DoD Awards $262M Engineering Services Contract to L3Harris Technologies for MET Sustainment Support
Contract Overview
Contract Amount: $262,091,580 ($262.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-21
End Date: 2028-09-30
Contract Duration: 3,084 days
Daily Burn Rate: $85.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MET SUSTAINMENT SUPPORT UCA
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $262.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: MET SUSTAINMENT SUPPORT UCA Key points: 1. Significant contract value of $262M awarded to a single large business. 2. Lack of competition raises questions about potential overpricing and value for taxpayer money. 3. Long contract duration (2020-2028) with a cost-plus fixed fee structure could incentivize cost overruns. 4. Engineering Services sector often involves complex requirements, making oversight crucial.
Value Assessment
Rating: questionable
The contract's cost-plus fixed fee structure, combined with a lack of competition, makes it difficult to assess value. Without competitive bids, it's hard to benchmark pricing against similar services, potentially leading to less favorable terms for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage for the government, potentially resulting in higher costs than if multiple vendors had competed.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds, as the government may be paying a premium.
Public Impact
Taxpayers may be overpaying for engineering services due to the lack of competitive bidding. The long-term nature of the contract could lock the government into potentially suboptimal pricing for years. Limited transparency into the cost drivers for this sole-source award hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation
Positive Signals
- Awarded to a known entity (L3Harris Technologies)
- Contract supports critical sustainment operations
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for supporting complex government operations and infrastructure. Spending benchmarks in this sector vary widely based on project complexity and duration, but competitive procurement is generally preferred to ensure cost-effectiveness.
Small Business Impact
The contract data indicates no small business participation (sb: false). This represents a missed opportunity to leverage the capabilities of small businesses and promote economic diversity within federal contracting.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight to ensure L3Harris Technologies is delivering services efficiently and at a reasonable cost. The Department of Defense must actively monitor expenditures and performance to mitigate risks associated with cost-plus contracts.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type can incentivize overspending.
- Long contract duration increases risk exposure.
- No small business participation noted.
- Potential for vendor lock-in.
Tags
engineering-services, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $262.1 million to L3HARRIS TECHNOLOGIES, INC.. MET SUSTAINMENT SUPPORT UCA
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 $262.1 million.
What is the period of performance?
Start: 2020-04-21. End: 2028-09-30.
What specific factors justified a sole-source award for MET sustainment support, and were alternatives thoroughly explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. For this contract, the government must have determined that L3Harris Technologies was the only viable provider or that competition was not feasible or cost-effective. A thorough review of market research and documented justifications is essential to validate this decision and ensure taxpayer funds are used appropriately.
How is the government ensuring cost control and value for money with a Cost Plus Fixed Fee (CPFF) contract awarded without competition?
With a CPFF contract and no competition, the government relies heavily on stringent oversight, detailed cost accounting, and performance metrics. Regular audits, clear deliverables, and defined fee structures are crucial. The fixed fee provides some incentive for the contractor to control costs, but the government must remain vigilant in verifying the necessity and reasonableness of all incurred costs.
What is the long-term strategy for MET sustainment support, and will future requirements be competed to ensure better pricing?
The long-term strategy should involve planning for future procurements to incorporate competition, thereby driving down costs and fostering innovation. Agencies should conduct market research well in advance of contract expiration to identify potential competitors and develop strategies for competitive solicitations. This ensures that the government benefits from market dynamics and avoids prolonged sole-source arrangements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W52P1J19R0136
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2400 PALM BAY RD 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: $262,096,092
Exercised Options: $262,096,092
Current Obligation: $262,091,580
Actual Outlays: $15,447,717
Subaward Activity
Number of Subawards: 249
Total Subaward Amount: $37,167,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-04-21
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-12-15
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