DoD awards $31M to L3Harris for PAAWNS modem production and support, with no competition
Contract Overview
Contract Amount: $30,985,144 ($31.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-16
End Date: 2024-10-31
Contract Duration: 1,598 days
Daily Burn Rate: $19.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PAAWNS AS/AJ MODEM GENERATION II PRODUCTION AND SUPPORT SERVICES.
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PAAWNS AS/AJ MODEM GENERATION II PRODUCTION AND SUPPORT SERVICES. Key points: 1. Significant contract value of $30.99M for communication equipment. 2. Sole-source award to L3Harris Technologies, Inc. raises competition concerns. 3. Contract duration extends to October 2024, indicating long-term need. 4. Cost Plus Fixed Fee contract type may incentivize higher costs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to higher costs if not managed carefully. Benchmarking against similar communication equipment repair and maintenance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a $31M contract means taxpayers may be paying a premium for these services.
Public Impact
Ensures continued operational capability for critical communication systems. Potential for cost overruns due to sole-source, cost-plus contract. Limited visibility into the justification for sole-source procurement. Impacts the ability of other communication equipment providers to secure government contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in procurement justification
Positive Signals
- Supports critical defense communication infrastructure
- Long-term support ensures system readiness
Sector Analysis
This contract falls within the Communication Equipment Repair and Maintenance sector, a critical component of defense operations. Spending benchmarks for sole-source, cost-plus contracts in this area can vary widely, but competition is generally preferred to ensure value.
Small Business Impact
The award to L3Harris Technologies, Inc., a large corporation, does not appear to involve small business participation. This contract does not seem to offer opportunities for small businesses in the communication equipment repair and maintenance sector.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the justification for not competing is robust. Accountability for cost management under the CPFF structure is crucial.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on justification
- No apparent small business involvement
Tags
communication-equipment-repair-and-maint, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to L3HARRIS TECHNOLOGIES, INC.. PAAWNS AS/AJ MODEM GENERATION II PRODUCTION AND SUPPORT SERVICES.
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 $31.0 million.
What is the period of performance?
Start: 2020-06-16. End: 2024-10-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without access to the contract's justification documentation, it's impossible to determine the specific reasons. However, for a contract of this value and duration, a thorough review of market research and a clear rationale for excluding competition are essential for ensuring taxpayer value and accountability.
How will the Department of Defense ensure cost control and prevent overruns under this Cost Plus Fixed Fee contract?
Effective oversight is key to managing Cost Plus Fixed Fee contracts. This includes rigorous monitoring of incurred costs, regular audits, and clear performance metrics. The contracting officer must ensure that L3Harris Technologies, Inc. is incentivized to control costs and that the fixed fee remains appropriate for the scope of work. Regular reporting and communication are vital to identify and mitigate potential cost escalations early.
What is the long-term strategy for acquiring PAAWNS AS/AJ modem generation II production and support services, and will future requirements be competed?
The long-term strategy for acquiring these services is unclear from the provided data. It is crucial for the Department of Defense to outline a plan for future procurements, ideally incorporating competitive strategies to leverage market forces and achieve better value. If the technology or support remains unique, a clear roadmap for potential future sole-source awards or a plan to foster competition should be established and communicated.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $30,985,144
Exercised Options: $30,985,144
Current Obligation: $30,985,144
Actual Outlays: $12,686,058
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J15D0005
IDV Type: IDC
Timeline
Start Date: 2020-06-16
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 12:10:00
Last Modified: 2024-09-05
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