DOT's $58.5M OASIS contract to L3Harris for IT services shows moderate cost efficiency
Contract Overview
Contract Amount: $58,504,264 ($58.5M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Transportation
Start Date: 2007-09-30
End Date: 2008-02-08
Contract Duration: 131 days
Daily Burn Rate: $446.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: OASIS TAS::69 8108::TAS
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Transportation obligated $58.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: OASIS TAS::69 8108::TAS Key points: 1. The contract's total value of $58.5 million for computer systems design services represents a significant investment in IT infrastructure. 2. L3Harris Technologies, Inc. secured this contract through full and open competition, indicating a competitive bidding process. 3. The contract duration of 131 days suggests a focused, short-term project rather than a long-term strategic IT partnership. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight to manage costs effectively. 5. Performance context is limited due to the short duration and lack of detailed performance metrics in the provided data. 6. This contract falls within the IT services sector, specifically computer systems design, a critical area for government operations.
Value Assessment
Rating: fair
Benchmarking the value of this $58.5 million contract is challenging without more specific details on the services rendered and comparable market rates for similar IT projects of this scope and duration. The cost-plus-fixed-fee (CPFF) structure, while common, can sometimes lead to higher overall costs if not managed tightly, as contractor expenses are reimbursed plus a fixed fee. The provided data does not offer enough granular detail to definitively assess value-for-money against industry benchmarks or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bids indicates a degree of competition, which is generally positive for price discovery. However, the limited number of bidders (3) compared to the potential universe of qualified IT service providers might suggest that the scope or specific requirements of the solicitation could have inadvertently limited broader participation.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A competitive process increases the likelihood that the government secures services at a fair market price, maximizing the value of taxpayer dollars.
Public Impact
The primary beneficiary of this contract is the Department of Transportation, which receives essential computer systems design services. The services delivered are critical for the operational efficiency and technological advancement of the Federal Aviation Administration. The geographic impact is primarily within Florida (ST: FL, SN: FLORIDA), where the contractor is based, but the services likely support national FAA operations. The contract supports the IT workforce employed by L3Harris Technologies, Inc., contributing to specialized technical employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
- The short contract duration (131 days) may indicate a project with a very specific, potentially narrow scope, limiting broader impact.
- Limited public information on specific deliverables makes it difficult to assess the true impact and success of the services provided.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- L3Harris Technologies, Inc. is a known entity in the defense and aerospace sector, implying a level of established capability.
- The contract addresses critical IT systems design needs for the Federal Aviation Administration, supporting essential government functions.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design. This sector is a significant component of federal spending, with agencies relying heavily on IT for operations, data management, and service delivery. The market for IT services is highly competitive, with numerous large and small businesses offering a wide range of capabilities. Federal spending in this area often supports modernization efforts, cybersecurity, and the development of new digital platforms.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus was on full and open competition, likely favoring larger, established contractors with the capacity to meet the contract's requirements.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Transportation's contracting officers and the Federal Aviation Administration's program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.
Related Government Programs
- OASIS Contracts
- IT Services
- Computer Systems Design
- Department of Transportation IT Spending
- Federal Aviation Administration Technology Modernization
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to prevent cost overruns.
- Short contract duration may limit the scope and long-term impact of the services provided.
- Limited number of bidders (3) in a full and open competition could warrant further investigation into potential barriers to entry.
Tags
it-services, computer-systems-design, department-of-transportation, federal-aviation-administration, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, l3harris-technologies, florida, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $58.5 million to L3HARRIS TECHNOLOGIES, INC.. OASIS TAS::69 8108::TAS
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $58.5 million.
What is the period of performance?
Start: 2007-09-30. End: 2008-02-08.
What specific computer systems design services were rendered under this contract?
The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541512, which corresponds to Computer Systems Design Services. However, the specific nature of these services is not detailed. Typically, this category includes designing, developing, and implementing information technology solutions, which could encompass software development, network design, IT infrastructure planning, systems integration, and IT consulting. Without further documentation, the precise deliverables and technical scope remain unspecified, making it difficult to assess the project's complexity or impact.
How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar IT services?
The Cost-Plus-Fixed-Fee (CPFF) structure is common for research and development or complex services where the scope may evolve. It reimburses the contractor for allowable costs and adds a predetermined fixed fee. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but can potentially lead to higher costs if not managed diligently, as the contractor is incentivized to incur costs to achieve the fixed fee. For straightforward IT services, FFP is often preferred for cost certainty. However, for system design where innovation or adaptation is key, CPFF can be appropriate, provided robust cost controls and oversight are in place.
What is L3Harris Technologies, Inc.'s track record with the Department of Transportation and the Federal Aviation Administration?
L3Harris Technologies, Inc. (and its predecessor companies) has a significant history of contracting with various U.S. government agencies, including the Department of Defense and NASA. While specific details of their past performance with the Department of Transportation (DOT) and the Federal Aviation Administration (FAA) are not provided in this dataset, their established presence in the aerospace and defense technology sectors suggests a substantial capacity to handle complex government contracts. A deeper dive into FPDS or agency-specific procurement records would be necessary to fully assess their performance history, past issues, or successes with these particular entities.
Given the short duration, what was the likely objective of this specific contract?
The contract's short duration of 131 days (approximately 4.3 months) suggests a project with a well-defined, limited scope or a specific, time-sensitive objective. It could have been for a particular phase of a larger IT project, a specialized system upgrade, a feasibility study, a pilot program, or the resolution of an immediate technical issue. Contracts of this length are less likely to involve extensive system development lifecycle activities and more probable to focus on targeted design, analysis, or implementation tasks that can be completed within the specified timeframe.
How does the total award amount of $58.5 million compare to typical IT service contracts for the FAA?
The $58.5 million award for computer systems design services is a substantial amount, reflecting the critical nature of IT infrastructure for the Federal Aviation Administration (FAA). However, without knowing the specific deliverables, it's difficult to make a direct comparison to 'typical' FAA IT contracts, as these can range from small, specialized support tasks to massive system overhauls. The FAA manages a vast and complex technological ecosystem, including air traffic control systems, data management, and communication networks, all of which require significant IT investment. This contract likely represents a notable, but not necessarily outlier, investment within the FAA's broader IT budget for system design.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 150 S WICKHAM RD, MELBOURNE, FL, 32904
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: $135,000,000
Exercised Options: $58,504,264
Current Obligation: $58,504,264
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2007-09-30
Current End Date: 2008-02-08
Potential End Date: 2008-02-08 00:00:00
Last Modified: 2019-11-13
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)