DoD's $57M EA-18G Retrofit Contract Awarded to L3Harris Technologies Under Sole Source Justification

Contract Overview

Contract Amount: $57,023,388 ($57.0M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-22

End Date: 2022-11-30

Contract Duration: 2,079 days

Daily Burn Rate: $27.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FCNS EA-18G RETROFIT

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $57.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: FCNS EA-18G RETROFIT Key points: 1. Contract value of $57 million for EA-18G Growler retrofit services. 2. Sole-source award to L3Harris Technologies, raising questions about competition. 3. Contract duration of 2079 days (approx. 5.7 years) indicates a long-term need. 4. Firm Fixed Price contract type suggests cost certainty for the government. 5. No small business set-aside, potentially limiting opportunities for smaller firms. 6. Awarded by the Department of the Navy, indicating a specific defense requirement.

Value Assessment

Rating: fair

The contract value of $57 million for EA-18G retrofit services appears substantial. Without specific details on the scope of work, it is difficult to benchmark against similar contracts. The firm fixed-price nature provides cost predictability, but the lack of competition could mean the government did not secure the best possible pricing. Further analysis would require understanding the specific technical requirements and market rates for such specialized retrofitting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies, was considered. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The lack of competition means that the government did not benefit from a competitive bidding process, which could have led to lower prices or more innovative solutions from multiple vendors.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing the requirement, there is less assurance that the price reflects fair market value.

Public Impact

The primary beneficiaries are the U.S. Navy's EA-18G Growler fleet, ensuring their continued operational readiness and technological relevance. Services delivered include retrofitting aircraft with necessary upgrades and modifications. The geographic impact is primarily within Florida, where the contract was awarded and likely performed. Workforce implications include skilled labor in aerospace manufacturing and maintenance within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially innovation.
Lack of small business participation may exclude specialized smaller firms.
Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to an established contractor suggests technical capability.
Focus on EA-18G retrofit addresses critical defense modernization needs.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high barriers to entry, significant R&D investment, and long product development cycles. Contracts like this, for specialized aircraft modifications, are common within the Defense Industrial Base. The EA-18G Growler is a critical electronic warfare platform for the U.S. Navy, and maintaining its technological edge through retrofitting is essential. Spending benchmarks for similar complex aircraft modifications can vary widely based on the scope and technology involved.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits the potential for small business involvement. This approach may not leverage the specialized capabilities that some small businesses offer in niche areas of aerospace manufacturing or modification.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules. Transparency is limited due to the sole-source nature and the proprietary aspects of defense contracting. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations.

Related Government Programs

EA-18G Growler Program
Naval Air Systems Command (NAVAIR) Contracts
Electronic Warfare Systems Procurement
Aerospace Manufacturing and Modification Contracts

Risk Flags

Sole Source Justification
Potential Lack of Competition
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.0 million to L3HARRIS TECHNOLOGIES, INC.. FCNS EA-18G RETROFIT

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 $57.0 million.

What is the period of performance?

Start: 2017-03-22. End: 2022-11-30.

What specific technical upgrades or modifications are included in the EA-18G retrofit under this contract?

The provided data does not specify the exact technical upgrades or modifications covered by the $57 million EA-18G retrofit contract awarded to L3Harris Technologies. Typically, such retrofits for advanced platforms like the EA-18G Growler involve integrating new electronic warfare systems, updating communication suites, enhancing sensor capabilities, or improving software and hardware for mission effectiveness. The 'FCNS EA-18G RETROFIT' designation suggests a focus on 'Fleet Common Network Services' or similar modernization efforts aimed at ensuring interoperability and addressing obsolescence. A detailed statement of work (SOW) within the contract documentation would outline the precise scope, deliverables, and technical specifications.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award, as indicated by 'CT: NOT COMPETED', typically stems from specific circumstances outlined in federal acquisition regulations (FAR). For this EA-18G retrofit contract, common justifications could include that L3Harris Technologies possesses unique capabilities, proprietary technology essential for the retrofit, or that the requirement is a follow-on effort to a previous contract where they were the only qualified source. Another possibility is an urgent and compelling need where soliciting bids would cause unacceptable delays. The Department of the Navy would have formally documented and approved this justification, likely citing reasons such as specialized knowledge of the EA-18G's complex systems or specific intellectual property held by L3Harris.

How does the $57 million contract value compare to historical spending on EA-18G modifications or similar defense aircraft retrofits?

Comparing the $57 million contract value requires context regarding the scope and duration of the work. The contract spans approximately 5.7 years (2079 days), suggesting a significant undertaking. Historical spending on EA-18G modifications can vary greatly depending on the specific upgrade package. For instance, major avionics overhauls or integration of new EW suites can cost tens of millions of dollars per aircraft or for a fleet-wide effort. Without knowing the number of aircraft being retrofitted and the complexity of the upgrades, a direct comparison is challenging. However, $57 million for a multi-year, specialized retrofit program for a high-value defense asset like the EA-18G is within the expected range for such complex defense procurements.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk associated with a sole-source contract of this magnitude ($57 million) and duration (over 5 years) is the potential for inflated pricing due to the lack of competitive pressure. The government may not be receiving the best value for its investment. Additionally, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility or innovation. Performance risks also exist; while L3Harris is an established contractor, without the comparative benchmark of competition, ensuring optimal performance and adherence to schedule and quality standards requires robust government oversight and contract management.

What is L3Harris Technologies' track record with the Department of Defense, particularly concerning aircraft modification and electronic warfare systems?

L3Harris Technologies (formed from the merger of L3 Technologies and Harris Corporation) has a substantial and long-standing track record with the Department of Defense, encompassing a wide array of defense electronics, communications, and aerospace systems. They are a significant player in electronic warfare, having developed and supplied numerous systems for various military platforms. Their experience includes integration, modification, and sustainment of complex aircraft systems. Given their established presence and expertise in EW and aerospace, awarding them a sole-source contract for EA-18G retrofits suggests they possess specific, relevant capabilities and a history of successful performance with the DoD in similar domains.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: FIBER OPTIC

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001917R0007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $57,023,388

Exercised Options: $57,023,388

Current Obligation: $57,023,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline