DoD awards $80.2M to L3Harris for advanced electronic warfare suite production in Morocco
Contract Overview
Contract Amount: $80,246,041 ($80.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-11-18
End Date: 2024-09-30
Contract Duration: 2,873 days
Daily Burn Rate: $27.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) MOROCCO PRODUCTION EFFORT
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $80.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) MOROCCO PRODUCTION EFFORT Key points: 1. Contract awarded for production of an advanced integrated defensive electronic warfare suite. 2. Significant investment in defense electronics, supporting strategic capabilities. 3. Long-term contract duration suggests ongoing need for these systems. 4. Focus on production rather than research and development. 5. Geographic focus on Morocco indicates international defense cooperation. 6. Single awardee suggests potential for limited competition or specialized capability.
Value Assessment
Rating: fair
The contract value of $80.2 million for the AIDEWS production effort is substantial. Benchmarking this against similar advanced electronic warfare system production contracts is challenging without more specific details on system complexity and quantity. The fixed-price incentive (FPI) contract type suggests an attempt to balance cost control with performance incentives, but the overall value-for-money assessment requires deeper analysis of unit costs and performance metrics achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that the Department of Defense identified L3Harris Technologies, Inc. as the only responsible source capable of meeting the requirement. This could be due to proprietary technology, unique manufacturing capabilities, or existing integration with current platforms. The lack of competition means that price discovery through a competitive bidding process was not utilized, potentially leading to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The government relies on negotiation and oversight to ensure a fair price in sole-source situations.
Public Impact
The primary beneficiaries are the U.S. Air Force and potentially allied nations (Morocco) through enhanced defense capabilities. The contract delivers advanced integrated defensive electronic warfare suites, crucial for protecting aircraft and personnel. The geographic impact is centered on production activities likely within the United States, with the end-use application in Morocco. Workforce implications include skilled labor in advanced electronics manufacturing, engineering, and program management at L3Harris.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Long contract duration could lead to cost overruns if not managed effectively.
- Complexity of advanced electronic warfare systems can introduce technical risks.
Positive Signals
- Award to an established defense contractor with likely relevant experience.
- Fixed-price incentive contract type aims to align contractor and government interests.
- Production of critical defense technology enhances national security.
Sector Analysis
The defense electronics sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Advanced electronic warfare systems are a critical component of modern military operations, providing protection against threats. The market is often dominated by a few large, specialized contractors. This contract fits within the broader category of defense systems manufacturing, where innovation and technological superiority are paramount.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a sole-source award to a large prime contractor, the direct impact on small businesses may be limited unless L3Harris actively engages them for subcontracting opportunities. Further investigation into L3Harris's subcontracting plans would be necessary to assess the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The fixed-price incentive structure requires careful monitoring of performance metrics and cost targets to ensure value. Transparency may be limited due to the sole-source nature and the classified aspects often associated with defense electronics. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.
Related Government Programs
- Electronic Warfare Systems
- Aircraft Defensive Systems
- Foreign Military Sales (potential)
- Advanced Manufacturing Contracts
Risk Flags
- Sole-source award requires justification and potential for higher costs.
- Long contract duration increases risk of cost escalation if not managed.
- Complexity of EW systems can lead to technical performance risks.
Tags
defense, department-of-defense, air-force, electronic-warfare, l3harris-technologies, fixed-price-incentive, sole-source, production, morocco, advanced-technology, aircraft-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.2 million to L3HARRIS TECHNOLOGIES, INC.. ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE (AIDEWS) MOROCCO PRODUCTION EFFORT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $80.2 million.
What is the period of performance?
Start: 2016-11-18. End: 2024-09-30.
What is the specific nature of the 'advanced integrated defensive electronic warfare suite' (AIDEWS) being produced?
The Advanced Integrated Defensive Electronic Warfare Suite (AIDEWS) is designed to provide comprehensive protection for aircraft against a wide range of radar and missile threats. It typically integrates multiple electronic warfare functions, such as electronic support measures (ESM) for threat detection and identification, and electronic countermeasures (ECM) for jamming or deception. The 'production effort' suggests that the system is mature and moving into serial production rather than early development. Specific capabilities are often classified, but its purpose is to enhance survivability in contested electromagnetic environments.
How does the $80.2 million contract value compare to historical spending on similar electronic warfare systems?
Direct comparison of the $80.2 million value is difficult without knowing the exact quantity of AIDEWS units being produced and their specific capabilities. However, advanced EW suites are complex and costly. For context, similar programs for integrated EW systems on fighter aircraft can range from tens to hundreds of millions of dollars over their lifecycle, depending on the platform, number of aircraft, and system sophistication. This award appears to be for a significant production run, reflecting the high cost associated with advanced defense technology.
What are the primary risks associated with a sole-source award for advanced defense electronics?
The primary risks of a sole-source award include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. There's also a reduced incentive for the contractor to innovate aggressively or improve efficiency beyond what's contractually required. Furthermore, reliance on a single supplier can create supply chain vulnerabilities and make it difficult to switch providers if performance issues arise or if a more cost-effective solution emerges elsewhere. The government must rely heavily on robust negotiation and oversight to mitigate these risks.
What is the expected impact of this contract on L3Harris Technologies' capabilities and market position?
This contract significantly bolsters L3Harris Technologies' position in the critical defense electronics and electronic warfare market. Securing an $80.2 million production effort for a key system like AIDEWS demonstrates their advanced manufacturing capabilities and strong relationship with the Department of Defense. It likely solidifies their role as a prime provider of EW solutions, potentially leading to follow-on orders or opportunities to integrate AIDEWS with other platforms. This award contributes to their revenue stream and reinforces their expertise in a highly specialized and competitive sector.
What are the implications of the fixed-price incentive (FPI) contract type for cost control and performance?
A Fixed-Price Incentive (FPI) contract aims to provide a middle ground between fixed-price and cost-plus contracts. The government sets a target cost, target profit, and a price ceiling. The contractor is incentivized to keep costs below the target, sharing in the savings with the government (cost sharing). However, if costs exceed the target, the contractor's profit decreases, and they absorb a portion of the overrun up to the ceiling price. This structure encourages cost efficiency while allowing for some flexibility. For performance, the FPI contract often includes specific performance targets, with incentives or penalties tied to achieving them, aligning contractor efforts with government objectives.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA854016R0009
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $80,246,041
Exercised Options: $80,246,041
Current Obligation: $80,246,041
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854017D0002
IDV Type: IDC
Timeline
Start Date: 2016-11-18
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-04-26
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