DoD's $10.36M R&D Contract with L3Harris Technologies: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $10,362,748 ($10.4M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-29
End Date: 2009-10-04
Contract Duration: 1,193 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to L3HARRIS TECHNOLOGIES, INC. for work described as: Key points: 1. Contract awarded to L3Harris Technologies, Inc. for R&D services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was 1193 days, indicating a significant project scope. 4. Primary sector appears to be Research and Development, with a specific NAICS code of 541710. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, carries inherent risks of cost escalation. Without detailed performance metrics or cost breakdowns, it's difficult to definitively assess value against the $10.36M awarded.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the CPFF structure means the final cost is not fixed upfront, potentially impacting the ultimate value achieved through the competitive process.
Taxpayer Impact: Taxpayer funds are utilized for R&D, with the effectiveness and efficiency of spending dependent on project outcomes and cost management under the CPFF structure.
Public Impact
This contract supports advanced research and development, potentially leading to technological advancements for the Department of Defense. The significant investment highlights the DoD's commitment to innovation in physical, engineering, and life sciences. Public scrutiny of CPFF contracts is important to ensure efficient use of taxpayer dollars in R&D projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics makes value assessment challenging.
- Long contract duration may increase risk of scope creep or changing requirements.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a known entity in the defense sector.
- Supports critical R&D for national security.
Sector Analysis
The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is crucial for technological advancement but requires careful oversight due to its inherent uncertainties and potential for cost growth.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), suggesting a level of oversight. However, the CPFF structure necessitates vigilant monitoring of costs and performance to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (1193 days).
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to L3HARRIS TECHNOLOGIES, INC.. See the official description on USAspending.
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 $10.4 million.
What is the period of performance?
Start: 2006-06-29. End: 2009-10-04.
How effectively were the R&D objectives met within the $10.36M budget, considering the CPFF structure?
Assessing effectiveness requires detailed project reports and performance metrics, which are not provided. The CPFF structure allows for costs to exceed initial estimates, making it crucial to evaluate if the R&D outcomes justified the final expenditure. Without this data, a definitive judgment on value for money is challenging.
What were the primary risks associated with this R&D project, and how were they mitigated by the DoD and L3Harris?
Key risks likely included technical feasibility, evolving research landscapes, and cost overruns inherent in CPFF contracts. Mitigation strategies would typically involve robust project management, regular progress reviews, and clear communication channels between the agency and L3Harris to address challenges proactively and manage scope.
To what extent did the full and open competition ensure the best possible outcome and price for this specific R&D requirement?
Full and open competition generally promotes a competitive environment, potentially leading to better pricing and innovative solutions. However, for specialized R&D, the 'best' outcome is often defined by technical merit and innovation rather than solely lowest cost. The CPFF structure means the final price wasn't fixed, so the 'best price' aspect is less straightforward.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 1680 UNIVERSITY AVE, ROCHESTER, NY, 14610
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $467,000
Exercised Options: $467,000
Current Obligation: $10,362,748
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-06-29
Current End Date: 2009-10-04
Potential End Date: 2009-10-04 00:00:00
Last Modified: 2021-11-03
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