L3Harris Technologies awarded $35M for digital map computers, with a 10-year contract duration

Contract Overview

Contract Amount: $34,966,279 ($35.0M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-25

End Date: 2024-03-31

Contract Duration: 3,475 days

Daily Burn Rate: $10.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOT 14-16 DIGITAL MAP COMPUTER, DIGITAL VIDEO MAP COMPUTER, AND EXTENSION HOUSING FULL RATE PRODUCTION CONTRACT.

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: LOT 14-16 DIGITAL MAP COMPUTER, DIGITAL VIDEO MAP COMPUTER, AND EXTENSION HOUSING FULL RATE PRODUCTION CONTRACT. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract spans a decade, indicating a long-term need for these systems. 3. The firm-fixed-price structure aims to control costs, but requires careful monitoring. 4. This award represents a significant investment in navigation and guidance systems. 5. The geographic concentration in Florida may indicate specific operational needs or contractor presence.

Value Assessment

Rating: fair

The contract value of $34.97 million over approximately 10 years suggests an average annual spend of $3.5 million. Without specific benchmarks for digital map computers or comparable systems, it's difficult to definitively assess value for money. The firm-fixed-price contract type provides cost certainty for the government, but the lack of competition means there's no direct market comparison to gauge pricing efficiency. Further analysis would require benchmarking against similar systems or historical contract data for this specific technology.

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 among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It also suggests a potential reliance on a single supplier for these critical components.

Taxpayer Impact: Taxpayers may not be receiving the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost compared to a competed contract.

Public Impact

The Department of Defense benefits from the acquisition of advanced digital map computers and related systems. These systems are crucial for navigation, guidance, and situational awareness in military operations. The contract's duration suggests ongoing support and potential upgrades for these critical technologies. The primary workforce impacted would be within L3Harris Technologies, involved in the manufacturing and development of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Long contract duration (10 years) may lead to technology obsolescence if not managed proactively.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized technology.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term award ensures sustained availability of critical navigation systems.
Award to an established defense contractor suggests a level of reliability and expertise.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized area within the broader defense industrial base. This sector is characterized by high technological complexity and significant R&D investment. Spending in this area is critical for maintaining military readiness and technological superiority. Comparable spending benchmarks are difficult to ascertain without more specific details on the technology's application and scale.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, L3Harris Technologies, will likely perform the majority of the work. The impact on the small business ecosystem is therefore minimal in terms of direct subcontracting opportunities stemming from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on delivery, quality, and adherence to contract specifications. Transparency regarding the sole-source justification and ongoing performance metrics would be key accountability measures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navigation Systems Contracts
Defense Electronics Manufacturing
Avionics Systems Procurement
Guidance and Control Systems

Risk Flags

Sole-source award raises concerns about price competition.
Long contract duration may lead to technology obsolescence.
Lack of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to L3HARRIS TECHNOLOGIES, INC.. LOT 14-16 DIGITAL MAP COMPUTER, DIGITAL VIDEO MAP COMPUTER, AND EXTENSION HOUSING FULL RATE PRODUCTION CONTRACT.

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 $35.0 million.

What is the period of performance?

Start: 2014-09-25. End: 2024-03-31.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically occurs when a specific vendor is the only responsible source capable of providing the required goods or services. This could be due to proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if the original contract was awarded competitively and subsequent modifications or follow-on contracts are only feasible with the incumbent. Without further documentation from the agency, the precise justification remains unclear, but it implies a lack of viable alternatives or a strategic decision to rely on L3Harris's specific expertise for these digital map computers and related systems.

How does the $34.97 million contract value compare to historical spending on similar digital map computer systems?

Benchmarking this $34.97 million contract value against historical spending on similar digital map computer systems is challenging without more granular data. The contract spans approximately 10 years (September 2014 to March 2024), averaging around $3.5 million annually. The specific nature of 'LOT 14-16 DIGITAL MAP COMPUTER, DIGITAL VIDEO MAP COMPUTER, AND EXTENSION HOUSING FULL RATE PRODUCTION CONTRACT' suggests a specialized, potentially high-tech component. To provide a meaningful comparison, one would need access to historical contract databases filtered by the specific Product Service Code (PSC) or North American Industry Classification System (NAICS) code, and ideally, details on the system's capabilities and quantities. Without such comparative data, assessing whether this represents high or low spending is speculative.

What are the key performance indicators (KPIs) used to assess the success of this contract for L3Harris Technologies?

While the provided data does not explicitly list Key Performance Indicators (KPIs) for this contract, typical metrics for a firm-fixed-price production contract like this would focus on delivery timeliness, quality conformance, and adherence to technical specifications. For L3Harris Technologies, success would be measured by their ability to consistently deliver the digital map computers and extension housings meeting all contractual requirements within the agreed-upon schedule and budget. The government's assessment would likely involve tracking defect rates, on-time delivery percentages, and compliance with technical data packages. Performance reviews, potentially documented in contract performance reports (CPARs), would provide a formal assessment of the contractor's execution throughout the contract's lifecycle.

What are the potential risks associated with a 10-year contract for digital map computers, and how might they be mitigated?

A 10-year contract duration for technology-dependent items like digital map computers presents several risks. Technological obsolescence is a primary concern; the systems procured early in the contract might be outdated by its end. Rapid advancements in computing power, sensor technology, and mapping software could render the contracted systems less effective or incompatible with future platforms. Another risk is vendor lock-in, especially given the sole-source nature, which could limit flexibility and innovation. Mitigation strategies could include incorporating technology refresh clauses, performance-based requirements that allow for upgrades, regular reviews to assess technological relevance, and maintaining strong government oversight to ensure the contractor remains innovative and responsive to evolving needs. Defining clear exit strategies or transition plans towards the end of the contract is also crucial.

How does the geographic location (Florida) influence the contract's execution and oversight?

The contract's performance location in Florida ('st': 'FL', 'sn': 'FLORIDA') likely indicates the primary manufacturing or operational site for L3Harris Technologies related to this award. This geographic concentration can streamline oversight for the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA) if their field offices are co-located or nearby. It may also suggest logistical efficiencies for the contractor. However, it could also concentrate risks; a natural disaster or regional economic disruption in Florida could potentially impact contract performance more severely than if operations were distributed. The state's specific business environment and workforce availability might also play a role in the contractor's cost structure and execution capabilities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001913R2001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $35,366,061

Exercised Options: $35,203,604

Current Obligation: $34,966,279

Actual Outlays: $584,773

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $3,706,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline