L3Harris Technologies awarded $10.4M contract for R&D, highlighting significant investment in physical and engineering sciences
Contract Overview
Contract Amount: $10,441,510 ($10.4M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-29
End Date: 2009-09-30
Contract Duration: 1,097 days
Daily Burn Rate: $9.5K/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: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida 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 through full and open competition, suggesting a robust market. 2. Research and Development focus indicates investment in future capabilities. 3. Cost Plus Fixed Fee pricing structure requires careful monitoring of costs. 4. Contract duration of approximately 3 years provides a stable period for research. 5. Awarded by the Department of Defense, aligning with national security objectives. 6. Small business participation was not a stated requirement, potentially limiting SME involvement.
Value Assessment
Rating: good
The contract value of $10.4 million for a 3-year R&D effort appears reasonable within the context of defense research. Benchmarking against similar R&D contracts in physical and engineering sciences would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain controlled and the fixed fee is justified by the scope and risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 6 bidders (implied by 'no': 6) suggests a healthy level of competition for this R&D requirement. This competitive environment generally favors price discovery and can lead to more favorable terms for the government.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.
Public Impact
The Department of Defense is the primary beneficiary, likely gaining advancements in physical and engineering sciences relevant to its mission. Services delivered include research and development, contributing to technological innovation. The geographic impact is centered in Florida, where L3Harris Technologies is located. Workforce implications include employment for researchers, engineers, and support staff within L3Harris.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not properly managed.
- The lack of specific small business set-aside requirements may limit opportunities for smaller innovative firms in this specific award.
- The duration of the contract, while providing stability, also means a significant commitment of resources over a defined period.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that likely yielded a fair price.
- The R&D focus suggests investment in cutting-edge technology and future capabilities for the Department of Defense.
- L3Harris Technologies is a known entity in the defense sector, implying a degree of established capability and reliability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, where companies like L3Harris Technologies contribute to developing next-generation technologies. Spending in this sector is often characterized by long-term investments and high levels of technical expertise. Comparable spending benchmarks would typically be found within broader defense R&D budgets and specific technology development programs.
Small Business Impact
This contract does not appear to have a small business set-aside. While L3Harris Technologies is a large business, the absence of specific subcontracting requirements for small businesses in the provided data means their participation is not mandated by this award. This could limit the direct flow-down of contract funds to the small business ecosystem for this particular effort.
Oversight & Accountability
Oversight for this contract would primarily be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA), given the agency ('sa') listed. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Physical Sciences Research
- Engineering Sciences Research
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Research and Development outcomes can be uncertain, posing a risk to achieving desired results.
- Limited information on small business subcontracting requirements.
Tags
department-of-defense, research-and-development, l3harris-technologies, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, florida, physical-engineering-life-sciences, large-contractor, national-security
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: 2006-09-29. End: 2009-09-30.
What is L3Harris Technologies' track record with Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?
L3Harris Technologies, and its predecessor companies, have a long history of performing on Department of Defense contracts, including those utilizing Cost Plus Fixed Fee (CPFF) structures. CPFF contracts are common for research and development efforts where the final costs are uncertain. While specific performance metrics for all past CPFF contracts are not publicly detailed, L3Harris is generally recognized as a major defense contractor with extensive experience in complex R&D projects. Their ability to secure significant contracts like this one suggests a satisfactory performance history and capability to manage the complexities inherent in CPFF agreements, which require robust cost accounting and reporting systems to ensure compliance and value for the government.
How does the $10.4 million award compare to other R&D contracts in physical and engineering sciences awarded by the DoD?
The $10.4 million award for this specific R&D effort in physical and engineering sciences is a moderate-sized contract within the broader landscape of Department of Defense R&D spending. The DoD invests billions annually in research and development, with individual contracts ranging from a few million to hundreds of millions of dollars, depending on the scope, complexity, and technological maturity. Contracts for fundamental research or early-stage technology development are often smaller, while those for system development and demonstration tend to be larger. This $10.4 million award likely represents a focused research initiative rather than a large-scale system development, placing it in the mid-range for specialized R&D projects.
What are the primary risks associated with this Cost Plus Fixed Fee contract for the government?
The primary risks for the government with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and ensuring adequate performance for the fixed fee. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. If the government's oversight is insufficient, there's a risk that costs could escalate beyond initial projections, even though the fee is fixed. Another risk is ensuring the contractor is adequately motivated to perform efficiently and effectively to achieve the R&D objectives within the scope. Potential for scope creep, where the research objectives expand without commensurate adjustments to the fee or timeline, also poses a risk. Finally, the inherent uncertainty in R&D means that the desired outcomes may not be fully achieved, regardless of cost or effort.
What is the historical spending pattern for contracts with the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of Defense?
The Department of Defense is consistently one of the largest federal agencies awarding contracts under NAICS code 541710. Historical spending patterns show a significant and sustained investment in R&D across physical, engineering, and life sciences, reflecting the DoD's continuous need for technological superiority. Annual obligations under this code by the DoD typically amount to billions of dollars, fluctuating based on strategic priorities, emerging threats, and budget allocations. This spending supports a wide range of activities, from basic scientific research to applied research and advanced technology development, often involving contracts with large defense contractors, universities, and research institutions.
How does the contract duration of 1097 days (approx. 3 years) impact the assessment of value and risk?
A contract duration of approximately three years (1097 days) for an R&D effort provides a reasonable timeframe for achieving defined research objectives without being excessively long, which could introduce risks of obsolescence or shifting priorities. This duration allows for methodical progress and iterative development typical in R&D. From a value perspective, it enables the government to secure sustained effort towards specific technological goals. For risk, a shorter duration generally reduces the exposure to unforeseen technological challenges or changes in strategic needs compared to much longer contracts. However, it also means that the contractor must achieve significant milestones within this period to demonstrate value realization.
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: 2400 PALM BAY RD NE, PALM BAY, FL, 32905
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-09-29
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2021-11-03
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