FAA Awards $1.29B ADS-B Contract to L3Harris Technologies for National Contract Support
Contract Overview
Contract Amount: $1,294,123,164 ($1.3B)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Transportation
Start Date: 2007-08-27
End Date: 2025-08-31
Contract Duration: 6,579 days
Daily Burn Rate: $196.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: REQUISITION FOR MOD - INCREMENTALLY FUNDED - THIS PR PROVIDES FUNDING FOR ADS-B NATIONAL CONTRACT SUPPORT FOR SBS PROGRAM OFFICE.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $1.29 billion to L3HARRIS TECHNOLOGIES, INC. for work described as: REQUISITION FOR MOD - INCREMENTALLY FUNDED - THIS PR PROVIDES FUNDING FOR ADS-B NATIONAL CONTRACT SUPPORT FOR SBS PROGRAM OFFICE. Key points: 1. Contract awarded to L3Harris Technologies, Inc. for ADS-B National Contract Support. 2. Significant funding of $1.29 billion allocated over the contract's duration. 3. The contract spans from 2007 to 2025, indicating a long-term need. 4. This award falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: good
The contract's total value is substantial at $1.29 billion. Without specific benchmarks for ADS-B national contract support, a direct per-unit cost comparison is difficult. However, the incrementally funded nature suggests phased delivery and potential for cost adjustments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for selecting the best value provider. This method generally leads to more competitive pricing and ensures a wider range of potential contractors could bid.
Taxpayer Impact: Full and open competition aims to secure the best possible price for taxpayers by fostering a competitive bidding environment.
Public Impact
Enhances national airspace safety and efficiency through ADS-B technology. Supports the Federal Aviation Administration's modernization efforts. Ensures continued operation and support for critical navigation systems. Impacts airlines, air traffic control, and potentially general aviation users.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Incremental funding may lead to cost overruns if not managed carefully.
- Long contract duration could be subject to technological obsolescence.
- Reliance on a single contractor for national support could pose risks.
Positive Signals
- Awarded through full and open competition.
- Supports critical national infrastructure.
- Long-term commitment indicates a stable program.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on advanced navigation and guidance systems. Spending in this area is crucial for modernizing air traffic control and ensuring flight safety, with benchmarks often tied to technological advancements and system integration costs.
Small Business Impact
The data indicates this is a large contract awarded to L3Harris Technologies, Inc. There is no explicit mention of small business participation or subcontracting goals within the provided details, suggesting it may not have a significant direct impact on small businesses.
Oversight & Accountability
The contract's incremental funding and long duration necessitate ongoing oversight from the Federal Aviation Administration to ensure cost control, adherence to scope, and timely delivery of services. Regular reviews are essential for accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for cost overruns due to incremental funding.
- Risk of technological obsolescence over the contract's long duration.
- Dependence on a single contractor for critical national support.
- Lack of explicit small business participation details.
- Need for robust oversight to manage performance and costs.
Tags
search-detection-navigation-guidance-aer, department-of-transportation, va, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $1.29 billion to L3HARRIS TECHNOLOGIES, INC.. REQUISITION FOR MOD - INCREMENTALLY FUNDED - THIS PR PROVIDES FUNDING FOR ADS-B NATIONAL CONTRACT SUPPORT FOR SBS PROGRAM OFFICE.
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 $1.29 billion.
What is the period of performance?
Start: 2007-08-27. End: 2025-08-31.
What is the specific performance metric tied to the 'incentive fee' in this Cost Plus Incentive Fee contract, and how does it ensure value for money?
The specific performance metric for the incentive fee is not detailed in the provided data. In a Cost Plus Incentive Fee (CPIF) contract, this fee is typically tied to achieving specific performance targets, such as cost savings, schedule adherence, or technical performance. The FAA would have negotiated these metrics with L3Harris to incentivize efficient and effective contract execution, ensuring that taxpayer funds are used judiciously to meet program objectives.
Given the contract's duration and the rapid evolution of aviation technology, what are the potential risks of technological obsolescence for the ADS-B systems being supported?
The primary risk of technological obsolescence stems from the contract's long duration (2007-2025) and the fast-paced nature of technological advancement in aviation. While ADS-B is a mature technology, future upgrades or entirely new systems could emerge. L3Harris must ensure the supported systems remain compatible with evolving air traffic management infrastructure and potentially incorporate future technological enhancements to mitigate obsolescence risks and maintain long-term effectiveness.
How does the 'full and open competition' procurement method ensure that the $1.29 billion awarded is a fair and reasonable price for the ADS-B national contract support?
Full and open competition ensures a fair and reasonable price by allowing any interested and qualified contractor to submit a bid. This broad participation creates a competitive environment where multiple companies vie for the contract, driving down prices through market forces. The FAA evaluates these bids based on technical merit and price, selecting the offer that provides the best overall value, thereby maximizing the efficient use of taxpayer funds.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $2,124,183,719
Exercised Options: $1,604,549,207
Current Obligation: $1,294,123,164
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-08-27
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2018-07-15
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