DoD's $517M Space Control Depot Support Contract Awarded to L3Harris Technologies Faces Scrutiny
Contract Overview
Contract Amount: $517,105,630 ($517.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-02-01
End Date: 2019-03-31
Contract Duration: 4,076 days
Daily Burn Rate: $126.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SPACE CONTROL DEPOT SUPPORT (SCDS) PROGRAM
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $517.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: SPACE CONTROL DEPOT SUPPORT (SCDS) PROGRAM Key points: 1. The contract awarded to L3Harris Technologies for Space Control Depot Support (SCDS) is a significant expenditure of $517 million. 2. L3Harris Technologies, a major defense contractor, secured this award. 3. The contract's duration of over 11 years (4076 days) raises questions about long-term value and potential for cost overruns. 4. The sector is 'Other Electronic Component Manufacturing', indicating a focus on specialized defense hardware.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. The awarded amount of $517M over a long period warrants close monitoring for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and CPFF structure may have limited the true price discovery and potential for savings.
Taxpayer Impact: Taxpayer funds are being utilized for a long-term, potentially high-cost contract. Effective oversight is crucial to ensure value for money.
Public Impact
Significant taxpayer investment in space control capabilities. Potential impact on the broader defense electronics manufacturing sector. Long-term commitment to a single contractor for critical support services. Questions regarding the efficiency and cost-effectiveness of extended CPFF contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 11 years)
- Cost Plus Fixed Fee (CPFF) contract type
- Lack of specific performance metrics or benchmarks provided
- No indication of small business participation
Positive Signals
- Awarded under full and open competition
- Supports critical space control functions
Sector Analysis
The 'Other Electronic Component Manufacturing' sector is vital for national defense, providing specialized hardware. Benchmarks for similar long-term support contracts are difficult to ascertain without more specific details on the services provided.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in a significant defense award.
Oversight & Accountability
The long duration and CPFF nature of this contract necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure cost control and performance. Accountability for meeting program objectives is paramount.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of technological obsolescence over the contract's long duration
- Lack of transparency regarding small business participation
- Limited insight into specific performance metrics and value realization
- Extended reliance on a single contractor may reduce future competition
Tags
other-electronic-component-manufacturing, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $517.1 million to L3HARRIS TECHNOLOGIES, INC.. SPACE CONTROL DEPOT SUPPORT (SCDS) PROGRAM
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $517.1 million.
What is the period of performance?
Start: 2008-02-01. End: 2019-03-31.
What specific performance metrics were established to ensure the $517 million investment yields effective space control depot support?
The provided data does not specify performance metrics. For a contract of this magnitude and duration, clear, measurable, and achievable performance metrics are essential to gauge effectiveness and ensure the Department of Defense receives the intended value. Without them, assessing the program's success becomes subjective and reliant on contractor reporting.
How does the Cost Plus Fixed Fee structure mitigate risks associated with long-term, complex defense support contracts?
The CPFF structure aims to provide the contractor with a reasonable profit while allowing flexibility for evolving requirements. However, it shifts cost risk to the government. For long-term contracts, robust oversight, detailed cost tracking, and clear scope definition are critical to prevent cost overruns and ensure the 'fixed fee' remains appropriate for the effort expended.
What is the long-term strategic advantage of awarding an 11-year contract for depot support in the 'Other Electronic Component Manufacturing' sector?
An 11-year contract can offer strategic advantages like contractor stability, specialized knowledge retention, and predictable support for critical systems. However, it also risks locking the DoD into potentially outdated technologies or less competitive pricing over time. The benefit hinges on the stability of the technology and the government's ability to manage the contract effectively throughout its lifecycle.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $599,096,901
Exercised Options: $557,926,886
Current Obligation: $517,105,630
Actual Outlays: $476,951
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-02-01
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2023-10-31
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