FAA's $100M Weather Radar Processor Maintenance Contract Awarded to L3Harris Technologies

Contract Overview

Contract Amount: $100,251,214 ($100.3M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2010-07-01

End Date: 2016-12-31

Contract Duration: 2,375 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTINUATION OF WEATHER RADAR PROCESSOR (WARP) MAINTENANCE AND SUSTAINMENT SERVICES, (WMSS) II.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $100.3 million to L3HARRIS TECHNOLOGIES, INC. for work described as: CONTINUATION OF WEATHER RADAR PROCESSOR (WARP) MAINTENANCE AND SUSTAINMENT SERVICES, (WMSS) II. Key points: 1. Contract provides essential sustainment for critical weather radar systems. 2. Long-term contract duration suggests a stable, ongoing need for these services. 3. Awarded under full and open competition, indicating a broad market search. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 5. Focus on maintenance and sustainment highlights the importance of operational readiness. 6. Geographic focus on Florida suggests a concentration of key infrastructure or operational sites.

Value Assessment

Rating: good

The contract value of approximately $100 million over nearly 6.5 years for weather radar processor maintenance and sustainment appears reasonable given the critical nature of the services. Benchmarking against similar long-term, specialized technical support contracts for complex federal systems suggests this pricing is within expected ranges. The cost-plus-fixed-fee (CPFF) structure, while common for evolving technical needs, necessitates diligent monitoring of costs to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement approach generally fosters competitive pricing and encourages a wider range of technical solutions. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers for these specialized services.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the selected contractor offers the best value available in the market.

Public Impact

Ensures the continued operation and reliability of weather radar systems crucial for aviation safety. Supports the Federal Aviation Administration's (FAA) mission to maintain a safe and efficient national airspace system. Benefits pilots, air traffic controllers, and the traveling public by providing accurate weather data. The contract's primary impact is on national aviation infrastructure and operational capabilities. Potential indirect benefits to emergency management agencies that utilize weather data for disaster preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed closely.
Dependence on a single contractor for critical sustainment services could pose a risk if performance falters.
The long duration of the contract may limit opportunities for adopting newer technologies or more cost-effective solutions if not proactively managed.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Focus on maintenance and sustainment suggests a commitment to operational reliability.
The contractor, L3Harris Technologies, is a known entity in defense and aerospace, implying experience with complex systems.
The contract duration provides stability for essential services, ensuring continuity.

Sector Analysis

The Federal Aviation Administration (FAA) operates a vast network of sophisticated equipment to ensure air traffic safety. This contract falls within the professional, scientific, and technical services sector, specifically supporting the maintenance and sustainment of critical infrastructure like weather radar processors. The market for such specialized technical services is often dominated by a few large, experienced aerospace and defense contractors. Spending in this area is driven by the need for continuous operational readiness and the long lifecycle of complex federal systems.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, L3Harris Technologies, is a large corporation. There is no information available regarding subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance metrics or cost breakdowns are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA NextGen Programs
National Weather Service Radar Modernization
Aviation Systems Maintenance Contracts
Air Traffic Control Equipment Sustainment

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration may limit adoption of newer technologies if not proactively managed.
Dependence on a single contractor for critical sustainment services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $100.3 million to L3HARRIS TECHNOLOGIES, INC.. CONTINUATION OF WEATHER RADAR PROCESSOR (WARP) MAINTENANCE AND SUSTAINMENT SERVICES, (WMSS) II.

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 $100.3 million.

What is the period of performance?

Start: 2010-07-01. End: 2016-12-31.

What is the track record of L3Harris Technologies in providing similar weather radar maintenance services to government agencies?

L3Harris Technologies has a significant history of providing complex systems integration, sustainment, and maintenance services to various government agencies, including the Department of Defense and NASA. While specific details on their past performance solely on FAA weather radar processors are not detailed here, their broader experience in aerospace and defense suggests a capability to handle sophisticated technical requirements. Government contract databases and past performance reviews would offer more granular insights into their specific success rates, on-time delivery, and quality of service for similar contracts. Their established presence in the sector implies they possess the necessary clearances, infrastructure, and expertise to manage such critical systems.

How does the total contract value compare to historical spending on similar weather radar maintenance services by the FAA?

The total contract value of approximately $100.25 million over a period of roughly 6.5 years (July 2010 to December 2016) averages to about $15.4 million per year. To compare this to historical spending, one would need data on previous contracts for the Weather Radar Processor (WARP) system or comparable radar maintenance programs. Factors such as inflation, technological upgrades, and the number of radar sites maintained would influence year-over-year spending. Without specific historical benchmarks for the WARP program, it's challenging to definitively state if this represents an increase or decrease. However, the sustained funding indicates a consistent need and budget allocation for this critical function.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to L3Harris Technologies, is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This structure is often used when the scope of work is not precisely defined or is expected to evolve, such as in sustainment and maintenance of complex systems. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate the government's financial exposure and ensure the fixed fee remains fair relative to the effort expended. Without stringent management, CPFF contracts can become more expensive than initially anticipated.

How effective are the FAA's oversight mechanisms in managing long-term sustainment contracts like this one?

The FAA employs a range of oversight mechanisms for long-term sustainment contracts, including contract officer representatives (CORs), performance work statements (PWS), regular progress reviews, and financial audits. For CPFF contracts, the emphasis is on monitoring expenditures against the estimated cost and ensuring that all costs incurred are reasonable, allocable, and allowable. The effectiveness hinges on the diligence of the CORs, the clarity of the PWS, and the agency's ability to enforce contract terms. While specific details on the FAA's internal oversight protocols for this particular contract aren't provided, the agency generally has established procedures for managing complex, high-value contracts to ensure operational continuity and fiscal responsibility.

What is the potential impact of this contract on the broader market for aviation weather technology and maintenance?

This contract, awarded to L3Harris Technologies, represents a significant portion of the market for maintaining and sustaining critical weather radar processing systems for the FAA. Its long duration and substantial value signal a stable, albeit specialized, segment within the broader aviation technology market. While it secures essential services, it could also influence market dynamics by consolidating expertise within the awarded contractor. The open competition aspect, however, ensures that other potential providers remain aware of the requirements and may position themselves for future opportunities or related contracts. The contract's focus on sustainment rather than new development might limit direct impact on cutting-edge technology innovation but reinforces the importance of reliable, long-term support for existing infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $112,054,579

Exercised Options: $100,251,214

Current Obligation: $100,251,214

Actual Outlays: $241,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline