DoD awards $27.6M for Distributed Targeting System mass storage, with L3Harris Technologies Inc. as sole source

Contract Overview

Contract Amount: $27,635,658 ($27.6M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-25

End Date: 2024-12-31

Contract Duration: 1,924 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DISTRIBUTED TARGETING SYSTEM (DTS) MASS STORAGE UNIT (MSU) AND BULK DATA CARTRIDGE (BDC)

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: DISTRIBUTED TARGETING SYSTEM (DTS) MASS STORAGE UNIT (MSU) AND BULK DATA CARTRIDGE (BDC) Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Long contract duration of 1924 days suggests a need for sustained support. 3. Firm Fixed Price contract type aims to control costs for the government. 4. Focus on mass storage and bulk data cartridges indicates critical data handling needs. 5. Awarded by the Defense Contract Management Agency, highlighting defense sector importance. 6. Geographic location of awardee in Florida may have local economic implications.

Value Assessment

Rating: questionable

Benchmarking the value for this specific Distributed Targeting System (DTS) mass storage unit and bulk data cartridge is challenging due to the sole-source nature of the award. Without competitive bids, it's difficult to ascertain if L3Harris Technologies, Inc. provided the most cost-effective solution. The firm fixed-price contract type offers some cost certainty, but the absence of competition prevents a robust comparison against market rates or similar government contracts. Further analysis would require access to internal cost data or historical pricing for comparable systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3Harris Technologies, Inc. was the only vendor considered. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. The absence of a competitive bidding process means that taxpayers did not benefit from potential price reductions that could arise from multiple companies vying for the contract. This limits the government's ability to ensure it received the best possible price.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium, as there was no pressure on the contractor to offer the lowest possible price. This also reduces transparency in the pricing structure.

Public Impact

The Department of Defense benefits from the acquisition of critical mass storage and bulk data cartridges for its Distributed Targeting System. This contract supports the operational readiness and data management capabilities of defense personnel. The services delivered are essential for processing and storing large volumes of targeting data. The awardee's location in Florida may lead to localized economic benefits and job retention within the state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration could indicate potential for cost overruns if not managed effectively.
Lack of transparency in sole-source justification requires careful review.
Dependence on a single supplier for critical components can pose supply chain risks.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established defense contractor suggests potential for reliable delivery.
Contract supports critical defense systems, ensuring operational capabilities.

Sector Analysis

The defense sector relies heavily on specialized technology for intelligence, surveillance, and reconnaissance (ISR) capabilities. Contracts for components like mass storage units and data cartridges are crucial for managing the vast amounts of data generated by modern military operations. The market for such specialized defense electronics is often characterized by high barriers to entry due to technological complexity and stringent security requirements. L3Harris Technologies, Inc. is a significant player in this space, providing advanced solutions to government agencies. Comparable spending benchmarks are difficult to establish without competitive data, but the sustained need for such systems underscores their importance in defense readiness.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated within this award. Consequently, the direct impact on the small business ecosystem from this particular contract is likely minimal. However, L3Harris Technologies, Inc., as a large prime contractor, may engage small businesses as subcontractors on other projects, but this specific award does not highlight such opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a definitive contract awarded by the Department of Defense, it is subject to standard government oversight mechanisms, including audits and performance reviews. Transparency regarding the sole-source justification and the contractor's performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Intelligence Systems
Tactical Data Systems
Military Logistics and Support Equipment
Aerospace and Defense Manufacturing

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to L3HARRIS TECHNOLOGIES, INC.. DISTRIBUTED TARGETING SYSTEM (DTS) MASS STORAGE UNIT (MSU) AND BULK DATA CARTRIDGE (BDC)

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 $27.6 million.

What is the period of performance?

Start: 2019-09-25. End: 2024-12-31.

What is the historical spending pattern for Distributed Targeting System (DTS) mass storage and bulk data cartridges?

Analyzing historical spending for DTS mass storage and bulk data cartridges requires access to detailed procurement databases. Without specific historical data for this exact component, we can infer trends from broader Department of Defense (DoD) spending on data storage and processing solutions. The DoD consistently invests billions annually in IT infrastructure, including data storage, to manage the increasing volume of intelligence, surveillance, and reconnaissance (ISR) data. Spending in this area is driven by technological advancements, evolving threat landscapes, and the need for enhanced situational awareness. Contracts for specialized components like those for the DTS are often long-term due to the integrated nature of military systems and the rigorous testing and certification processes involved. The trend is generally towards higher capacity, faster access, and more resilient storage solutions, reflecting the growing data demands of modern warfare.

How does the firm fixed price (FFP) contract type mitigate risks for the government in this sole-source award?

The Firm Fixed Price (FFP) contract type is designed to provide the government with cost certainty, especially crucial in a sole-source scenario where competitive pricing is absent. Under an FFP agreement, the contractor, L3Harris Technologies, Inc., is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the risk of cost overruns from the government to the contractor. For the government, this means the total expenditure is known upfront, simplifying budget management and preventing unexpected increases in expenditure. While it doesn't guarantee the 'best' price compared to a competitive bid, it does protect against escalating costs due to contractor inefficiencies or unforeseen expenses on their part. The success of FFP in a sole-source context relies heavily on the initial price negotiation and the contractor's ability to manage their own costs effectively.

What are the potential risks associated with a sole-source award for critical defense components like the DTS MSU and BDC?

Sole-source awards for critical defense components present several significant risks. Firstly, the absence of competition can lead to inflated prices, as the contractor faces no market pressure to offer the most cost-effective solution. Taxpayers may end up bearing a higher cost than if the contract had been competed. Secondly, it can stifle innovation. Without the incentive of winning future contracts through competitive bidding, the sole-source provider may have less motivation to invest in developing more advanced or cost-efficient technologies. Thirdly, it creates a dependency on a single supplier. If L3Harris Technologies, Inc. experiences production issues, financial difficulties, or decides to exit this particular market segment, the Department of Defense could face severe supply chain disruptions for a critical system. This dependency also reduces the government's leverage in future negotiations or contract modifications.

What is L3Harris Technologies, Inc.'s track record with similar DoD contracts for data storage and targeting systems?

L3Harris Technologies, Inc. has a substantial track record of providing complex systems and components to the Department of Defense (DoD), including solutions related to data processing, storage, and targeting technologies. As a major defense contractor, they are involved in numerous programs across various military branches. Their experience often encompasses the development and manufacturing of integrated electronic systems, communication equipment, and avionics. Specific to data storage and targeting systems, L3Harris has been a key supplier for various platforms requiring robust data management capabilities. While this particular contract for the DTS MSU and BDC is sole-source, the company's broader portfolio suggests a deep understanding of the technical requirements and operational needs of the DoD in these areas. Performance history on other large, complex contracts would provide further insight into their reliability and quality.

How does the geographic location (Florida) of the awardee impact the contract's execution and oversight?

The geographic location of the awardee, L3Harris Technologies, Inc., in Florida (specifically, the award is associated with 'FL') primarily impacts the logistical aspects of contract execution and the local presence of oversight. The Defense Contract Management Agency (DCMA) has offices and personnel located throughout the United States, including Florida, which would likely be responsible for direct oversight of the contractor's facilities and performance in that region. Proximity can facilitate more frequent site visits, inspections, and direct communication between government representatives and the contractor's team. For the contractor, operating within Florida may offer advantages related to the state's established aerospace and defense industry ecosystem, including a skilled workforce and supporting supply chains. However, the physical location itself does not fundamentally alter the contract's terms, scope, or the ultimate responsibilities of either party, beyond the logistical and oversight considerations.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001918R0074

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: $34,225,265

Exercised Options: $27,635,658

Current Obligation: $27,635,658

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $7,098,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline