractor

Contract Overview

Contract Amount: $39,340,799 ($39.3M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-19

End Date: 2015-06-26

Contract Duration: 3,690 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200508!240836!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0026 !A!N! !N! ! !20050519!20070131!601442247!601442247!001876440!N!EDO M TECH !1458 COUNTY LINE ROAD !HUNTINGDON VAL !PA!19006!36368!061!42!HUNTINGDON !HUNTINGDON !PENN !+000010988437!N!N!000010988437!5342!HARDWARE, WEAPON SYSTEM !A1C!OTHER AIRCRAFT EQUIPMENT !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!Z!N!A! ! !N!B!N!N! ! !A! !A!A!000!D!B!N! ! ! !Y!1700!N00019!0001! !

Place of Performance

Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200508!240836!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0026 !A!N! !N! ! !20050519!20070131!601442247!601442247!001876440!N!EDO M TECH !1458 COUNTY LINE ROAD !HUNTINGDON VAL !PA!19006!36368!061!42!HUNTINGDON !HUNT… Key points: 1. Contract awarded for critical F/A-18 E/F hardware, indicating a need for specialized components. 2. Sole-source award suggests limited market availability or unique contractor capabilities. 3. Long contract duration of over 12 years implies a sustained requirement for these parts. 4. Firm Fixed Price contract type aims to control costs, but potential for cost overruns exists with sole-source awards. 5. Contractor L3Harris Technologies is a significant defense supplier, suggesting established relationships and expertise. 6. The contract's value of over $600 million highlights its substantial impact on the defense budget.

Value Assessment

Rating: fair

The contract's total value of $601.4 million over its extended period suggests a significant investment. Benchmarking this against similar sole-source awards for specialized aircraft hardware is challenging due to the unique nature of such components. The firm fixed-price structure provides some cost certainty, but the lack of competition inherently limits price discovery and potential savings for the government. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when there is a compelling justification for excluding competition. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for this hardware due to the absence of competitive pressure. The government's ability to negotiate the best possible price was limited in this scenario.

Public Impact

The primary beneficiaries are the U.S. Navy's F/A-18 E/F Super Hornet fleet, ensuring operational readiness. Services delivered include the provision of essential hardware for these advanced fighter jets. The geographic impact is primarily within the defense industrial base, supporting manufacturing and supply chains. Workforce implications include employment for skilled labor in manufacturing, engineering, and logistics at L3Harris Technologies and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Long contract duration increases exposure to potential price escalations or changes in market conditions.
Lack of transparency in the sole-source justification process can obscure the rationale for not competing.
Dependence on a single contractor for critical components can create supply chain risks.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
Award to an established contractor like L3Harris Technologies suggests a high likelihood of successful delivery.
The contract supports a critical platform (F/A-18 E/F), ensuring national security capabilities.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft components. The market for specialized military aircraft hardware is often characterized by high barriers to entry, proprietary technology, and long development cycles. Spending in this area is driven by defense modernization efforts and the sustainment of existing fleets. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of military hardware, but large-scale contracts for major aircraft systems can run into billions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, L3Harris Technologies, will likely fulfill the contract requirements directly or through its own supply chain, potentially limiting direct subcontracting opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including delivery schedules and quality standards. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F/A-18 E/F Super Hornet Program
Naval Aviation Sustainment
Defense Industrial Base Support
Aircraft Hardware Procurement

Risk Flags

Sole-source award limits competition.
Long contract duration may increase risk of price escalation.
Lack of detailed performance data in summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to L3HARRIS TECHNOLOGIES, INC.. 200508!240836!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0026 !A!N! !N! ! !20050519!20070131!601442247!601442247!001876440!N!EDO M TECH !1458 COUNTY LINE ROAD !HUNTINGDON VAL !PA!19006!36368!061!42!HUNTINGDON !HUNTINGDON !PENN !+000010988437!N!N!000010988437!5342!HARDWARE, WEAPON SYSTEM !A1C!OTHER AIRCRAFT EQUIPMENT !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !202

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 $39.3 million.

What is the period of performance?

Start: 2005-05-19. End: 2015-06-26.

What is the specific nature of the 'Hardware, Weapon System' being procured under this contract?

The data indicates the Product Service Code (PSC) is 549, which corresponds to 'Hardware, Weapon System'. The specific item is listed as 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. While the exact components are not detailed in the provided data, this classification suggests the procurement of critical hardware integral to the F/A-18 E/F's weapon systems or overall operational functionality. This could include structural components, specialized mounts, power systems, or other essential parts that are not standard off-the-shelf items and are specific to the F/A-18 E/F platform's combat capabilities.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data explicitly states the contract type as 'NOT COMPETED' and the contracting method as 'SOLE SOURCE'. While the specific justification for this sole-source award is not detailed in the extract, common reasons include the unavailability of other responsible sources, the need to procure unique or specialized technology, or urgent and compelling circumstances where competition is not feasible. For defense contracts, this often relates to proprietary technology, existing system integration requirements, or the need for specific expertise held by only one contractor. Without further documentation, the precise rationale remains unstated in this data.

How does the contract's duration of over 12 years (from award to final delivery) impact its value and risk?

A contract duration spanning over 12 years (May 2005 to June 2015) for hardware procurement suggests a long-term, sustained need for these components, likely tied to the lifecycle of the F/A-18 E/F aircraft. This extended period can introduce risks such as price escalation due to inflation or market fluctuations, especially under a firm fixed-price contract where the government is largely shielded from cost increases but the contractor bears the risk. Conversely, it allows for stable production planning and potential economies of scale for the contractor. For the government, it ensures a consistent supply chain but necessitates careful management to avoid obsolescence and to ensure the fixed price remains competitive over the contract's life.

What is the significance of L3Harris Technologies being the sole contractor for this substantial award?

L3Harris Technologies, a major defense contractor, being the sole awardee for a $601.4 million contract for F/A-18 E/F hardware signifies their critical role and specialized capabilities in supporting this naval aviation platform. As a sole-source award, it implies that L3Harris possesses unique expertise, technology, or production capacity essential for these specific components that other potential bidders do not. This concentration of capability with one provider highlights the importance of their contribution to the F/A-18 E/F program's sustainment and operational readiness, while also underscoring the government's reliance on this specific entity for these critical parts.

Are there any indications of performance issues or successes associated with this contract based on the provided data?

The provided data extract does not contain specific performance metrics, past performance ratings, or details about contract modifications that would indicate successes or issues. It primarily focuses on the contract's administrative and financial aspects: award amount, dates, contractor, and type of award. To assess performance, one would need to examine contract line item details, delivery performance reports, quality assurance records, and any contract modification history, none of which are present in this summary data.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline