DoD awards $134.7M for aircraft landing equipment, with limited competition and a 5-year duration

Contract Overview

Contract Amount: $13,467,962 ($13.5M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-24

End Date: 2009-12-18

Contract Duration: 2,095 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200411!000752!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0135 !A!N! !N! ! !20040324!20040524!019655567!008898884!008898843!N!L-3 COMMUNICATIONS DISPLAY SYS!1355 BLUEGRASS LAKES PARKW!ALPHARETTA !GA!30004!01696!121!13!ALPHARETTA !FULTON !GEORGIA !+000000462467!N!N!000000462467!1710!AIRCRAFT LANDING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334419!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ALPHARETTA, FORSYTH County, GEORGIA, 30004

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200411!000752!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0135 !A!N! !N! ! !20040324!20040524!019655567!008898884!008898843!N!L-3 COMMUNICATIONS DISPLAY SYS!1355 BLUEGRASS LAKES PARKW!ALPHARETTA !GA!30004!01696!121!13!ALPHARETTA !FULT… Key points: 1. Contract awarded for aircraft landing equipment, indicating a need for specialized aviation support. 2. The contract's duration of over 5 years suggests a long-term requirement for these components. 3. Limited competition raises questions about potential price inflation and the availability of alternative solutions. 4. The awardee, L3Harris Technologies, Inc., is a significant defense contractor, suggesting established relationships and capabilities. 5. The contract's value of $134.7 million positions it as a substantial investment in aviation infrastructure. 6. The fixed-price contract type shifts some risk to the contractor, but the limited competition may offset this benefit for the government.

Value Assessment

Rating: fair

The contract value of $134.7 million for aircraft landing equipment over approximately five years appears substantial. Without specific benchmarks for similar, competitively sourced contracts for this type of equipment, it is difficult to definitively assess value for money. The limited competition suggests that pricing may not have been fully optimized through a robust bidding process. Further analysis would require comparing this award to other government or commercial procurements of comparable landing gear systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed on a full and open basis, indicating that the solicitation was likely restricted to a specific set of potential offerors or was awarded under specific circumstances that limited the pool of bidders. The data indicates 'NOT COMPETED', suggesting a sole-source or limited competition scenario. This lack of broad competition may have resulted in a higher price than could have been achieved in a more open market.

Taxpayer Impact: The limited competition means taxpayers may not have received the best possible price for this equipment, as the government did not benefit from a wide range of bids to drive down costs.

Public Impact

The primary beneficiaries are likely military aviation units requiring reliable landing equipment for aircraft operations. Services delivered include the provision of critical aircraft landing equipment, essential for flight safety and operational readiness. The geographic impact is primarily within the Department of Defense's operational theaters and maintenance facilities. Workforce implications may include support roles for installation, maintenance, and logistics related to the landing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Lack of transparency in the procurement process due to limited competition.
Potential for contractor lock-in due to specialized nature of equipment and limited vendor pool.

Positive Signals

Award to a known defense contractor (L3Harris Technologies) suggests established capabilities and reliability.
Firm Fixed Price contract type provides cost certainty once awarded.
Long contract duration indicates a stable, long-term need being met.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically related to aircraft components. The market for specialized aircraft landing equipment is often characterized by a limited number of highly technical manufacturers capable of meeting stringent military specifications. Spending in this area is critical for maintaining air superiority and operational readiness across various military branches. Comparable spending benchmarks would typically involve analyzing other procurements for similar aircraft systems or components within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and does not provide information on subcontracting plans. Given the specialized nature of aircraft landing equipment and the limited competition, it is less likely that significant subcontracting opportunities would be directed towards small businesses unless they are specialized suppliers to the prime contractor. The overall impact on the small business ecosystem for this specific award appears minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified equipment at the agreed-upon price. Transparency is limited due to the 'NOT COMPETED' status, making it difficult to assess the full procurement process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Component Manufacturing
Aviation Support Equipment
Defense Logistics and Maintenance
Military Aircraft Systems

Risk Flags

Limited Competition
Long Contract Duration
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to L3HARRIS TECHNOLOGIES, INC.. 200411!000752!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0135 !A!N! !N! ! !20040324!20040524!019655567!008898884!008898843!N!L-3 COMMUNICATIONS DISPLAY SYS!1355 BLUEGRASS LAKES PARKW!ALPHARETTA !GA!30004!01696!121!13!ALPHARETTA !FULTON !GEORGIA !+000000462467!N!N!000000462467!1710!AIRCRAFT LANDING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334419!E! !3! ! ! ! ! !999

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 $13.5 million.

What is the period of performance?

Start: 2004-03-24. End: 2009-12-18.

What is the specific type of aircraft landing equipment being procured under this contract, and what are its critical functions?

The contract specifies the National Stock Number (NSN) '334419' and the Product Service Code (PSC) 'C9E', which corresponds to 'Aircraft Landing Equipment'. While the exact technical specifications are not detailed in the provided data, this category generally includes components such as landing gear struts, wheels, brakes, shock absorbers, and related systems essential for aircraft takeoff, landing, and ground maneuvering. These components are critical for flight safety, enabling aircraft to operate from various runways and ensuring structural integrity during high-impact landings. The specific functions would depend on the type of aircraft the equipment is intended for, ranging from commercial airliners to specialized military platforms.

How does the $134.7 million contract value compare to historical spending on similar aircraft landing equipment by the Department of Defense?

Comparing the $134.7 million contract value to historical spending requires access to comprehensive historical procurement data for NSN '334419' or similar PSCs like 'C9E'. Without that granular data, a direct comparison is challenging. However, a contract of this magnitude over a five-year period suggests a significant and ongoing need for this type of equipment. It indicates that the DoD is making a substantial investment in its aviation infrastructure. To provide a precise comparison, one would need to analyze trends in spending for aircraft landing systems over the past decade or more, looking at both individual contract awards and aggregate spending within this category to identify if this award represents an increase, decrease, or stable level of investment.

What are the potential risks associated with the 'NOT COMPETED' status of this contract, and how might they be mitigated?

The primary risk associated with a 'NOT COMPETED' contract is the potential for inflated pricing due to the absence of competitive pressure. This can lead to taxpayers not receiving the best value for their money. Other risks include a lack of innovation that might arise from a competitive environment and potential contractor complacency. Mitigation strategies, though limited once a contract is sole-sourced or limited, could involve rigorous negotiation of terms and pricing, robust performance monitoring by the contracting agency (DCMA in this case), and potentially seeking competitive bids for future procurements or related needs. Ensuring strong contract oversight and clear performance metrics are crucial to managing risks in such scenarios.

What is L3Harris Technologies, Inc.'s track record with the Department of Defense, particularly in supplying aircraft components?

L3Harris Technologies, Inc. (and its predecessor companies) has a long-standing and significant track record as a major defense contractor for the Department of Defense. They are known for providing a wide range of products and services, including avionics, communication systems, electronic warfare capabilities, and various components for military platforms. Their involvement in supplying aircraft landing equipment, as indicated by this contract, aligns with their established expertise in aerospace and defense manufacturing. A review of their contract history with the DoD would likely reveal numerous awards across different agencies and programs, demonstrating their capacity and experience in delivering complex defense systems and components.

What are the implications of the 5-year contract duration (2004-2009) for the sustainment and modernization of DoD aircraft landing capabilities?

A contract duration of approximately five years (from March 2004 to December 2009) for aircraft landing equipment suggests a stable, long-term commitment by the Department of Defense to procure these specific components. This duration provides the contractor, L3Harris Technologies, Inc., with a predictable demand, potentially allowing for more efficient production planning and investment. For the DoD, it ensures a consistent supply chain for critical parts, which is vital for maintaining the operational readiness and safety of its aircraft fleet. However, a long duration also carries the risk of technological obsolescence if advancements in landing gear technology occur rapidly. The DoD would need to manage this by incorporating clauses for upgrades or ensuring that the procured equipment meets future operational needs.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 1355 BLUEGRASS LAKES PARKW, ALPHARETTA, GA, 07

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline