Interior Department awards $15.6M sole-source contract for RF interference monitoring system sustainment to L3Harris Technologies
Contract Overview
Contract Amount: $15,640,737 ($15.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-06-23
End Date: 2026-09-30
Contract Duration: 1,195 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATIONS SUSTAINMENT AND MAINTENANCE
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of the Interior obligated $15.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATIONS SUSTAINMENT AND MAINTENANCE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. The contract duration of nearly 4 years suggests a long-term need for these services. 3. The cost-plus-fixed-fee pricing structure may incentivize cost overruns. 4. The specific technical nature of RF interference monitoring may limit competition. 5. Performance metrics and oversight will be crucial for ensuring value. 6. This contract supports critical communications infrastructure.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and specialized technical requirements. Without competitive bids, it's difficult to ascertain if the fixed fee is reasonable or if the government is receiving optimal value. The cost-plus aspect introduces risk, as the final cost could exceed initial estimates if not managed carefully. Further analysis would require understanding the specific services provided and comparing them to industry standards for similar specialized maintenance and sustainment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the unique capabilities, technology, or proprietary knowledge required for the service. While this can ensure specialized expertise, it significantly limits price discovery and may lead to higher costs for the government compared to a competitively bid contract.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes. The absence of competition can reduce pressure on the contractor to offer the most economical solution.
Public Impact
The Department of the Interior benefits from the continued operation and maintenance of its Radio Frequency Interference Monitoring System. This system is crucial for ensuring the integrity and reliability of wireless communications used by the agency. The contract supports specialized technical services, potentially involving a highly skilled workforce. The geographic impact is likely concentrated where the Department of the Interior utilizes these RF monitoring systems, primarily within Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee structure can lead to cost overruns if not tightly managed.
- Lack of transparency in the justification for sole-source award.
Positive Signals
- Contract ensures sustainment of critical RF monitoring capabilities.
- L3Harris Technologies is an established defense and aerospace contractor with relevant expertise.
- Defined period of performance provides budget certainty for the agency.
Sector Analysis
The Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector is highly specialized, involving complex technologies and significant research and development. Contracts within this space often require deep technical expertise and proprietary knowledge, which can sometimes lead to sole-source procurements. The market size for such specialized sustainment services is difficult to quantify precisely but is integral to national security and critical infrastructure operations. This contract fits within the broader IT and Defense industrial base, supporting essential communication monitoring functions.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless L3Harris Technologies voluntarily engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract will primarily fall under the Department of the Interior's contracting and program management offices. Given the sole-source nature and cost-plus structure, rigorous oversight of expenditures, performance, and adherence to the fixed fee is essential. Transparency regarding the justification for the sole-source award and the contractor's performance reporting will be key accountability measures. The Inspector General's office may also have jurisdiction depending on the nature of any potential issues.
Related Government Programs
- Radio Frequency Monitoring Systems
- Wireless Communications Infrastructure
- Department of the Interior IT Services
- Defense Communications Sustainment
Risk Flags
- Sole-source award may limit cost savings.
- Cost-plus-fixed-fee structure carries inherent cost overrun risk.
- Potential for vendor lock-in due to specialized technology.
- Dependence on a single supplier for critical infrastructure sustainment.
Tags
sector-other, agency-department-of-the-interior, contract-type-definitive-contract, competition-level-sole-source, pricing-structure-cost-plus-fixed-fee, size-category-large, geography-florida, service-sustainment-and-maintenance, technology-radio-frequency, system-monitoring
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $15.6 million to L3HARRIS TECHNOLOGIES, INC.. RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATIONS SUSTAINMENT AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2023-06-23. End: 2026-09-30.
What is the specific technical capability L3Harris Technologies possesses that justifies this sole-source award for RF interference monitoring?
The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or specialized knowledge that only one contractor can provide. For RF interference monitoring system operations, sustainment, and maintenance, this could involve specific hardware or software developed by L3Harris, unique integration expertise with existing Interior Department systems, or specialized personnel with rare skill sets required for the complex analysis and upkeep of such a system. Without access to the specific Justification and Approval (J&A) document, the precise technical reasons remain undisclosed, but it is presumed to be related to the proprietary nature of the system or the highly specialized maintenance required.
How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar sustainment services?
The Cost-Plus-Fixed-Fee (CPFF) structure is common for complex services where the scope of work might evolve or is difficult to define precisely upfront, such as research and development or specialized sustainment. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the actual costs incurred, offering greater cost certainty to the buyer but potentially higher risk for the contractor. Compared to Cost-Plus-Incentive-Fee (CPIF), CPFF offers less incentive for the contractor to control costs beyond the initial fixed fee. For sustainment, a competitively bid fixed-price contract would generally be preferred by the government for cost predictability, but CPFF may be used when technical uncertainties are high.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
Specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract are not publicly detailed in the provided data. However, for a Radio Frequency Interference Monitoring System Operations Sustainment and Maintenance contract, typical KPIs would likely include system uptime/availability, response time to detected interference events, accuracy of interference identification and localization, successful resolution of identified interference issues, and adherence to maintenance schedules. The effectiveness of the system in preventing or mitigating critical interference would be a paramount measure. The Department of the Interior would establish these metrics in the contract's Statement of Work (SOW) to ensure the contractor meets performance expectations.
What is the historical spending pattern for RF interference monitoring systems within the Department of the Interior?
Historical spending data specifically for 'RADIO FREQUENCY INTERFERENCE MONITORING SYSTEM OPERATIONS SUSTAINMENT AND MAINTENANCE' within the Department of the Interior is not detailed in the provided summary. However, the award of a $15.6 million contract with a period of performance extending to September 2026 suggests a significant and ongoing requirement for these services. To understand historical patterns, one would need to analyze past contracts for similar services, potentially looking at prior sustainment efforts for this specific system or related RF monitoring technologies used by the Department. This would reveal trends in contract values, durations, and whether previous awards were also sole-source or competed.
Are there any known risks associated with L3Harris Technologies' performance on similar government contracts?
L3Harris Technologies is a large, established defense contractor with a substantial portfolio of government contracts. While specific performance issues on past contracts are not detailed in the provided data, large contractors generally face a range of potential risks, including cost overruns, schedule delays, and technical performance challenges. Government contract performance is often monitored through various mechanisms, including past performance evaluations. Without specific data on L3Harris's track record related to RF monitoring systems or similar complex sustainment contracts, it's difficult to assess specific risks. However, the government's decision to award a sole-source contract implies a level of confidence in L3Harris's ability to meet the requirements.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 140D0423R0004
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: $34,495,266
Exercised Options: $15,640,737
Current Obligation: $15,640,737
Actual Outlays: $11,082,175
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $582,978
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-23
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-26
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