DoD awards $65.7M for P-8A airframe depot maintenance, L3Harris Technologies to perform work

Contract Overview

Contract Amount: $65,741,262 ($65.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-09-13

End Date: 2030-03-31

Contract Duration: 2,025 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $65.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP Key points: 1. Contract awarded to L3Harris Technologies for depot maintenance and repair of P-8A aircraft. 2. The contract has a base period and potential option periods extending through March 2030. 3. This award represents a significant investment in maintaining the operational readiness of the P-8A Poseidon fleet. 4. The firm-fixed-price contract type suggests a defined scope and cost structure. 5. The contract was awarded under full and open competition, indicating a broad search for qualified bidders. 6. The value of the contract is substantial, reflecting the complexity and criticality of aircraft depot maintenance.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed cost breakdowns for depot maintenance, which are not publicly available. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the services. Comparing this to historical P-8A maintenance contracts or similar large aircraft depot maintenance contracts would provide a clearer picture of value for money. The duration and scope indicate a significant, but potentially cost-effective, approach to ensuring fleet readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a competitive environment, which generally leads to better pricing and service offerings for the government. The level of competition suggests that the market has multiple capable providers for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible value by considering a wide range of potential contractors.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational readiness, ensuring the P-8A Poseidon aircraft are maintained to high standards. Services delivered include depot-level maintenance and repair for the P-8A airframe, crucial for extending aircraft lifespan and ensuring flight safety. The geographic impact is primarily centered around the contractor's facilities in Texas, where the maintenance work will be performed. Workforce implications include the creation or sustainment of skilled jobs in aerospace maintenance and repair within the contractor's operational area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical depot maintenance could pose a risk if performance issues emerge.
The long duration of the contract (over 5 years) may lead to challenges in adapting to evolving technologies or maintenance best practices.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award under full and open competition suggests a robust bidding process and potential for competitive pricing.
The contract aims to ensure the continued operational readiness of a key naval asset, the P-8A Poseidon.
The contractor, L3Harris Technologies, is a known entity in the aerospace and defense sector, suggesting a degree of established capability.

Sector Analysis

The P-8A Poseidon is a maritime patrol and reconnaissance aircraft. Its maintenance falls within the broader aerospace and defense sector, specifically focusing on specialized aircraft support services. The market for depot-level maintenance is characterized by high technical barriers to entry, requiring significant investment in facilities, skilled labor, and specialized equipment. Spending in this area is driven by the need to maintain the operational readiness and longevity of aging or complex military aircraft fleets. Comparable spending benchmarks would involve analyzing other large aircraft depot maintenance contracts across different military branches.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, L3Harris Technologies, may engage small businesses as subcontractors for specialized services or components. The impact on the small business ecosystem will depend on the subcontracting opportunities generated by this award, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified maintenance services. Transparency is generally maintained through contract award announcements and reporting requirements, though detailed performance metrics are often not publicly disclosed. The Inspector General of the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

P-8A Poseidon Aircraft Program
Naval Aviation Maintenance Programs
Aerospace Depot Maintenance Services
Defense Contractor Support Services

Risk Flags

Potential for schedule delays
Risk of unforeseen maintenance requirements impacting cost
Dependence on contractor's specialized workforce and facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. P-8A AIRFRAME DEPOT MAINTENANCE AND REPAIR PHASE-IN/STAND UP

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $65.7 million.

What is the period of performance?

Start: 2024-09-13. End: 2030-03-31.

What is the historical performance record of L3Harris Technologies with similar large-scale aircraft maintenance contracts?

L3Harris Technologies has a significant track record in aerospace and defense, including complex maintenance, repair, and overhaul (MRO) services for various aircraft platforms. While specific details on P-8A depot maintenance performance are not readily available from this award notice, the company's broader experience suggests a capacity to handle such contracts. Historical performance would typically be assessed through past performance evaluations during the bidding process, which are proprietary. Government contract databases and performance rating systems (like CPARS) might offer insights into their general performance across different contracts, looking for patterns in on-time delivery, quality of work, and cost control.

How does the awarded amount of $65.7 million compare to the estimated cost of P-8A airframe depot maintenance?

The awarded amount of $65.7 million covers the base period and potential option periods for P-8A airframe depot maintenance and repair, extending through March 2030. Without a detailed breakdown of the contract's value by period or specific services, it's challenging to directly compare it to an 'estimated cost.' However, the total value represents the government's commitment for the defined scope over the contract's life. To assess value, one would need to compare this total contract value against the projected maintenance needs of the P-8A fleet over the same period, factoring in inflation, the number of aircraft to be serviced, and the complexity of the required maintenance tasks. Benchmarking against similar large aircraft MRO contracts would also be informative.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract?

Key performance indicators for this contract would likely focus on ensuring the operational readiness and airworthiness of the P-8A aircraft. Specific KPIs could include on-time delivery of aircraft after maintenance, adherence to quality standards (e.g., zero repeat defects), completion of maintenance within scheduled timelines, and compliance with all safety and regulatory requirements. The firm-fixed-price nature of the contract implies that meeting the defined scope and quality standards within the agreed price is paramount. Performance metrics are typically detailed in the contract's Performance Work Statement (PWS) and are used for contractor performance evaluations.

What is the projected spending trend for P-8A airframe depot maintenance over the next five years?

Projecting spending trends for P-8A airframe depot maintenance requires analyzing historical spending patterns, the size and age of the P-8A fleet, and planned upgrades or modifications. This $65.7 million contract, spanning from late 2024 to early 2030, provides a significant data point for the upcoming years. If this contract covers the majority of the fleet's depot maintenance needs, it suggests a relatively stable spending level for this period. However, factors like increased flight hours, unforeseen wear and tear, or new maintenance requirements could lead to adjustments. Analyzing the Navy's overall aviation maintenance budget and fleet readiness goals would offer a broader context for future spending projections.

Are there any identified risks associated with the contractor's ability to perform this depot maintenance?

The provided award notice does not explicitly detail identified risks associated with L3Harris Technologies' ability to perform this specific contract. However, general risks in large-scale depot maintenance contracts include potential delays due to supply chain disruptions for parts, unforeseen technical challenges requiring extensive repairs, labor shortages, or facility limitations. The government's selection process, particularly the past performance evaluation, would have assessed these potential risks. The firm-fixed-price structure aims to mitigate financial risk for the government, but performance risk remains, managed through contract oversight and defined remedies for non-performance.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001924R0002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $175,755,223

Exercised Options: $65,741,262

Current Obligation: $65,741,262

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,501,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001924D0120

IDV Type: IDC

Timeline