Navy awards $5.7M C4ISTAR LCS contract to L3Harris Technologies for engineering services
Contract Overview
Contract Amount: $5,699,346 ($5.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-11
End Date: 2026-04-11
Contract Duration: 365 days
Daily Burn Rate: $15.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHILIPPINES C4ISTAR LCS
Plain-Language Summary
Department of Defense obligated $5.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PHILIPPINES C4ISTAR LCS Key points: 1. Contract awarded for critical C4ISTAR capabilities, indicating a need for advanced command, control, communications, computers, intelligence, surveillance, reconnaissance, and targeting systems. 2. The contract's value of $5.7 million suggests a focused scope, likely for specific system enhancements or support rather than a broad platform acquisition. 3. Awarded to L3Harris Technologies, a known defense contractor, implying a reliance on established expertise for complex systems. 4. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the justification for sole-source procurement and potential missed opportunities for broader market engagement. 5. The contract duration of one year (365 days) points to a project with a defined, short-term objective or a phase of a larger, ongoing effort. 6. The 'COST PLUS FIXED FEE' contract type suggests that while costs are reimbursed, there's a pre-determined profit margin, balancing risk between the government and contractor.
Value Assessment
Rating: fair
Benchmarking this $5.7 million contract is challenging without specific deliverables or comparable sole-source awards. However, the Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed closely. The value appears moderate for specialized engineering services within the defense sector, but its true value for money depends heavily on the successful delivery of the C4ISTAR capabilities and the justification for its non-competitive award.
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. The justification for this approach is not provided in the data, but typically sole-source awards are made when only one vendor possesses the necessary unique capabilities, or in urgent situations. The lack of competition means the Navy did not benefit from potential price reductions or innovative solutions that might have emerged from a competitive bidding process.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The justification for the sole-source award needs to be robust to ensure public funds are used efficiently.
Public Impact
The primary beneficiaries are the U.S. Navy's operational forces who will receive enhanced C4ISTAR capabilities, crucial for mission effectiveness. Services delivered include specialized engineering support for critical command, control, and intelligence systems. The geographic impact is likely focused on naval operations and potentially specific fleet assets, though the exact deployment is not specified. Workforce implications may involve specialized engineers and technical personnel at L3Harris Technologies, contributing to high-skilled employment in the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and innovation.
- Cost Plus Fixed Fee contracts can sometimes inflate costs if not rigorously managed.
- Lack of detailed performance metrics makes assessing value for money difficult.
- The specific C4ISTAR system and its criticality are not fully detailed, hindering a complete risk assessment.
Positive Signals
- Award to an established defense contractor (L3Harris Technologies) suggests technical proficiency.
- Focus on C4ISTAR indicates investment in critical national security capabilities.
- Defined contract duration suggests a manageable project scope.
Sector Analysis
The defense sector, particularly within naval operations, heavily relies on advanced C4ISTAR systems for situational awareness and operational command. This contract fits within the broader market for defense engineering services, which is substantial, with significant government spending allocated annually to maintain and upgrade these complex technological infrastructures. Comparable spending benchmarks would typically involve other sole-source or competitively awarded engineering contracts for specialized defense systems, often running into tens or hundreds of millions of dollars depending on the scope.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, L3Harris Technologies, is a large corporation. There is no information provided regarding subcontracting plans to small businesses. This suggests that the primary focus is on the prime contractor's capabilities, and the direct impact on the small business ecosystem for this specific award is likely minimal unless L3Harris voluntarily engages small business subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny may be higher to ensure the justification is sound and the pricing is fair. Transparency is limited by the non-competitive nature, but contract performance reports and financial audits would be standard oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Naval C4ISTAR Modernization Programs
- Defense Engineering Services Contracts
- Command and Control Systems Development
- Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
- Tactical Data Link Systems
Risk Flags
- Sole-source award justification requires scrutiny.
- Cost Plus Fixed Fee contracts necessitate vigilant cost oversight.
- Potential for integration challenges with existing naval systems.
- Cybersecurity risks associated with C4ISTAR systems.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, c4istar, lcs, sole-source, cost-plus-fixed-fee, l3harris-technologies, philippines, definitive-contract, intelligence-surveillance-reconnaissance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 million to L3HARRIS TECHNOLOGIES, INC.. PHILIPPINES C4ISTAR LCS
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 $5.7 million.
What is the period of performance?
Start: 2025-04-11. End: 2026-04-11.
What is the specific justification for awarding this C4ISTAR LCS contract on a sole-source basis to L3Harris Technologies?
The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source justification. While the specific rationale is not detailed, common reasons for sole-source awards in defense include unique technical capabilities possessed by only one contractor, urgent and compelling needs where competition is impractical, or when a specific system requires follow-on support from the original developer. For this contract, it's possible L3Harris Technologies holds proprietary knowledge or unique intellectual property related to the PHILIPPINES C4ISTAR LCS system, making them the only viable source for the required engineering services. A thorough review of the Justification and Approval (J&A) document, if available, would provide the precise details of the government's rationale for foregoing competition.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and potential cost for the government?
The Cost Plus Fixed Fee (CPFF) contract type is a cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not well-defined or involves significant uncertainty, making it difficult to establish a firm fixed price. For the government, CPFF offers flexibility but carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor has less incentive to control costs beyond what is necessary to complete the work. However, the 'fixed fee' component provides some predictability regarding the contractor's profit. The government's primary mitigation strategy is robust oversight, including detailed cost monitoring and audits, to ensure costs are reasonable and allocable to the contract.
What are the potential implications of a 365-day contract duration for the C4ISTAR LCS project?
A 365-day contract duration suggests a project with a defined, relatively short-term objective. This could indicate a specific phase of a larger development effort, a targeted upgrade, a system sustainment task, or a feasibility study. For the C4ISTAR LCS project, this timeframe implies that the engineering services required are focused and expected to yield results within a year. It may also suggest that the government intends to re-evaluate requirements or explore other solutions after this period. The short duration can be advantageous for managing immediate needs and adapting to evolving technological landscapes, but it might limit the scope of complex, long-term system integration or development efforts.
What is L3Harris Technologies' track record with similar C4ISTAR or naval engineering contracts?
L3Harris Technologies is a well-established defense contractor with extensive experience in C4ISTAR systems, communications, intelligence, surveillance, and reconnaissance technologies. They have a significant history of supporting naval programs and delivering complex engineering solutions. While specific details on their past performance for 'PHILIPPINES C4ISTAR LCS' are not provided, their broad portfolio includes work on various naval platforms, electronic warfare systems, and integrated command and control solutions. Government contract databases and performance reports (like Contractor Performance Assessment Reporting System - CPARS) would typically contain detailed assessments of their past performance on similar contracts, including on-time delivery, cost control, and technical execution.
Are there any known risks associated with the C4ISTAR LCS system itself or its implementation?
The C4ISTAR LCS system, like many advanced defense technologies, can carry inherent risks related to technological maturity, integration complexity, cybersecurity vulnerabilities, and operational effectiveness. Specific risks for this contract would depend on the exact nature of the 'PHILIPPINES C4ISTAR LCS' system and the engineering services being provided. Potential risks could include challenges in integrating new C4ISTAR capabilities with existing naval platforms, ensuring interoperability with allied systems, maintaining the security of sensitive intelligence data, and adapting to evolving threats. The sole-source nature of the award, without competitive validation, might also introduce a risk that potential issues were not identified or addressed through broader market analysis.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003924R4005
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
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: $7,396,465
Exercised Options: $5,810,581
Current Obligation: $5,699,346
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-04-11
Current End Date: 2026-04-11
Potential End Date: 2027-04-11 00:00:00
Last Modified: 2025-12-08
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