DoD's $73.7M contract for NT L IMAGERY & MA, MICRO PURCHAS awarded to HARRIS CORPORATION in 1998 shows long-term performance

Contract Overview

Contract Amount: $73,715,873 ($73.7M)

Contractor: L3harris Technologies, Inc

Awarding Agency: Department of Defense

Start Date: 1998-01-12

End Date: 2010-10-15

Contract Duration: 4,659 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199805!9700!1051!ZM21 !NT L IMAGERY & MA, MICRO PURCHAS!NMA10097C5001 !A!*!P00013 !19980112!19991231!004203337!004203337!004203337!N!64755!HARRIS CORPORATION !1025 W NASA BLVD !MELBOURNE !FL!32919!43975!009!12!MELBOURNE !BREVARD !FLORIDA !0001!+000005000000!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !7373!3!*!*!C!B!A!*!A !N!R!2!005!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $73.7 million to L3HARRIS TECHNOLOGIES, INC for work described as: 199805!9700!1051!ZM21 !NT L IMAGERY & MA, MICRO PURCHAS!NMA10097C5001 !A!*!P00013 !19980112!19991231!004203337!004203337!004203337!N!64755!HARRIS CORPORATION !1025 W NASA BLVD !MELBOURNE !FL!32919!43975!009!12!MELBOURNE !BREVAR… Key points: 1. The contract's duration of over 12 years suggests a sustained need for the services or products provided. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The cost-plus-award-fee (CPAF) structure allows for flexibility but requires careful oversight to ensure value. 4. The significant duration and value may indicate a critical or complex requirement within the Defense sector. 5. The contractor, HARRIS CORPORATION, has a substantial history with the Department of Defense, implying established capabilities. 6. The contract's classification as a definitive contract suggests a clear scope of work and terms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of 'NT L IMAGERY & MA, MICRO PURCHAS'. However, the total award amount of $73.7 million over more than a decade suggests a substantial investment. The cost-plus-award-fee (CPAF) pricing structure, while common for complex R&D or services where costs are hard to predict, can lead to higher overall costs if not managed tightly. Without specific performance metrics or comparable contract data from the late 1990s and early 2000s, a precise value-for-money assessment is difficult, but the extended duration implies continued utility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 5 bids indicates a degree of competition. While the specific details of the bidding process and the number of bidders are not fully elaborated, full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiary is the Department of Defense, which receives critical imagery and related services. The contract supports national security objectives by ensuring access to essential intelligence and data. The geographic impact is likely global, given the nature of military operations and intelligence gathering. Workforce implications include employment for personnel involved in imagery analysis, data management, and potentially hardware/software development at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-award-fee structure requires diligent oversight to prevent cost overruns and ensure performance targets are met.
The long duration of the contract could indicate a lack of readily available alternative solutions or a deeply embedded relationship with the incumbent, potentially limiting future competition.
Specific details on performance metrics and award fee criteria are not readily available, making it difficult to assess the effectiveness of the award fee component.
The nature of 'NT L IMAGERY & MA, MICRO PURCHAS' is vague, potentially obscuring the true scope and risks associated with the contract.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contractor, HARRIS CORPORATION (now L3HARRIS TECHNOLOGIES, INC), has a long-standing presence and experience with the Department of Defense, indicating reliability and expertise.
The contract's extended performance period (over 12 years) implies sustained value and successful delivery of required services or products.
The definitive contract type suggests a well-defined scope of work and clear contractual terms.

Sector Analysis

This contract falls within the broader Defense sector, specifically related to intelligence, information technology, and potentially advanced manufacturing or research and development. The market for such services is characterized by high barriers to entry due to security clearances, specialized expertise, and significant R&D investment. Comparable spending benchmarks are difficult to establish without more specific details on the 'NT L IMAGERY & MA, MICRO PURCHAS' scope, but defense intelligence and imagery contracts can range from millions to billions of dollars annually.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary awardee is a large corporation, and the nature of the services likely requires specialized capabilities typically found in larger firms. Further investigation into subcontracting plans would be needed to determine any impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA). As a cost-plus-award-fee contract, rigorous oversight of incurred costs and performance against award criteria would be essential. Transparency is limited by the classified or sensitive nature of defense intelligence contracts. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Contracts
Defense Research, Development, Test, and Evaluation (RDT&E)
Information Technology Services for Defense
Advanced Manufacturing and Procurement for Defense

Risk Flags

Long contract duration may indicate potential for vendor lock-in.
Cost-plus-award-fee structure requires robust oversight to ensure value.
Vague contract description limits detailed analysis of scope and risk.
Significant increase in contract value over time warrants scrutiny of modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.7 million to L3HARRIS TECHNOLOGIES, INC. 199805!9700!1051!ZM21 !NT L IMAGERY & MA, MICRO PURCHAS!NMA10097C5001 !A!*!P00013 !19980112!19991231!004203337!004203337!004203337!N!64755!HARRIS CORPORATION !1025 W NASA BLVD !MELBOURNE !FL!32919!43975!009!12!MELBOURNE !BREVARD !FLORIDA !0001!+000005000000!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !7373!3!*!*!C!B!A!*!A !N!R!2!0

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 $73.7 million.

What is the period of performance?

Start: 1998-01-12. End: 2010-10-15.

What specific types of imagery and related services were procured under this contract?

The contract description 'NT L IMAGERY & MA, MICRO PURCHAS' is quite broad. 'NT L' likely refers to the National Reconnaissance Office (NRO) or a similar intelligence agency, and 'IMAGERY & MA' suggests the procurement of imagery data and potentially related analysis or management services. 'MICRO PURCHAS' could imply smaller, more frequent procurements within the larger contract vehicle. Without access to the detailed contract statement of work (SOW) or specific task orders, the precise nature of the imagery (e.g., satellite, aerial, signals intelligence) and the associated services (e.g., processing, exploitation, dissemination, hardware/software) remain unspecified. This ambiguity makes it difficult to fully assess the contract's technical scope and its alignment with evolving intelligence requirements.

How did the performance of HARRIS CORPORATION compare to the award fee criteria, and what was the total amount paid out in award fees?

Information regarding the specific performance metrics, the criteria for the award fee, and the actual amounts paid out in award fees is not publicly available for this contract. Cost-plus-award-fee (CPAF) contracts are designed to incentivize contractor performance by providing additional profit based on achieving or exceeding defined objectives. The effectiveness of this incentive structure hinges on well-defined, measurable, and relevant performance standards. Without this data, it's impossible to determine if the government received exceptional value or if the award fees were justified based on superior performance. This lack of transparency limits a thorough assessment of the contractor's performance and the overall value realized from the award fee component.

What was the initial estimated cost versus the final obligated amount, and were there significant contract modifications?

The provided data indicates an initial award amount (likely obligated) of $19,980,597, with a total value reaching $73,715,873. This suggests significant growth in the contract's value over its lifespan, potentially through modifications, exercise of options, or increased funding. The difference between the initial and final amounts is substantial ($53,735,276), representing a significant increase. Analyzing the nature and frequency of contract modifications would be crucial to understanding why the contract value grew so substantially. Were these changes due to scope expansion, unforeseen requirements, or potentially less efficient initial planning? Understanding these modifications is key to assessing the contract's financial management and overall value.

How does the per-unit cost, if discernible, compare to industry benchmarks for similar imagery or data services during the contract period?

Determining a meaningful 'per-unit cost' for this contract is extremely challenging due to the broad and potentially classified nature of 'NT L IMAGERY & MA, MICRO PURCHAS'. Unlike standardized goods, imagery and related intelligence services often lack easily quantifiable units of measure that are consistently priced across the industry. Factors such as resolution, geographic coverage, data type (e.g., optical, radar, signals), processing level, and timeliness all influence cost. Furthermore, the contract spanned over a decade, during which technology and market prices evolved significantly. Without specific task orders detailing the units procured (e.g., number of images, hours of analysis, data processing volume) and their associated pricing, a direct comparison to industry benchmarks is not feasible.

What was the historical spending trend for this specific type of service or product category within the Department of Defense prior to and during this contract's period of performance?

Analyzing historical spending trends for 'NT L IMAGERY & MA, MICRO PURCHAS' is difficult due to the contract's specific and potentially classified designation. However, the Department of Defense has consistently allocated substantial budgets towards intelligence, surveillance, and reconnaissance (ISR) capabilities, including imagery acquisition and analysis. Spending in this area generally increased significantly in the post-9/11 era. This contract, awarded in 1998 and extending through 2010, falls within a period of evolving intelligence needs. While precise historical data for this exact contract description is unavailable, broader trends show a sustained and growing investment in intelligence gathering and processing technologies and services by the DoD throughout the contract's lifecycle.

Were there any notable performance issues, contract disputes, or termination actions associated with this contract?

The provided summary data does not indicate any formal contract disputes, significant performance issues leading to termination, or other major adverse actions related to this contract. The contract was awarded in 1998 and its period of performance extended until October 15, 2010, suggesting a relatively stable and continuous relationship between the government and HARRIS CORPORATION. The fact that it ran for its full duration, or close to it, typically implies that the contractor met its obligations sufficiently to warrant continued funding and performance. However, the absence of publicly reported disputes does not preclude minor performance disagreements or challenges that were resolved internally.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1025 W NASA BLVD, MELBOURNE, FL, 32919

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline