L3Harris Technologies awarded $61.7M for Concept Demonstrator design, a significant R&D investment
Contract Overview
Contract Amount: $61,695,376 ($61.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-07-13
End Date: 2013-04-12
Contract Duration: 1,004 days
Daily Burn Rate: $61.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONCEPT DEMONSTRATOR (CD) DESIGN
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $61.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: CONCEPT DEMONSTRATOR (CD) DESIGN Key points: 1. Contract value represents a substantial commitment to advanced technology development. 2. Competition dynamics suggest a robust market for specialized R&D services. 3. Performance risk is moderate given the research and development nature of the work. 4. This contract falls within the broader defense R&D sector, focusing on physical and engineering sciences. 5. The award highlights the government's reliance on established contractors for complex technological endeavors.
Value Assessment
Rating: good
The contract value of $61.7 million for a concept demonstrator design appears reasonable within the context of advanced R&D projects. Benchmarking against similar large-scale research and development contracts, this award falls within a typical range for complex system design and prototyping. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, suggesting a balanced approach to value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With four bids received, the competition level suggests a healthy interest in this area of defense research. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition for this R&D contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through multiple bids.
Public Impact
The primary beneficiaries are the Department of Defense, which will receive advanced technology prototypes. The services delivered include the design and development of a concept demonstrator, crucial for future system advancements. The geographic impact is centered in New Jersey, where L3Harris Technologies is located, potentially creating or sustaining high-skilled jobs. Workforce implications include the employment of specialized engineers, scientists, and technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in fixed-fee contracts for R&D.
- Scope creep could increase the overall cost if not managed tightly.
- Dependence on a single contractor for critical technology development.
Positive Signals
- Award to a reputable contractor with a track record in defense R&D.
- Full and open competition suggests a competitive pricing environment.
- Clear definition of a concept demonstrator limits the scope to design and initial development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The market for defense R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks in this area often involve multi-million dollar awards for system design, prototyping, and technology maturation, reflecting the complexity and strategic importance of these projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor, and the direct impact on the small business ecosystem may be limited unless L3Harris Technologies actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. The cost-plus-fixed-fee structure necessitates careful monitoring of expenditures to prevent cost overruns. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction in cases of fraud or mismanagement.
Related Government Programs
- Advanced Technology Development Programs
- Defense Research and Engineering
- System Design and Prototyping
- Concept Development Contracts
Risk Flags
- Potential for cost growth in CPFF contracts.
- Complexity of R&D may lead to schedule delays.
- Reliance on a single contractor for critical technology.
Tags
research-and-development, department-of-defense, l3harris-technologies, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, new-jersey, large-business, defense-contract-management-agency, physical-engineering-life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.7 million to L3HARRIS TECHNOLOGIES, INC.. CONCEPT DEMONSTRATOR (CD) DESIGN
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 $61.7 million.
What is the period of performance?
Start: 2010-07-13. End: 2013-04-12.
What is L3Harris Technologies' track record with similar government R&D contracts?
L3Harris Technologies, a major defense contractor, has a substantial history of performing research and development contracts for the U.S. government, including the Department of Defense. They are known for their work in areas such as electronic warfare, communications, space systems, and advanced sensors. Their track record typically involves complex system development, integration, and testing. While specific performance metrics for past R&D contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive performance history and capability to deliver on challenging technological requirements. Analyzing their portfolio of awarded contracts would reveal a pattern of engagement in high-value, technically demanding projects.
How does the $61.7 million value compare to other concept demonstrator contracts?
The $61.7 million award for a concept demonstrator design is a significant but not extraordinary figure within the realm of defense R&D. Concept demonstrators are early-stage prototypes intended to prove the feasibility of new technologies or system concepts. The cost can vary widely based on the complexity of the technology, the required level of fidelity, and the duration of the design and development phase. For advanced systems involving sophisticated hardware, software, and integration, values in the tens of millions are common. Contracts for more basic research or less complex demonstrations might be in the single-digit millions, while programs requiring extensive simulation, multiple prototypes, or advanced materials could exceed $100 million. This award appears to be in the mid-to-high range for a concept demonstrator, reflecting the anticipated complexity of the technology being developed.
What are the primary risks associated with this type of cost-plus-fixed-fee R&D contract?
Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility for R&D, carry inherent risks. For the government, the primary risk is potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, driving up expenses beyond the initial estimate. While the 'fixed fee' component provides a ceiling on the contractor's profit, the total cost to the government can still escalate. For the contractor, the risk lies in underestimating costs, which could lead to reduced profit margins or even losses if the fixed fee is insufficient to cover actual expenses. Effective oversight, detailed cost tracking, and robust change management are crucial to mitigate these risks for both parties.
How effective is full and open competition in ensuring value for money in R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that incentivizes contractors to offer their best technical solutions at the most competitive prices. This process helps in price discovery, allowing the government to benchmark proposed costs against market rates and multiple offers. In R&D, where innovation and technical merit are paramount, competition can also drive creativity and lead to more efficient approaches. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical proposals alongside cost.
What is the historical spending trend for concept demonstrator designs within the Department of Defense?
Historical spending on concept demonstrator designs within the Department of Defense (DoD) has been substantial and generally follows trends in technological advancement and strategic priorities. The DoD consistently invests in early-stage research and development to maintain a technological edge. Spending in this area fluctuates based on emerging threats, new technological opportunities, and budget allocations. Over the past decade, there has been a continuous emphasis on developing next-generation capabilities across various domains, including cyber, artificial intelligence, hypersonics, and advanced materials. Consequently, funding for concept demonstrators and prototyping has remained a significant portion of the DoD's R&D budget, often awarded through competitive processes to both large and small businesses, reflecting the dynamic nature of defense innovation.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0001909R0238
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 77 RIVER RD, CLIFTON, NJ, 07014
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: $61,695,376
Exercised Options: $61,695,376
Current Obligation: $61,695,376
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-13
Current End Date: 2013-04-12
Potential End Date: 2013-04-12 00:00:00
Last Modified: 2021-11-03
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