DoD awards $39.6M to L3Harris for Engineering Support, raising questions on competition and value
Contract Overview
Contract Amount: $39,595,864 ($39.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-03-08
End Date: 2014-09-30
Contract Duration: 1,667 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND DEPOT SUPPORT SERVICES
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32902
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING AND DEPOT SUPPORT SERVICES Key points: 1. Contract awarded to L3Harris Technologies, Inc. for $39.6M. 2. Services are for Engineering and Depot Support. 3. Contract was not competed, raising concerns about price discovery. 4. Sector context is Defense, specifically communications equipment manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the $39.6M represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in inflated prices, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these services, making oversight crucial. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency
Positive Signals
- Essential support services for defense operations
Sector Analysis
This contract falls within the Defense sector, specifically supporting communications equipment manufacturing. Spending in this area is critical for national security, but competitive procurement is vital to ensure efficiency.
Small Business Impact
The data indicates this contract was not awarded to small businesses.
Oversight & Accountability
The 'not competed' status suggests potential weaknesses in oversight or justification for a sole-source award. Further review is needed to ensure accountability.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for overpricing
- Lack of transparency in procurement
Tags
other-communications-equipment-manufactu, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING AND DEPOT SUPPORT SERVICES
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 $39.6 million.
What is the period of performance?
Start: 2010-03-08. End: 2014-09-30.
What was the justification for not competing this significant contract?
The justification for not competing this $39.6M contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as the unavailability of other sources or a critical need that cannot be met through competition. Without this information, it's impossible to assess the validity of the sole-source decision.
How does the Cost Plus Fixed Fee structure impact potential cost savings?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it provides flexibility, it can incentivize contractors to incur higher costs, as their fee remains constant. This structure, especially without competition, offers limited incentive for cost efficiency and can lead to higher overall spending compared to fixed-price contracts.
What is the long-term value proposition of this sole-source award?
The long-term value proposition of this sole-source award is questionable without competitive benchmarking. While L3Harris may provide essential services, the lack of competition prevents an objective assessment of whether taxpayers are receiving the best possible value. Future procurements should prioritize competition to ensure cost-effectiveness and innovation.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003910R0013
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $44,332,659
Exercised Options: $41,486,182
Current Obligation: $39,595,864
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-03-08
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2021-11-03
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