Commerce Awards $70.7M Cloud Compute Task Order to L3Harris for NOAA

Contract Overview

Contract Amount: $70,682,379 ($70.7M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-11-04

End Date: 2028-04-30

Contract Duration: 1,273 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GGSS TASK ORDER 05 - GEO CLOUD COMPUTE SUBSYSTEM

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32902

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $70.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: GGSS TASK ORDER 05 - GEO CLOUD COMPUTE SUBSYSTEM Key points: 1. Significant award for cloud computing services to support NOAA's mission. 2. L3Harris Technologies secures a substantial contract, indicating strong capabilities. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The contract spans over four years, indicating a long-term need. 5. Custom Computer Programming Services (NAICS 541511) is a key sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires careful oversight to ensure value for money.

Taxpayer Impact: Taxpayer funds are being used for essential cloud computing infrastructure for a critical government agency. The competitive award process aims to optimize spending, but cost control remains important.

Public Impact

Enhances NOAA's data processing and storage capabilities for critical environmental monitoring. Supports scientific research and weather forecasting through advanced computing infrastructure. Ensures continuity of essential government services reliant on cloud technology. Potential for job creation within the IT sector supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, a vital area for government IT modernization. Spending benchmarks for similar large-scale cloud computing contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that the awardee is not a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of Commerce to ensure costs remain reasonable and aligned with the fixed fee. Performance monitoring will be crucial for accountability.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-commerce, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $70.7 million to L3HARRIS TECHNOLOGIES, INC.. GGSS TASK ORDER 05 - GEO CLOUD COMPUTE SUBSYSTEM

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $70.7 million.

What is the period of performance?

Start: 2024-11-04. End: 2028-04-30.

What specific cloud computing services are included in this task order, and how do they align with NOAA's strategic objectives?

This task order focuses on 'Geo Cloud Compute Subsystem' services, likely encompassing infrastructure, platform, and potentially software-as-a-service components tailored for geographic data processing and analysis. These services are expected to align with NOAA's objectives of enhancing weather forecasting, climate monitoring, and managing vast amounts of environmental data more efficiently and securely.

What are the key performance indicators (KPIs) for this contract, and how will L3Harris's performance be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for cloud computing services, KPIs would include uptime/availability, latency, data security compliance, response times for support, and scalability. NOAA's contracting officers will need to establish and monitor these metrics to ensure L3Harris meets the required service levels.

How does the Cost Plus Fixed Fee structure mitigate risks associated with potential scope creep or unforeseen technical challenges?

The 'Fixed Fee' component of the CPFF structure provides a ceiling on the contractor's profit, incentivizing efficiency. However, the 'Cost Plus' aspect means the government bears the risk of increased costs. Mitigation relies heavily on detailed SOWs, rigorous change control processes, and proactive project management by NOAA to prevent uncontrolled cost growth due to scope creep or technical issues.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $107,480,086

Exercised Options: $72,365,246

Current Obligation: $70,682,379

Actual Outlays: $32,383,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 1332KP23DNAAA0003

IDV Type: IDC

Timeline

Start Date: 2024-11-04

Current End Date: 2028-04-30

Potential End Date: 2028-04-30 00:00:00

Last Modified: 2026-04-10

More Contracts from L3harris Technologies, Inc.

View all L3harris Technologies, Inc. federal contracts →

Other Department of Commerce Contracts

View all Department of Commerce contracts →

Explore Related Government Spending