L3Harris Technologies awarded $26M R&D contract for physical, engineering, and life sciences research
Contract Overview
Contract Amount: $26,023,834 ($26.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-25
End Date: 2015-09-30
Contract Duration: 2,745 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 57-1052-07
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $26.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 57-1052-07 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development focus aligns with strategic government investment in innovation. 3. Definitive contract type indicates a long-term agreement for specific services. 4. Cost Plus Fixed Fee pricing structure may incentivize efficiency while managing risk. 5. Contract duration of over 7 years suggests a significant project scope. 6. Performance occurred primarily in New Jersey, indicating regional economic impact.
Value Assessment
Rating: good
The contract value of approximately $26 million over its 7-year duration represents a moderate investment in R&D. Benchmarking this against similar large-scale R&D contracts is challenging without more specific project details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, requires careful oversight to ensure value for money, as it allows for cost reimbursement plus a fixed fee. The absence of specific performance metrics makes a definitive value assessment difficult, but the competitive award process suggests a reasonable price was negotiated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The fact that it was competed suggests a healthy market for the specialized R&D services required. While the number of bidders is not specified, full and open competition generally leads to better price discovery and a wider range of innovative solutions being considered by the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a broader pool of contractors to vie for government work, potentially leading to more cost-effective outcomes.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring advanced research in physical, engineering, and life sciences. The contract facilitated the delivery of critical research and development services, contributing to technological advancement. Geographic impact is concentrated in New Jersey, where the contractor is located. Workforce implications include employment for scientists, engineers, and support staff involved in the R&D activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The long duration of the contract may present challenges in adapting to evolving research needs.
- Limited public information on specific research outcomes makes assessing ultimate impact difficult.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- The contract supports critical research and development, aligning with national strategic goals.
- A definitive contract structure provides clarity on the scope of work and deliverables.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for government investment, driving innovation and technological superiority. The market for such R&D services is often characterized by specialized expertise and significant intellectual property. Comparable spending benchmarks would depend heavily on the specific scientific domain and the scale of the research undertaken.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large definitive contract awarded to L3Harris Technologies, Inc., it is unlikely that small businesses would be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors, depending on L3Harris's subcontracting plan and the specific needs of the research project. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. Accountability measures are inherent in the CPFF structure, requiring justification of costs and achievement of milestones. Transparency is generally limited for R&D contracts due to the sensitive nature of the research, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Physical Sciences Research
- Engineering Sciences Research
- Life Sciences Research
Risk Flags
- Long contract duration may increase risk of obsolescence.
- CPFF structure requires diligent cost oversight.
- Limited public data on specific research outcomes.
Tags
research-and-development, department-of-defense, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, l3harris-technologies, new-jersey, physical-sciences, engineering-sciences, life-sciences, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to L3HARRIS TECHNOLOGIES, INC.. 57-1052-07
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 $26.0 million.
What is the period of performance?
Start: 2008-03-25. End: 2015-09-30.
What specific research areas were covered under this contract?
The contract's North American Industry Classification System (NAICS) code, 541712, specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' This broad classification suggests the research could encompass a wide range of disciplines, potentially including materials science, aerospace engineering, advanced manufacturing processes, environmental science, or biomedical engineering research not directly related to biotechnology. Without access to the detailed SOW (Statement of Work) or specific task orders issued under this definitive contract, the precise research topics remain undisclosed in the provided data. However, the duration and value suggest a substantial and potentially multi-faceted research endeavor.
How does the $26 million award compare to typical R&D spending in this sector?
The $26 million award for R&D over a 7-year period (approximately $3.7 million per year) is a moderate-sized contract within the broader federal R&D landscape. Large federal agencies, particularly the Department of Defense, invest billions annually in R&D across various scientific domains. For instance, defense R&D spending often includes much larger programs in areas like advanced weaponry, cybersecurity, and space technology. However, for specific, focused research projects in physical, engineering, or life sciences, $26 million can represent a significant investment, enabling in-depth investigation and development. Benchmarking requires comparing it to contracts with similar NAICS codes and project scopes, which are not detailed here.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where the scope may evolve, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed, and the fee is fixed regardless of the final cost. This can lead to cost overruns if the contractor's initial estimates are inaccurate or if project complexities increase. For the contractor, there's a risk that the fixed fee may not adequately compensate them if unforeseen challenges lead to significantly higher costs than anticipated. Effective oversight, clear definition of allowable costs, and robust progress monitoring are crucial to mitigate these risks and ensure value for taxpayer money.
What is the significance of L3Harris Technologies, Inc. being the sole awardee?
L3Harris Technologies, Inc. being the sole awardee for this $26 million contract, following a full and open competition, suggests they were deemed the most qualified or best-suited entity to perform the required research and development. This could be due to their specialized expertise, existing technological capabilities, proprietary knowledge, or a superior technical proposal that offered the best value. While full and open competition implies multiple entities could bid, the final selection of one contractor indicates a high degree of specificity in the government's requirements or a significant competitive advantage held by L3Harris in this particular instance. It underscores the importance of contractor qualifications and proposal evaluation in the procurement process.
How does the contract's duration (2745 days) impact its overall value and risk?
The contract duration of 2745 days, approximately 7.5 years, signifies a long-term commitment to a specific research and development effort. This extended timeline allows for deep exploration and development within the chosen scientific fields. From a value perspective, it suggests a substantial project scope that requires sustained effort and investment. However, such a long duration also introduces risks. Scientific and technological landscapes can change rapidly, potentially making the initial research objectives obsolete or requiring significant pivots. Managing such a long-term project requires adaptive planning, continuous re-evaluation of goals, and strong program management to ensure the research remains relevant and valuable throughout its lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,289,321
Exercised Options: $26,289,321
Current Obligation: $26,023,834
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-03-25
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2021-11-03
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