Air Force awards $247M contract to L3Harris for aircraft manufacturing, with delivery by August 2027
Contract Overview
Contract Amount: $247,336,095 ($247.3M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2025-06-02
End Date: 2027-08-02
Contract Duration: 791 days
Daily Burn Rate: $312.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FA863725FB005 - DELIVERY ORDER 09 REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $247.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: FA863725FB005 - DELIVERY ORDER 09 REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT Key points: 1. Significant award to L3Harris Technologies for aircraft manufacturing. 2. Contract duration of 791 days indicates a substantial project. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing.
Value Assessment
Rating: good
The total award amount of $247,336,095.14 is substantial. Benchmarking against similar aircraft manufacturing contracts would be necessary for a precise pricing assessment, but the firm fixed price structure suggests a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a process designed to secure favorable pricing.
Public Impact
Supports the Department of the Air Force's operational capabilities. Contributes to the aerospace and defense manufacturing sector. Potential for job creation and economic activity in Texas. Ensures the availability of critical aircraft manufacturing services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs.
- Dependence on a single contractor for this specific delivery order.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Full and open competition promotes value.
- Clear delivery dates provide schedule certainty.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically aircraft manufacturing. Spending in this sector is often driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
The data indicates this contract was awarded to L3Harris Technologies Integrated Systems L.P. and does not specify any small business participation. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The award is a delivery order against a base IDIQ contract, suggesting a structured procurement process. Oversight would focus on adherence to the statement of work, delivery schedules, and quality control measures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is substantial, increasing exposure to market fluctuations.
- Potential for supply chain disruptions affecting delivery.
- Reliance on L3Harris for critical aircraft manufacturing needs.
- Scope definition in SOW is critical for cost control.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $247.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. FA863725FB005 - DELIVERY ORDER 09 REQUIREMENTS IN ACCORDANCE WITH ATTACHMENT 01 - STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $247.3 million.
What is the period of performance?
Start: 2025-06-02. End: 2027-08-02.
What specific aircraft components or systems does this delivery order cover?
The provided data does not specify the exact components or systems. The 'STATEMENT OF WORK ON THE BASE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT' and 'ATTACHMENT 01' would contain these details. Understanding the scope is crucial for assessing value and potential risks.
How does the $247M award compare to historical spending on similar aircraft manufacturing requirements?
Without historical data on comparable aircraft manufacturing contracts, it's difficult to definitively assess if $247M is high or low. Benchmarking against similar procurements by the Air Force or other branches for comparable aircraft types or manufacturing services would provide context for value for money.
What are the key performance indicators (KPIs) for this delivery order to ensure effectiveness?
Key performance indicators would likely include on-time delivery, adherence to technical specifications outlined in the Statement of Work, quality control metrics (e.g., defect rates), and compliance with safety standards. The contract's success hinges on meeting these defined performance expectations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $247,336,095
Exercised Options: $247,336,095
Current Obligation: $247,336,095
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $20,787,696
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA863722DB001
IDV Type: IDC
Timeline
Start Date: 2025-06-02
Current End Date: 2027-08-02
Potential End Date: 2027-08-02 00:00:00
Last Modified: 2026-01-20
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