DoD's $21.6M Next Generation Range Support Aircraft contract awarded to L3Harris

Contract Overview

Contract Amount: $21,596,537 ($21.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2007-05-31

End Date: 2011-05-31

Contract Duration: 1,461 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEXT GENERATION RANGE SUPPORT AIRCRAFT

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: NEXT GENERATION RANGE SUPPORT AIRCRAFT Key points: 1. Contract awarded to L3Harris Technologies Integrated Systems L.P. for $21.6 million. 2. The contract falls under the Aircraft Manufacturing NAICS code 336411. 3. Full and open competition was utilized for this award. 4. The contract duration was 1461 days, ending in 2011. 5. This award was not set-aside for small businesses.

Value Assessment

Rating: fair

The contract type was Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The awarded amount of $21.6 million for a 4-year period needs further analysis against similar aircraft development and manufacturing contracts to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and the number of bids received are not detailed, making it difficult to assess the effectiveness of price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering competitive pricing. The final cost relative to the initial estimates and market benchmarks would determine the ultimate taxpayer impact.

Public Impact

This contract supports the Department of Defense's aviation capabilities. The aircraft manufactured likely serves critical training or operational support roles. The award signifies investment in advanced aerospace manufacturing within the US. The duration suggests a significant development or production phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of detailed pricing data makes value assessment difficult.
No small business participation noted.

Positive Signals

Awarded under full and open competition.
Supports critical defense aviation needs.
Awarded to a known industry player.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically Aircraft Manufacturing. Spending in this sector is driven by national security requirements and technological advancements. Benchmarks for similar aircraft development and production contracts would be necessary for a precise comparison.

Small Business Impact

The data indicates that this contract was not set-aside for small businesses. This suggests that the scope of work or the prime contractor's strategy did not prioritize small business participation as subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the effectiveness of this oversight in controlling costs and ensuring performance under the CPFF structure requires further investigation.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Lack of detailed performance and cost data.
Long contract duration without clear final cost reporting.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. NEXT GENERATION RANGE SUPPORT AIRCRAFT

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2007-05-31. End: 2011-05-31.

What was the final cost compared to the initial target cost for this CPFF contract, and how did it align with industry benchmarks for similar aircraft programs?

Assessing the final cost against the target cost is crucial for understanding the effectiveness of the Cost Plus Fixed Fee structure in this instance. Without this comparison and benchmark data against similar aircraft programs, it's difficult to definitively state whether taxpayers received excellent value or if costs were significantly higher than anticipated.

Given the CPFF structure and the 4-year duration, what were the primary risks identified during contract execution, and how were they mitigated by the DCMA?

The primary risks associated with a CPFF contract often revolve around cost control and potential for scope creep. For this program, risks likely included unforeseen technical challenges in aircraft development, material cost fluctuations, and ensuring the contractor maintained efficiency. Mitigation strategies would typically involve rigorous monitoring of expenditures, regular performance reviews, and proactive engagement by DCMA to address issues before they escalated.

How effectively did the full and open competition process ensure competitive pricing for the Next Generation Range Support Aircraft, and what was the ultimate impact on program cost?

While full and open competition is designed to foster competitive pricing, its effectiveness hinges on the number and quality of bids received, as well as the specific evaluation criteria. Without detailed bid data, it's challenging to quantify the competitive pressure exerted. The ultimate impact on program cost would be determined by comparing the final contract value against independent cost estimates and the pricing of comparable aircraft programs.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6893606R0008

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 7500 MAEHR RD, WACO, TX, 17

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

Financial Breakdown

Contract Ceiling: $79,611,322

Exercised Options: $42,303,324

Current Obligation: $21,596,537

Contract Characteristics

Cost or Pricing Data: NO

Timeline