DoD Awards L3Harris $29.5M for IDECM Organic Depot Support, Raising Concerns Over Competition
Contract Overview
Contract Amount: $29,472,284 ($29.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-11
End Date: 2026-11-30
Contract Duration: 1,207 days
Daily Burn Rate: $24.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IDECM ORGANIC DEPOT SUPPORT CAPABILITY
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $29.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: IDECM ORGANIC DEPOT SUPPORT CAPABILITY Key points: 1. Significant contract value of $29.5 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract supports critical defense systems, highlighting potential national security risks if not managed effectively. 4. The sector is specialized in defense electronics manufacturing.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. Without competitive bids, it's hard to benchmark pricing against similar services or market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The absence of competition suggests that taxpayers may be paying a premium for these services, as the government did not explore alternative, potentially more cost-effective, providers.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Dependence on a single contractor for critical depot support could create supply chain vulnerabilities. The long duration of the contract (over 3 years) locks in current pricing without market adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus Contract Type
- Sole-Source Award
Positive Signals
- Supports critical defense systems
- Long-term support capability
Sector Analysis
This contract falls within the defense electronics manufacturing sector, specifically focusing on support for the IDECM system. Spending benchmarks in this niche area are difficult to ascertain without competitive data, but sole-source awards often exceed market rates.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation and economic development.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is not exploiting the lack of competition. Robust performance metrics and regular reviews are crucial for accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- Sole-source award limits market competition and innovation.
- Potential for contractor lock-in and reduced government leverage.
- Cost-plus contract type can incentivize higher spending.
- Dependence on a single supplier poses supply chain risks.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to L3HARRIS TECHNOLOGIES, INC.. IDECM ORGANIC DEPOT SUPPORT CAPABILITY
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2023-08-11. End: 2026-11-30.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. However, without detailed documentation, it's difficult to assess if fair and reasonable pricing was achieved. The government should have conducted a thorough price analysis, potentially using historical data or independent cost estimates, to mitigate the risks associated with non-competitive procurement.
What are the potential risks associated with relying on a single contractor for IDECM organic depot support, especially given the contract's duration?
Relying on a single contractor creates significant risks, including potential supply chain disruptions if the contractor faces financial or operational issues. It also reduces leverage for negotiating future contracts or addressing performance deficiencies. The long duration exacerbates these risks by limiting flexibility and potentially locking in suboptimal terms or pricing.
How will the effectiveness of the IDECM organic depot support be measured and ensured under this cost-plus-fixed-fee contract?
Effectiveness will be measured through defined performance metrics and deliverables outlined in the contract. For a cost-plus-fixed-fee contract, oversight is critical to ensure costs remain reasonable and that the fixed fee is earned through satisfactory performance. Regular reviews of maintenance logs, system readiness rates, and turnaround times will be essential indicators.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001922R0058
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1395 TROUTMAN BLVD 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: $29,472,284
Exercised Options: $29,472,284
Current Obligation: $29,472,284
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $4,915,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-08-11
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2025-12-29
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