DOT awards $56.5M for FTI Microwave Services Network support, with a 6678-day period of performance

Contract Overview

Contract Amount: $56,516,217 ($56.5M)

Contractor: Harris Corporation

Awarding Agency: Department of Transportation

Start Date: 2007-06-19

End Date: 2025-09-30

Contract Duration: 6,678 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN: 5001MW, FTI-MW SUPPORT SERVICES, FIXED PRICE. TASK ORDER: N/A. ADD FUNDING TO HARRIS/FTI FOR CONTRACT SUPPORT START UP COSTS FOR FTI MICROWAVE SERVICES NETWORK. DTFA01-02-D-03006/0012 - HARRIS. POP: 05/31 - 07/30/2007. SPEND PLAN: 07-AJW5300-0002. NATIONAL PROJECT CODE: 25610557. CIP# N/A. PR EXPLANATION: PROJECT CREATED AS EXPENSE, NO CAPITAL ASSETS.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $56.5 million to HARRIS CORPORATION for work described as: CLIN: 5001MW, FTI-MW SUPPORT SERVICES, FIXED PRICE. TASK ORDER: N/A. ADD FUNDING TO HARRIS/FTI FOR CONTRACT SUPPORT START UP COSTS FOR FTI MICROWAVE SERVICES NETWORK. DTFA01-02-D-03006/0012 - HARRIS. POP: 05/31 - 07/30/2007. SPEND PLAN: 07-AJW5300-0002. NATIONAL PROJECT COD… Key points: 1. Contract provides essential support for the FTI Microwave Services Network. 2. The contract duration is exceptionally long, spanning over 18 years. 3. Funding is allocated for startup costs, indicating an initial investment phase. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Competition was full and open, suggesting a potentially competitive bidding process. 6. The contract is managed by the Federal Aviation Administration (FAA). 7. The primary service falls under Telecommunications Resellers. 8. The contract is geographically focused on Florida.

Value Assessment

Rating: fair

The total award amount of $56.5 million over a period of performance of 6678 days (approximately 18.3 years) suggests a relatively low annual expenditure. However, without specific details on the services provided or comparable contracts for similar microwave network support, a precise value-for-money assessment is challenging. The firm fixed-price nature of the contract provides cost certainty for the government, but the long duration could lead to potential inefficiencies if market conditions or technological needs change significantly. Benchmarking is difficult due to the long duration and specific nature of the service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. However, the long duration of the contract might have influenced the number of bidders or the nature of their proposals.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through a competitive bidding process, ensuring the government is not overpaying for services.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through enhanced support for its FTI Microwave Services Network. This contract ensures the operational continuity and potential expansion of critical telecommunications infrastructure. The services delivered are essential for maintaining reliable communication systems within the aviation sector. The geographic impact is primarily focused on Florida, where the contract is managed and likely where services are most directly applied. Workforce implications may include specialized technical roles for network support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extremely long period of performance (over 18 years) raises concerns about potential technological obsolescence and the ability to adapt to evolving communication standards.
Startup costs, while necessary, could be subject to overruns if not managed tightly.
The fixed-price nature, while beneficial for cost control, might disincentivize innovation or proactive problem-solving by the contractor if not structured with appropriate performance metrics.
Lack of specific details on the 'FTI Microwave Services Network' makes it difficult to fully assess the criticality and potential risks associated with its support.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust and fair bidding process.
The firm fixed-price contract structure provides cost certainty for the government.
The contract addresses specific startup costs, indicating a clear objective for the initial phase of support.
The long duration, while a concern, also implies a stable, long-term commitment to a critical service, potentially leading to contractor expertise and efficiency over time.

Sector Analysis

This contract falls within the Telecommunications Resellers sector, specifically supporting microwave services. The broader telecommunications industry is characterized by rapid technological advancement and significant infrastructure investment. Contracts of this nature are crucial for maintaining the backbone of communication networks, particularly for government agencies reliant on secure and reliable data transmission. Comparable spending benchmarks are difficult to establish without more granular data on the specific services and network scale, but long-term support contracts for critical infrastructure can represent substantial investments.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or their impact on the small business ecosystem. Given the nature of telecommunications network support, it is possible that specialized subcontractors could be involved, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the awarding agency. As a fixed-price contract, oversight would focus on ensuring the contractor meets the defined service levels and deliverables. Transparency is facilitated by the contract award data being publicly available. Specific Inspector General jurisdiction would depend on the FAA's internal structure and any specific fraud, waste, or abuse concerns that may arise.

Related Government Programs

FAA Air Traffic Control Communications Systems
National Airspace System (NAS) Modernization Programs
Telecommunications Infrastructure Support Contracts
Government Wide IT and Communications Services

Risk Flags

Long Period of Performance Risk
Technological Obsolescence
Potential for Cost Overruns (if scope changes)
Contractor Performance Stability over Time

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $56.5 million to HARRIS CORPORATION. CLIN: 5001MW, FTI-MW SUPPORT SERVICES, FIXED PRICE. TASK ORDER: N/A. ADD FUNDING TO HARRIS/FTI FOR CONTRACT SUPPORT START UP COSTS FOR FTI MICROWAVE SERVICES NETWORK. DTFA01-02-D-03006/0012 - HARRIS. POP: 05/31 - 07/30/2007. SPEND PLAN: 07-AJW5300-0002. NATIONAL PROJECT CODE: 25610557. CIP# N/A. PR EXPLANATION: PROJECT CREATED AS EXPENSE, NO CAPITAL ASSETS.

Who is the contractor on this award?

The obligated recipient is HARRIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $56.5 million.

What is the period of performance?

Start: 2007-06-19. End: 2025-09-30.

What specific services are included under 'FTI-MW SUPPORT SERVICES' and what is the expected performance standard?

The provided data snippet for CLIN 5001MW describes 'FTI-MW SUPPORT SERVICES' as relating to 'CONTRACT SUPPORT START UP COSTS FOR FTI MICROWAVE SERVICES NETWORK'. This suggests the services are primarily focused on the initial setup, deployment, and operationalization of the FTI Microwave Services Network. Specific performance standards are not detailed in the provided data. Typically, such contracts would include network installation, configuration, testing, initial troubleshooting, and potentially training for FAA personnel. The long duration (6678 days) implies ongoing maintenance and operational support beyond the initial startup phase, though the 'startup costs' phrasing might indicate a focus on the initial period. Further details would be found in the contract's Statement of Work (SOW).

How does the $56.5 million award compare to typical spending for similar telecommunications network support contracts?

Comparing the $56.5 million award for 'FTI-MW SUPPORT SERVICES' to typical spending for similar telecommunications network support contracts is challenging without more specific details about the scope, scale, and criticality of the FTI Microwave Services Network. However, considering the award amount is spread over a period of performance of approximately 18.3 years (6678 days), the average annual expenditure is roughly $3.09 million ($56.5M / 18.3 years). This annual figure is moderate for large-scale government telecommunications infrastructure projects. Many significant network deployments or sustainment contracts can run into tens or hundreds of millions annually. The 'startup costs' designation might mean this award represents an initial investment, with potential for future funding or modifications.

What are the primary risks associated with a contract having an 18-year period of performance?

The primary risks associated with an 18-year period of performance for a telecommunications contract include technological obsolescence, market shifts, and potential contractor performance degradation. Microwave technology, while mature, evolves. An 18-year commitment could lock the FAA into outdated technology if not managed with flexibility and upgrade clauses. Market conditions for telecommunications services can change rapidly, impacting the cost-effectiveness of the fixed-price agreement over such a long term. Furthermore, maintaining consistent high performance from a contractor over nearly two decades can be challenging, requiring robust contract management and oversight to ensure ongoing value and service quality. There's also a risk of the contractor's business strategy changing, potentially impacting their long-term commitment or ability to service the contract.

Given the 'Full and Open Competition' award type, what does the number of bidders (3) suggest about the market for these services?

The fact that the contract was awarded under 'Full and Open Competition' with 3 bidders suggests a moderately competitive market for these specific FTI Microwave Services Network support services. While more bidders generally indicate higher competition and potentially better pricing for the government, three bidders still represent a reasonable level of market interest. It implies that at least three companies possessed the capability and were willing to bid on this requirement. The number could be lower if the technical requirements are highly specialized, the contract duration is unusually long, or if the potential profit margins are perceived as low by a wider range of potential bidders. The government likely evaluated these three proposals to select the best value.

How does the geographic focus on Florida (ST: FL, SN: FLORIDA) impact the contract's execution and oversight?

The geographic focus on Florida suggests that the FTI Microwave Services Network infrastructure or the primary operational activities supported by this contract are located within or managed from Florida. This concentration can simplify logistical aspects of service delivery and oversight, as the FAA's contracting officers and technical representatives can potentially conduct more frequent site visits and direct supervision. It may also mean that the contractor's personnel and resources are primarily based in or deployed to Florida. However, it also implies that the benefits of this specific contract's execution are geographically concentrated, and the network's reach or impact might extend beyond Florida, requiring coordination with other regions if the network is national.

What does the 'PR EXPLANATION: PROJECT CREATED AS EXPENSE, NO CAPITAL ASSETS' signify for the contract's nature?

The explanation 'PROJECT CREATED AS EXPENSE, NO CAPITAL ASSETS' indicates that the funding associated with this contract is intended for operational expenditures rather than the acquisition of long-term physical assets. This means the $56.5 million is likely being spent on services, labor, maintenance, software, or consumables required to operate and support the FTI Microwave Services Network. It suggests the network infrastructure itself may have been acquired or developed under separate capital funding mechanisms. Classifying the spending as 'expense' typically affects accounting treatments and budget allocations within the agency, potentially simplifying procurement processes compared to capital asset acquisitions which often have different justification and approval pathways.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications Carriers › Telecommunications Resellers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 243 SHOEMAKER RD, POTTSTOWN, PA, 19464

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $135,900,794

Exercised Options: $56,586,272

Current Obligation: $56,516,217

Actual Outlays: $11,590,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline