NASA's $1.04B TAS Development Contract with L3Harris Faces Long Duration and Limited Small Business Participation
Contract Overview
Contract Amount: $1,035,791,035 ($1.0B)
Contractor: L3harris Technologies, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-09-15
End Date: 2039-06-25
Contract Duration: 12,701 days
Daily Burn Rate: $81.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: TAS::80 0122::TAS DEVELOPMENT, MANUFACTURING AND SUPPORT TO WEATHER OBSERVING INSTRUMENT
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46801
State: Indiana Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.04 billion to L3HARRIS TECHNOLOGIES, INC. for work described as: TAS::80 0122::TAS DEVELOPMENT, MANUFACTURING AND SUPPORT TO WEATHER OBSERVING INSTRUMENT Key points: 1. Significant long-term investment of over $1 billion in weather instrument development. 2. L3Harris Technologies, Inc. holds the contract, indicating a single incumbent provider. 3. Potential risk associated with the extended contract duration and lack of small business involvement. 4. The contract falls under Engineering Services, a broad category with varying cost structures.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee structure, while allowing for performance incentives, can lead to cost overruns if not managed tightly. The total award value is substantial, and the long duration raises questions about sustained value and cost-effectiveness over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting an initial competitive process. However, the long duration and single awardee may limit future competitive opportunities and price discovery.
Taxpayer Impact: The substantial investment over nearly 15 years represents a significant allocation of taxpayer funds towards advanced weather technology development.
Public Impact
Enhances national weather observation capabilities, potentially improving forecasting and disaster preparedness. Supports advanced technological development in a critical scientific field. Long-term commitment to a single contractor may limit broader industry innovation and competition.
Waste & Efficiency Indicators
Waste Risk Score: 81 / 10
Warning Flags
- Extended contract duration (over 12 years)
- No reported small business participation
- Cost Plus Award Fee structure can be prone to cost growth
Positive Signals
- Awarded under full and open competition
- Supports critical national infrastructure (weather observation)
- Long-term stability for a key technology provider
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to advanced instrumentation for meteorological purposes. Benchmarks for similar long-term, high-value R&D contracts in aerospace and defense can vary widely based on complexity and technological innovation required.
Small Business Impact
The data indicates no small business participation in this contract. This is a concern as it misses opportunities to foster innovation and growth within the small business sector for critical technology development.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from NASA to ensure performance objectives are met, costs remain controlled, and the technology remains relevant throughout its lifecycle.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Extended contract duration increases risk of obsolescence and cost overruns.
- Lack of small business participation limits innovation and economic opportunity.
- Cost Plus Award Fee structure requires diligent oversight to control spending.
- Single incumbent provider may reduce future competitive pressure.
Tags
engineering-services, national-aeronautics-and-space-administr, in, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.04 billion to L3HARRIS TECHNOLOGIES, INC.. TAS::80 0122::TAS DEVELOPMENT, MANUFACTURING AND SUPPORT TO WEATHER OBSERVING INSTRUMENT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $1.04 billion.
What is the period of performance?
Start: 2004-09-15. End: 2039-06-25.
What specific performance metrics are tied to the 'Award Fee' component, and how effectively has L3Harris met these metrics historically?
The 'Award Fee' component is designed to incentivize superior performance beyond basic contract requirements. NASA likely establishes specific metrics related to technical achievement, schedule adherence, and cost control. Analyzing historical award fee payouts would reveal how effectively L3Harris has met these targets and whether the fee structure is driving optimal value for the government.
Given the 15-year duration, what mechanisms are in place to ensure the technology remains current and doesn't become obsolete?
Long-term contracts often include provisions for technology refresh, phased upgrades, or periodic reviews to assess technological relevance. NASA likely has milestones or review periods built into the contract to evaluate the evolving technological landscape and ensure the TAS system remains state-of-the-art or is updated accordingly, potentially through contract modifications or new competitive efforts.
What was the rationale for awarding such a long-term contract under full and open competition, and were there specific justifications for not breaking it into smaller, more frequent procurements?
The rationale for a long-term contract typically stems from the need for sustained development, complex integration, and long-term support of highly specialized systems. Breaking it down might disrupt continuity, increase administrative burden, and potentially lead to higher overall costs due to fragmented efforts. NASA likely determined that a single, long-term award was the most efficient and effective approach for this specific weather observing instrument development.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFP5-32601/GFM
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1919 W COOK RD, FORT WAYNE, IN, 46801
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,068,784,399
Exercised Options: $1,068,784,399
Current Obligation: $1,035,791,035
Actual Outlays: $94,293,272
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2004-09-15
Current End Date: 2039-06-25
Potential End Date: 2039-06-25 00:00:00
Last Modified: 2026-02-05
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