Air Force Awards L3Harris $29.9M for Mission Thread Software Development

Contract Overview

Contract Amount: $29,933,750 ($29.9M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-01

End Date: 2026-01-31

Contract Duration: 364 days

Daily Burn Rate: $82.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO DEVELOP, INTEGRATE AND DELIVER MISSION THREAD SOFTWARE WITHIN ATLAS TO MEET ATLAS INITIAL OPERATIONAL CAPABILITY AND TO MATURE AND STABILIZE THE TECHNICAL BASELINE SOFTWARE.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to L3HARRIS TECHNOLOGIES, INC. for work described as: TO DEVELOP, INTEGRATE AND DELIVER MISSION THREAD SOFTWARE WITHIN ATLAS TO MEET ATLAS INITIAL OPERATIONAL CAPABILITY AND TO MATURE AND STABILIZE THE TECHNICAL BASELINE SOFTWARE. Key points: 1. Contract focuses on critical software for ATLAS Initial Operational Capability. 2. L3Harris Technologies, Inc. is the sole awardee. 3. High risk associated with R&D contracts and sole-source awards. 4. Spending falls under Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, limiting price discovery and competition. The lack of competition raises concerns about whether the government received the best possible price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from competitive pricing, potentially leading to higher overall costs.

Public Impact

Development of mission-critical software for the Air Force's ATLAS program. Potential for technological advancements in defense systems. Ensures continued modernization of Air Force capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for innovation but often carries higher risk and less predictable outcomes.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which is common for highly specialized R&D contracts.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting milestones and managing costs effectively within the fixed fee structure.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to L3HARRIS TECHNOLOGIES, INC.. TO DEVELOP, INTEGRATE AND DELIVER MISSION THREAD SOFTWARE WITHIN ATLAS TO MEET ATLAS INITIAL OPERATIONAL CAPABILITY AND TO MATURE AND STABILIZE THE TECHNICAL BASELINE SOFTWARE.

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 $29.9 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-01-31.

What specific performance metrics will be used to evaluate the success of the mission thread software development?

Performance metrics will likely focus on the successful integration of the software within the ATLAS system, meeting the Initial Operational Capability (IOC) requirements, and the stability of the technical baseline. Specific metrics would be detailed in the contract's Statement of Work (SOW) and could include functionality tests, performance benchmarks, and security compliance checks.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from a unique capability, proprietary technology, or urgent need where only one contractor can fulfill the requirement. For R&D contracts, this might involve specialized expertise or prior development work that makes competition impractical or detrimental to the project's timeline and objectives.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns?

Management of a Cost Plus Fixed Fee contract involves rigorous oversight of incurred costs, regular progress reviews, and strict adherence to the defined scope of work. The government contracting officer will monitor expenditures closely, ensuring they align with the fixed fee and project milestones. Any deviations or scope changes would require formal modification and negotiation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14425 PENROSE PL STE 500, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,089,611

Exercised Options: $32,712,608

Current Obligation: $29,933,750

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA880621D0003

IDV Type: IDC

Timeline

Start Date: 2025-02-01

Current End Date: 2026-01-31

Potential End Date: 2026-01-31 00:00:00

Last Modified: 2025-11-19

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