DoD's $358.6M JAVA MAN III contract awarded to L3Harris Technologies for support services

Contract Overview

Contract Amount: $358,629,704 ($358.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2010-10-28

End Date: 2013-02-28

Contract Duration: 854 days

Daily Burn Rate: $419.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JAVA MAN III

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $358.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: JAVA MAN III Key points: 1. Contract value represents a significant investment in specialized support services. 2. Awarded on a non-competitive basis, raising questions about potential cost efficiencies. 3. Performance period spans over two years, indicating a substantial operational requirement. 4. The contract falls under 'All Other Support Services,' a broad category. 5. Geographic location of the contractor is Texas.

Value Assessment

Rating: questionable

The total contract value of $358.6 million for JAVA MAN III is substantial. Without specific performance metrics or comparable contracts for similar 'All Other Support Services,' it is difficult to benchmark value for money. The lack of competition suggests that pricing may not have been subjected to market pressures, potentially leading to higher costs than a competitive procurement might yield. Further analysis of the specific services rendered and their necessity would be required for a more definitive 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 approach is typically used when only one responsible source is available or when a compelling justification exists for avoiding competition. The lack of multiple bidders means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not secure the most competitive pricing. It also limits opportunities for other businesses to compete for and win federal contracts.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential support services. Services provided are categorized under 'All Other Support Services,' indicating a broad range of potential operational or administrative support. The contract's geographic impact is tied to the contractor's location in Texas. Workforce implications are likely within L3Harris Technologies, potentially involving specialized personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Broad service category makes specific value assessment challenging.
Long performance period without clear competitive benchmarks.

Positive Signals

Award to a known entity, L3Harris Technologies, suggests potential for established capabilities.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The 'All Other Support Services' category (NAICS 561990) is broad and encompasses a wide array of non-professional, non-technical support activities. This contract, valued at over $358 million, represents a significant portion of spending within this diverse sector. Comparable spending benchmarks are difficult to establish due to the category's breadth, but this award indicates a substantial requirement for specialized support within the Department of Defense.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The award to a large prime contractor like L3Harris Technologies suggests that subcontracting opportunities for small businesses may be limited or at the discretion of the prime.

Oversight & Accountability

As a definitive contract awarded by the Department of Defense, oversight would typically be managed by the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases, though the specifics of sole-source justifications may have limited public disclosure.

Related Government Programs

Department of Defense Support Services Contracts
L3Harris Technologies Contracts
Sole-Source Defense Procurements
NAICS 561990 Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency on Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $358.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. JAVA MAN III

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 $358.6 million.

What is the period of performance?

Start: 2010-10-28. End: 2013-02-28.

What specific services are included under the 'All Other Support Services' category for the JAVA MAN III contract?

The 'All Other Support Services' category (NAICS 561990) is very broad and can encompass a wide range of activities not classified elsewhere. For the JAVA MAN III contract, specific details regarding the services rendered are not publicly available in the provided data. However, this category often includes services such as facilities support, logistical support, administrative support, and other miscellaneous support functions. Given the Department of Defense as the agency, these services could range from base operations support to specialized technical assistance that doesn't fit into more defined categories. A deeper dive into contract line item numbers (CLINs) or contract performance reports would be necessary to ascertain the precise nature of the services.

What is the typical cost range for contracts under NAICS code 561990 within the Department of Defense?

The cost range for contracts under NAICS code 561990 within the Department of Defense can vary dramatically due to the broad nature of the category. While the JAVA MAN III contract at $358.6 million is substantial, other contracts within this code could range from a few thousand dollars for minor support tasks to hundreds of millions for large-scale operational support. Benchmarking is challenging because 'All Other Support Services' lacks specificity. However, a contract of this magnitude suggests a significant, long-term requirement for comprehensive support, likely involving multiple service elements and a large contractor workforce. Without more granular data on the specific services provided, direct cost comparisons are difficult.

What are the risks associated with sole-source contracts of this magnitude?

Sole-source contracts of this magnitude, like the $358.6 million JAVA MAN III award, carry several risks. Foremost is the risk of paying a premium due to the lack of competition, as the contractor may not feel pressured to offer the most competitive pricing. There's also a risk of reduced innovation, as a competitive environment often spurs contractors to propose more efficient or advanced solutions. Furthermore, sole-source awards can create a perception of favoritism or a lack of due diligence in exploring alternative providers. For the government, it means potentially missing out on better value or more suitable offerings that could have emerged from a competitive process. Oversight becomes even more critical to ensure fair pricing and adequate performance.

How does the firm fixed price (FFP) contract type mitigate risks for the government on this contract?

The Firm Fixed Price (FFP) contract type for the JAVA MAN III contract offers significant risk mitigation for the government. Under an FFP agreement, the contractor assumes most of the risk for cost overruns. This means that L3Harris Technologies is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the Department of Defense with budget certainty and predictability, as the total cost is known upfront. It incentivizes the contractor to manage their costs efficiently to maximize profit. While the government benefits from price certainty, it's crucial that the initial price negotiated was fair and reasonable, especially given the sole-source nature of the award.

What is L3Harris Technologies' track record with large Department of Defense contracts?

L3Harris Technologies is a major defense contractor with a substantial track record of securing and performing on large contracts with the Department of Defense across various sectors, including aerospace, communications, and electronic systems. While the specific details of their performance on the JAVA MAN III contract are not provided, their status as a large, established entity suggests they possess the resources, expertise, and infrastructure to handle significant government procurements. Their broader portfolio includes numerous complex programs, indicating a capacity for managing large-scale projects and meeting stringent defense requirements. However, as with any large contractor, performance can vary across individual contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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: $358,629,704

Exercised Options: $358,629,704

Current Obligation: $358,629,704

Subaward Activity

Number of Subawards: 149

Total Subaward Amount: $44,039,884

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline