DoD Awards $217.8M Letter Contract for EMARSS-FVM Base to L3Harris Technologies

Contract Overview

Contract Amount: $217,805,429 ($217.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2015-11-23

End Date: 2021-09-30

Contract Duration: 2,138 days

Daily Burn Rate: $101.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF LETTER CONTRACT FOR EMARSS-FVM BASE OF UP TO 7. CURRENT AWARD IS FOR 3 IVMS TO EMARSS-G.

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $217.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: AWARD OF LETTER CONTRACT FOR EMARSS-FVM BASE OF UP TO 7. CURRENT AWARD IS FOR 3 IVMS TO EMARSS-G. Key points: 1. This award is for the base of EMARSS-FVM, with a potential for up to 7 units. 2. The current award is for 3 IVMS to EMARSS-G, indicating a potential expansion or new capability. 3. L3Harris Technologies is the sole awardee, raising questions about competition and price discovery. 4. The contract is for Aircraft Manufacturing, a sector with significant defense spending.

Value Assessment

Rating: questionable

The contract value is substantial at $217.8M. Without comparable contracts or detailed cost breakdowns, assessing its value against similar aircraft manufacturing or specialized system contracts is difficult. The 'letter contract' designation suggests initial stages, potentially with less defined scope and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to L3Harris Technologies. This lack of competition limits price discovery and may result in higher costs for the government compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.

Public Impact

Potential for expanded military surveillance and reconnaissance capabilities with EMARSS-FVM. Impacts the defense industrial base, particularly in aircraft manufacturing and integrated systems. Raises concerns about government procurement practices when sole-source awards are made without clear justification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Letter contract award
Potential for cost overruns due to sole-source nature

Positive Signals

Award to established defense contractor
Potential for critical system upgrade

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for specialized systems like EMARSS-FVM. Defense spending in this area is often characterized by high R&D costs, long development cycles, and significant reliance on a few prime contractors.

Small Business Impact

The awardee, L3Harris Technologies, is a large defense contractor. There is no indication in the provided data whether small businesses were involved as subcontractors or if opportunities were made available to them.

Oversight & Accountability

The use of a letter contract suggests an initial agreement with the intent to finalize terms later. Oversight will be crucial to ensure the final contract terms are fair and that the government receives value for its investment, especially given the lack of competition.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Letter contract status indicates potential for undefined scope and cost escalation.
High contract value warrants rigorous oversight.
Limited information on system capabilities and differentiation from existing assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $217.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. AWARD OF LETTER CONTRACT FOR EMARSS-FVM BASE OF UP TO 7. CURRENT AWARD IS FOR 3 IVMS TO EMARSS-G.

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $217.8 million.

What is the period of performance?

Start: 2015-11-23. End: 2021-09-30.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government should conduct thorough cost analyses, benchmark against similar systems, and negotiate aggressively. Independent cost estimates and technical reviews are also vital components of oversight in such scenarios.

What are the specific capabilities of the EMARSS-FVM system, and how does it differ from the existing EMARSS-G?

The EMARSS-FVM (Expanded Maritime Reconnaissance and Surveillance - Fixed Wing) is likely designed for enhanced aerial surveillance, potentially with advanced sensors and longer endurance for maritime operations. It differs from EMARSS-G (likely Ground-based) by focusing on fixed-wing aircraft platforms for broader area coverage and potentially different mission sets, such as anti-submarine warfare or long-range patrol.

What is the projected timeline for the full award of up to 7 units, and what are the associated cost implications?

The provided data indicates a base award with a potential for up to 7 units, but the timeline for exercising these options is not specified. The cost implications for the full award could significantly exceed the current $217.8M, depending on the unit price and any additional development or integration costs. A detailed contract roadmap and cost projections are necessary for accurate assessment.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ16R0042

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $260,854,193

Exercised Options: $217,805,429

Current Obligation: $217,805,429

Actual Outlays: $54,330

Subaward Activity

Number of Subawards: 109

Total Subaward Amount: $85,880,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline