L3Harris Technologies awarded $186M contract for IT services, with $8M added for unspecified needs
Contract Overview
Contract Amount: $186,275,037 ($186.3M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Commerce
Start Date: 2002-06-25
End Date: 2008-09-30
Contract Duration: 2,289 days
Daily Burn Rate: $81.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ADD FUNDS IN THE AMOUNT OF $8,001,000
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Commerce obligated $186.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ADD FUNDS IN THE AMOUNT OF $8,001,000 Key points: 1. Contract value of $186M suggests a significant, long-term IT service requirement. 2. The definitive contract type indicates a firm commitment for a defined period. 3. Awarded to L3Harris Technologies, a major defense and aerospace contractor. 4. The addition of $8M highlights potential scope adjustments or unforeseen needs. 5. Performance-based contract structure incentivizes meeting specific objectives. 6. Geographic location in Florida may indicate a concentration of IT operations or personnel.
Value Assessment
Rating: fair
The total award of $186,275,037 over approximately 6 years (2002-2008) averages to about $31M annually. Without specific deliverables or performance metrics, it's challenging to benchmark value for money. The cost-plus-award-fee structure allows for contractor reimbursement of costs plus a fee based on performance, which can lead to higher costs if not tightly managed. The additional $8M suggests potential cost overruns or scope expansion, warranting closer scrutiny of the justification for these funds.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield better pricing and value for the government. The fact that it was competed suggests that the U.S. Census Bureau sought the best available solution and price from the market.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among potential contractors.
Public Impact
The U.S. Census Bureau benefits from enhanced IT infrastructure and services, crucial for data collection and dissemination. Services delivered likely include IT support, system maintenance, and potentially software development or integration. The contract's impact is primarily within the federal government's statistical and data management functions. Workforce implications may include IT specialists employed by L3Harris Technologies in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep due to the cost-plus-award-fee structure.
- The $8M add-on requires clear justification to ensure taxpayer funds are used efficiently.
- Long contract duration (over 6 years) may lead to technology obsolescence if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- The definitive contract type provides clarity on the government's commitment.
- Performance-based elements in the award fee structure incentivize contractor success.
Sector Analysis
This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT support and consulting. The U.S. Census Bureau's need for such services is substantial, given its critical role in national data collection. Comparable spending benchmarks would involve analyzing other large federal IT service contracts awarded to major defense and IT contractors, which often run into hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, L3Harris Technologies, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus is on a large-scale IT solution rather than fostering small business participation.
Oversight & Accountability
Oversight would typically be managed by the U.S. Census Bureau's contracting officers and program managers. The cost-plus-award-fee structure necessitates rigorous monitoring of costs and performance against defined award criteria. Transparency is generally provided through contract award databases, but detailed performance reports and cost breakdowns may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal IT Modernization Programs
- Census Bureau IT Infrastructure Support
- Government IT Services Contracts
- Cost-Plus-Award-Fee Contracts
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Need for clear justification of additional funding.
- Risk of technology obsolescence over the contract's long duration.
Tags
it-services, department-of-commerce, u-s-census-bureau, definitive-contract, large-contract, full-and-open-competition, cost-plus-award-fee, florida, l3harris-technologies, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $186.3 million to L3HARRIS TECHNOLOGIES, INC.. ADD FUNDS IN THE AMOUNT OF $8,001,000
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $186.3 million.
What is the period of performance?
Start: 2002-06-25. End: 2008-09-30.
What specific IT services were provided under this contract?
The contract falls under NAICS code 541519 (Other Computer Related Services), suggesting a broad range of IT support. While specific deliverables are not detailed in the provided data, typical services under such a classification for an agency like the U.S. Census Bureau could include IT infrastructure management, network support, cybersecurity services, software maintenance and development, data management, and technical support for Census Bureau systems and personnel. The 'Definitive Contract' type implies a defined scope, but the exact nature of the services would be detailed in the contract's statement of work, which is not provided here.
How does the $8,001,000 add-on funding compare to the original award amount and typical contract modifications?
The $8,001,000 represents approximately 4.3% of the original award amount of $186,275,037. This is a moderate increase, often seen in long-term, complex contracts to accommodate evolving requirements, unforeseen technical challenges, or scope adjustments. While not excessively large, any modification warrants scrutiny to ensure it aligns with the contract's objectives and provides good value. The justification for this specific add-on would be crucial for assessing its necessity and impact on the overall contract cost-effectiveness.
What is the track record of L3Harris Technologies in delivering similar IT services to federal agencies?
L3Harris Technologies is a major defense contractor with extensive experience in various technology sectors, including IT services. They have a significant history of performing large-scale government contracts. While this specific contract was awarded in 2002, the company's ongoing presence and success in securing subsequent large federal contracts suggest a generally positive track record. However, a detailed analysis would require examining past performance reviews, any contract disputes, and the successful completion of similar IT service projects for civilian agencies like the Census Bureau.
How does the cost-plus-award-fee (CPAF) structure impact the government's cost control and the contractor's incentive?
The Cost-Plus-Award-Fee (CPAF) structure reimburses the contractor for allowable costs and provides a base fee, plus an additional award fee based on performance against pre-defined criteria. This structure is intended to incentivize high performance by rewarding the contractor for exceeding expectations. For the government, it offers flexibility but requires robust oversight to ensure costs remain reasonable and that the award fee criteria are objective and measurable. It can lead to higher overall costs compared to fixed-price contracts if not managed diligently, but it is suitable for complex projects where performance is critical and difficult to define precisely upfront.
What were the historical spending patterns for IT services at the U.S. Census Bureau around the time of this award?
The U.S. Census Bureau, like other large federal agencies, has consistently required significant IT investments to manage its vast data collection, processing, and dissemination operations. Around the early 2000s, federal agencies were increasingly modernizing their IT infrastructure. Spending on IT services, including support, maintenance, and development, was substantial across government. This $186M contract for L3Harris Technologies aligns with the scale of IT needs for an agency responsible for the decennial census and numerous other surveys, suggesting it was part of a broader strategy to ensure robust and reliable IT capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2400 PALM BAY RD NE, MELBOURNE, FL, 32902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $214,801,373
Exercised Options: $214,010,679
Current Obligation: $186,275,037
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-06-25
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2025-05-30
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