DoD's $282.6M L3Harris contract for program management and sustaining engineering support awarded without competition

Contract Overview

Contract Amount: $282,598,314 ($282.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2014-02-19

Contract Duration: 1,967 days

Daily Burn Rate: $143.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING SUPPORT

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $282.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential overpayment and lack of competitive pressure. 2. Long contract duration of 1967 days suggests a need for sustained support, but also limits opportunities for market re-evaluation. 3. The contract's value, while substantial, needs benchmarking against similar program management and engineering support services. 4. Performance context is crucial to understand if the contractor is delivering value commensurate with the investment. 5. Sector positioning within Defense Engineering Services indicates a critical but potentially less dynamic market. 6. Risk indicators include the lack of competition and the long performance period, which could mask inefficiencies.

Value Assessment

Rating: questionable

The contract's value of $282.6 million over its duration is significant. Without competitive bidding, it is difficult to definitively assess value for money. Benchmarking against similar program management and sustaining engineering support contracts within the Department of Defense is essential. The absence of competition may have led to pricing that is not as favorable as it could have been in a more open market. Further analysis of the specific services rendered and their criticality would be needed to provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when the agency determines that a sole-source award is in the government's best interest, often due to unique capabilities or urgent needs. The lack of competition means there were no other bidders to compare against, limiting price discovery and potentially reducing the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: For taxpayers, a sole-source award means they may not be receiving the best possible price for the services rendered. The absence of competition removes a key mechanism for ensuring cost-effectiveness and can lead to higher overall government expenditures.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential program management and sustaining engineering support for its initiatives. Services delivered include critical engineering expertise to maintain and improve defense programs throughout their lifecycle. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications include the employment of skilled engineers and program managers by L3Harris Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Long contract duration could reduce flexibility and opportunities for market innovation.
Sole-source awards can sometimes indicate a lack of robust market research or planning.
Performance metrics and oversight are critical to ensure value is being delivered without competitive pressure.

Positive Signals

Contract provides essential program management and sustaining engineering, critical for defense operations.
L3Harris Technologies is a known entity in the defense sector, suggesting established capabilities.
The contract duration implies a long-term need that the contractor is fulfilling.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense programs. The market for defense engineering services is characterized by high barriers to entry, specialized expertise, and significant government investment. Comparable spending benchmarks would involve analyzing other large, long-term contracts for program management and sustaining engineering within the Department of Defense and other federal agencies. The size of this contract suggests it is a significant component of the contractor's defense portfolio and critical to the supported programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information on subcontracting implications (sb: false). As a sole-source award to a large contractor, it is unlikely to have direct subcontracting opportunities for small businesses unless L3Harris Technologies voluntarily includes them in its supply chain. This contract does not appear to directly benefit the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is often limited in sole-source contracts, but contract award details are publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Program Management Support
Sustaining Engineering Services
Department of Defense Contracts
L3Harris Technologies Contracts

Risk Flags

Sole-source award
Long contract duration
Lack of competitive bidding
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $282.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. PROGRAM MANAGEMENT AND SUSTAINING ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $282.6 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-02-19.

What is the track record of L3Harris Technologies in delivering program management and sustaining engineering support to the Department of Defense?

L3Harris Technologies, as a major defense contractor, has a significant track record in providing a wide range of services to the Department of Defense, including program management and engineering support. Their experience spans numerous defense platforms and programs. However, the specific performance on this particular contract, especially given its sole-source nature and long duration, would require a detailed review of performance reports, delivery metrics, and any documented issues or successes. Without access to internal DoD performance evaluations or contractor quality data, a comprehensive assessment of their track record on this specific contract is limited to their general reputation and the fact that the contract was extended or continued over its lifespan.

How does the per-unit cost or overall value of this contract compare to similar program management and sustaining engineering contracts?

Benchmarking the value of this $282.6 million contract is challenging without specific details on the services rendered and the contract's performance period. As a sole-source award, direct comparisons to competitively bid contracts are difficult. To perform a robust comparison, one would need to identify similar DoD contracts for program management and sustaining engineering support, considering factors like contract type (e.g., cost-plus, fixed-price), scope of work, duration, and the specific technologies or platforms supported. The absence of a competitive process means that the pricing may not reflect market-driven efficiencies. A detailed analysis would involve examining the contractor's labor rates, overhead, and profit margins against industry standards and historical government data for comparable services.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a contract of this magnitude ($282.6 million) on a sole-source basis include potential overpayment due to a lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the pricing structure. There's also a risk that the government might miss out on potentially better solutions or lower costs offered by other qualified contractors. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or strategic planning by the agency. The long duration of the contract (1967 days) exacerbates these risks by locking the government into a single provider for an extended period, limiting flexibility and the ability to adapt to changing technological landscapes or market conditions.

How effective has L3Harris Technologies been in fulfilling the program management and sustaining engineering requirements of this contract?

Assessing the effectiveness of L3Harris Technologies in fulfilling the requirements of this contract requires access to specific performance data, such as contractor performance evaluation reports (CPARs), key performance indicators (KPIs), and any documented instances of success or failure. Given that this is a sole-source award, the government's oversight and performance management are critical to ensure that the contractor is delivering the expected value. Without direct access to this internal performance data, it's difficult to provide a definitive assessment of effectiveness. However, the continuation of the contract over its lifespan suggests a level of satisfaction, though this is not a substitute for rigorous performance evaluation.

What has been the historical spending pattern for program management and sustaining engineering support within the Department of Defense, and how does this contract fit in?

The Department of Defense historically spends billions of dollars annually on program management and sustaining engineering support across its vast array of programs and platforms. This contract, valued at $282.6 million over its duration, represents a significant but not exceptionally large portion of the DoD's overall spending in these critical areas. Such contracts are essential for maintaining the readiness and operational effectiveness of complex defense systems. Historical spending patterns in this sector often show a consistent demand for these services, driven by the lifecycle management needs of military hardware and software. This contract fits within that pattern as a substantial, long-term commitment to ensure the continued viability and support of specific defense programs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $284,363,628

Exercised Options: $284,363,628

Current Obligation: $282,598,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline