Department of Transportation awards $78.7K for IP services to support server connections, with over $67K in recurring charges

Contract Overview

Contract Amount: $254,887,371 ($254.9M)

Contractor: Harris Corporation

Awarding Agency: Department of Transportation

Start Date: 2009-09-16

End Date: 2011-09-23

Contract Duration: 737 days

Daily Burn Rate: $345.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: [FAN:FM0786] ASIAS PROGRAM OFFICE AGREES TO PROVIDE $78,671.65 TO BE AWARDED TO THE FTI CONTRACT # DTFA01-02-D-03006/0015 TO SUPPORT THE INSTALLATION OF TWO IP SERVICES TO CONNECT OEX AND ACY SERVERS. THE IP SERVICES ARE BOTH SIZED AT 4.6 MBPS. NRC $11,653.07 AND RECURRING CHARGES OF $67,018.58 FOR A TOTAL OF $78,671.65. [FAN:FM0786] CIDS ER10966-1, ER10967-1.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $254.9 million to HARRIS CORPORATION for work described as: [FAN:FM0786] ASIAS PROGRAM OFFICE AGREES TO PROVIDE $78,671.65 TO BE AWARDED TO THE FTI CONTRACT # DTFA01-02-D-03006/0015 TO SUPPORT THE INSTALLATION OF TWO IP SERVICES TO CONNECT OEX AND ACY SERVERS. THE IP SERVICES ARE BOTH SIZED AT 4.6 MBPS. NRC $11,653.07 AND RECURRING CHARG… Key points: 1. The contract focuses on providing telecommunications services, specifically IP services for server connectivity. 2. A significant portion of the contract value is allocated to recurring charges, indicating an ongoing service requirement. 3. The contract was not competed, raising questions about potential price discovery and value for money. 4. The award was made to Harris Corporation, a known entity in the aerospace and defense sector. 5. The duration of the contract is approximately two years, suggesting a medium-term need for these services. 6. The total value is relatively small, indicating a specific, localized need rather than a large-scale program.

Value Assessment

Rating: fair

The total contract value of $78,671.65 is modest. The breakdown includes $11,653.07 for non-recurring charges and $67,018.58 for recurring charges. The high proportion of recurring costs suggests a service-based agreement. Without comparable contracts for similar IP services of 4.6 MBPS, a precise value-for-money assessment is difficult. However, the pricing structure with a substantial recurring component warrants scrutiny to ensure long-term cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for not competing are not detailed in the provided data. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. It is important to understand if there were justifiable reasons, such as unique capabilities or urgent needs, that precluded a competitive process.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which typically drives down costs. This could potentially result in a higher expenditure than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are likely internal IT operations within the Federal Aviation Administration (FAA) that require enhanced server connectivity. The services delivered are the installation and provision of two IP services, each sized at 4.6 MBPS. The geographic impact is localized to the facilities where the OEX and ACY servers are located. Workforce implications are minimal, likely involving a small technical team for installation and ongoing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
High proportion of recurring costs could indicate long-term financial commitment without clear exit strategy.
Contract duration of two years without clear performance metrics is a potential risk.

Positive Signals

Award to a known contractor, Harris Corporation, may imply reliability.
Specific technical requirement (IP services for server connection) suggests a defined need.
Relatively small contract value limits overall financial risk.

Sector Analysis

This contract falls within the Telecommunications Resellers sector, specifically related to IT infrastructure and networking services. The market for telecommunications services is vast and competitive, but specific niche services like dedicated IP connections for government servers can sometimes be concentrated among fewer providers. The total federal spending on telecommunications resellers is substantial, but this particular award represents a very small fraction of that market.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information available. The award was made to Harris Corporation, a large defense contractor. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. As a fixed-price incentive contract, performance metrics and cost controls would be key areas of oversight. Transparency is limited by the sole-source nature of the award; further details on the justification and negotiation process would be needed for a full assessment. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration IT Infrastructure
Telecommunications Services Contracts
Network Connectivity Solutions
Government Server Support

Risk Flags

Sole-source award lacks competitive justification.
High percentage of recurring costs requires ongoing budget allocation.
Limited public information on specific performance metrics and SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $254.9 million to HARRIS CORPORATION. [FAN:FM0786] ASIAS PROGRAM OFFICE AGREES TO PROVIDE $78,671.65 TO BE AWARDED TO THE FTI CONTRACT # DTFA01-02-D-03006/0015 TO SUPPORT THE INSTALLATION OF TWO IP SERVICES TO CONNECT OEX AND ACY SERVERS. THE IP SERVICES ARE BOTH SIZED AT 4.6 MBPS. NRC $11,653.07 AND RECURRING CHARGES OF $67,018.58 FOR A TOTAL OF $78,671.65. [FAN:FM0786] CIDS ER10966-1, ER10967-1.

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 $254.9 million.

What is the period of performance?

Start: 2009-09-16. End: 2011-09-23.

What is the track record of Harris Corporation with the Federal Aviation Administration and the Department of Transportation?

Harris Corporation, now part of L3Harris Technologies, has a long history of contracting with various U.S. government agencies, including the Department of Defense and NASA, as well as civilian agencies like the FAA. Their work often involves complex communication, navigation, and surveillance systems. For the FAA, Harris has historically provided services and equipment related to air traffic management and communication infrastructure. While this specific contract is small, it aligns with their broader capabilities in providing robust communication solutions. A deeper dive into their past performance ratings and any past disputes or contract issues with the FAA would provide a more complete picture of their reliability for this specific task.

How does the pricing of these IP services compare to market rates for similar bandwidth (4.6 MBPS)?

Benchmarking the pricing for these IP services is challenging without more specific details on the service level agreements (SLAs), the type of IP service (e.g., dedicated, shared), and the geographic location of the OEX and ACY servers. However, the recurring cost of $67,018.58 over approximately two years ($33,509.29 per year) for two 4.6 MBPS connections suggests an annual cost of roughly $16,754.65 per connection. This translates to approximately $1,396 per month per connection. Depending on the market and the specific service guarantees, this could be within a reasonable range for dedicated, reliable government-grade IP services, but it could also be on the higher side if the service is not highly specialized or if competition was artificially limited.

What are the specific risks associated with a sole-source award for telecommunications services?

Sole-source awards for telecommunications services carry several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult and potentially expensive. Furthermore, without competitive benchmarking, it's harder to ensure the agency is receiving the best available technology and service levels. Transparency is often reduced, making it difficult for oversight bodies and the public to ascertain if the government received fair value. In this case, the justification for the sole-source award would be critical to understanding if these risks were mitigated.

What is the expected effectiveness of these IP services in supporting the OEX and ACY servers?

The effectiveness of these IP services hinges on their ability to provide reliable and sufficient bandwidth (4.6 MBPS each) for the OEX and ACY servers. These servers likely host critical applications or data for the Federal Aviation Administration. The contract specifies 'support the installation,' implying a one-time setup followed by ongoing service. Assuming the chosen provider, Harris Corporation, delivers as per the contract terms, the services should effectively enhance connectivity. However, the true measure of effectiveness will be the uptime, latency, and throughput experienced by the users and systems relying on these servers, which are not detailed in the award data.

How does this contract's spending compare to historical FAA spending on similar telecommunications services?

This contract's total value of $78,671.65 is relatively small in the context of the FAA's overall IT and telecommunications budget, which can run into hundreds of millions or even billions of dollars annually. Spending on specific IP services for server connectivity would be a component of broader network infrastructure investments. Without access to historical FAA procurement data for similar 4.6 MBPS IP services, a direct comparison is difficult. However, given the modest size, it likely represents a targeted upgrade or new requirement rather than a major shift in spending patterns. The recurring nature of over 85% of the cost ($67,018.58) suggests a focus on sustained service delivery.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 243 SHOEMAKER RD, POTTSTOWN, PA, 04

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

Financial Breakdown

Contract Ceiling: $255,216,594

Exercised Options: $255,216,594

Current Obligation: $254,887,371

Parent Contract

Parent Award PIID: DTFA0102D03006

IDV Type: IDC

Timeline