DoD awards L3Harris $38.6M for SATCOM terminal sustainment, engineering, and support
Contract Overview
Contract Amount: $38,636,137 ($38.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-22
End Date: 2026-06-21
Contract Duration: 364 days
Daily Burn Rate: $106.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE SUSTAINMENT SUPPORT AND ENGINEERING SERVICES TO SUPPORT SATELLITE COMMUNICATIONS (SATCOM) TERMINALS MANAGED BY THE PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS).
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $38.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PROVIDE SUSTAINMENT SUPPORT AND ENGINEERING SERVICES TO SUPPORT SATELLITE COMMUNICATIONS (SATCOM) TERMINALS MANAGED BY THE PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS). Key points: 1. Contract focuses on sustainment and engineering for Wideband Enterprise Satellite Systems. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. Performance period is one year, suggesting a need for ongoing, but not long-term, support. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. This award is part of a larger strategy to maintain critical satellite communication capabilities. 6. The contractor, L3Harris Technologies, Inc., has a significant presence in the defense sector.
Value Assessment
Rating: good
The total award amount of $38.6 million for a one-year period for sustainment and engineering services appears reasonable given the critical nature of satellite communications. Benchmarking against similar sustainment contracts for complex defense systems suggests this pricing is within expected ranges. The Cost Plus Fixed Fee structure, while allowing for flexibility, requires diligent oversight to ensure value for money and prevent uncontrolled cost growth.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the initial solicitation may have had some restrictions or prior exclusions, the final award was made through a competitive process open to all eligible offerors. The number of bidders is not specified, but the designation implies a robust competition was sought.
Taxpayer Impact: This competitive approach is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best possible value for its investment in critical satellite communication infrastructure.
Public Impact
The Department of Defense (Army) benefits through the continued operational readiness of its satellite communication terminals. Services include sustainment and engineering, ensuring the reliability and performance of vital SATCOM systems. The contract is geographically focused on Florida, where the contractor is based, implying potential local economic impact. This contract supports specialized engineering and technical roles within the defense industrial base.
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 closely monitored.
- The 'exclusion of sources' in the competition type warrants further investigation into any prior limitations.
- Reliance on a single contractor for sustainment of critical systems can create vendor lock-in.
Positive Signals
- Award to an established defense contractor with demonstrated capabilities in SATCOM.
- Full and open competition, even with prior exclusions, suggests an effort to maximize market participation.
- Clear definition of services (sustainment and engineering) provides focus for the contractor.
Sector Analysis
This contract falls within the broader Information Technology and Defense sectors, specifically focusing on satellite communications (SATCOM) technology. The market for SATCOM services and sustainment is highly specialized, with a few key players dominating defense contracts. Spending in this area is driven by the military's increasing reliance on secure, high-bandwidth communication for global operations, intelligence gathering, and command and control. Comparable spending benchmarks would likely be found within other large sustainment contracts for complex defense electronics and communication systems.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of SATCOM sustainment and engineering, it is likely that prime contracting opportunities are concentrated among larger defense firms. However, L3Harris Technologies, Inc. may engage small businesses as subcontractors to fulfill specific components or services, contributing to the broader small business ecosystem within the defense supply chain.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management office within the Department of the Army. Accountability measures will focus on tracking costs against the fixed fee, ensuring performance milestones are met, and verifying the quality of engineering and sustainment services. Transparency is typically maintained through contract reporting requirements and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General.
Related Government Programs
- Satellite Communications Systems
- Defense Communications Infrastructure
- Enterprise IT Sustainment
- Product Manager Wideband Enterprise Satellite Systems (PdM WESS)
- Army Aviation and Missile Command (AMCOM)
Risk Flags
- Cost Overrun Risk (CPFF)
- Technological Obsolescence
- Supply Chain Vulnerability
- Cybersecurity Threats to SATCOM
Tags
defense, department-of-defense, department-of-the-army, satellite-communications, sustainment, engineering-services, cost-plus-fixed-fee, full-and-open-competition, l3harris-technologies, florida, it-services, communications-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to L3HARRIS TECHNOLOGIES, INC.. PROVIDE SUSTAINMENT SUPPORT AND ENGINEERING SERVICES TO SUPPORT SATELLITE COMMUNICATIONS (SATCOM) TERMINALS MANAGED BY THE PRODUCT MANAGER WIDEBAND ENTERPRISE SATELLITE SYSTEMS (PDM WESS).
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $38.6 million.
What is the period of performance?
Start: 2025-06-22. End: 2026-06-21.
What is L3Harris Technologies, Inc.'s track record with similar Department of Defense SATCOM contracts?
L3Harris Technologies, Inc. has a substantial history of providing advanced communication systems, including SATCOM solutions, to the Department of Defense and other government agencies. They are known for their expertise in areas such as airborne and ground-based SATCOM terminals, resilient networking, and electronic warfare. Their portfolio includes numerous contracts for the development, production, and sustainment of complex communication and electronic systems. Analyzing their past performance on similar sustainment and engineering contracts would involve reviewing contract award histories, performance evaluations (e.g., CPARS), and any documented issues or successes related to cost control, schedule adherence, and technical execution. Their established presence suggests a generally positive track record, but specific performance on this particular type of sustainment contract warrants detailed review.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for this type of service?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves research and development, allowing for flexibility. In this case, for sustainment and engineering, it means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government, as costs can fluctuate. However, it can be more advantageous than Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) if the primary goal is not to incentivize specific performance metrics beyond basic completion, or if defining those metrics is difficult. The key risk with CPFF is potential cost overruns if the government's oversight of allowable costs is not rigorous, whereas FFP places cost risk primarily on the contractor.
What are the primary risks associated with the sustainment of satellite communication terminals?
The primary risks associated with the sustainment of satellite communication terminals include technological obsolescence, as SATCOM technology evolves rapidly, potentially rendering existing terminals outdated. There's also the risk of component failure due to the harsh operating environments (space, mobile platforms) and the complexity of the systems. Supply chain disruptions for specialized parts can lead to extended downtime. Furthermore, cybersecurity threats pose a significant risk, as SATCOM networks are critical infrastructure. Ensuring continuous availability and performance requires robust maintenance, timely upgrades, and skilled personnel, all of which carry inherent risks if not managed effectively. The CPFF structure here necessitates close monitoring to mitigate cost risks associated with these sustainment challenges.
How does this contract align with the Department of Defense's broader strategy for satellite communications?
This contract aligns with the Department of Defense's (DoD) ongoing strategy to maintain and modernize its satellite communications capabilities, which are crucial for global operations, intelligence, and command and control. The focus on sustainment and engineering for Wideband Enterprise Satellite Systems (WESS) indicates a commitment to ensuring the reliability and operational readiness of existing, vital infrastructure. As the DoD transitions towards more resilient, secure, and potentially proliferated satellite architectures (e.g., including LEO/MEO constellations), contracts like this ensure the current backbone remains functional and supported. It reflects a balanced approach between maintaining legacy systems and investing in future capabilities, ensuring continuity of essential communication services.
What is the historical spending trend for similar SATCOM sustainment and engineering services within the Department of the Army?
Historical spending trends for similar SATCOM sustainment and engineering services within the Department of the Army (and DoD broadly) have generally shown consistent and significant investment. The reliance on SATCOM for military operations necessitates ongoing funding for maintenance, upgrades, and technical support. Spending often fluctuates based on specific program lifecycles, modernization initiatives, and the emergence of new threats or technological advancements. While specific figures for 'WESS sustainment' require deeper analysis of historical contract databases, the overall trend indicates a sustained, multi-million dollar annual expenditure across various SATCOM programs. Factors like the number of terminals, their complexity, and the service life of the systems directly influence these spending levels. This $38.6M award appears to be a component of this larger, ongoing investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1395 TROUTMAN BLVD NE, PALM BAY, FL, 32905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,825,695
Exercised Options: $53,825,695
Current Obligation: $38,636,137
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T25D0004
IDV Type: IDC
Timeline
Start Date: 2025-06-22
Current End Date: 2026-06-21
Potential End Date: 2026-06-21 12:06:00
Last Modified: 2026-01-15
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)