L3Harris Technologies awarded $204.8M for Counter Communications Systems, with a 2,604-day performance period
Contract Overview
Contract Amount: $204,784,270 ($204.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-10-22
End Date: 2028-12-08
Contract Duration: 2,604 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: R&D
Official Description: COUNTER COMMUNICATIONS SYSTEMS MEADOWLAND PRODUCTION
Place of Performance
Location: PALM BAY, BREVARD County, FLORIDA, 32905
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $204.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: COUNTER COMMUNICATIONS SYSTEMS MEADOWLAND PRODUCTION Key points: 1. Contract value of $204.8 million over approximately 7 years indicates significant investment in advanced communication systems. 2. The fixed-price incentive contract type suggests a focus on achieving specific performance targets while managing costs. 3. Awarded by the Department of the Air Force, this contract likely supports critical national security or operational needs. 4. The R&D nature of the contract (NAICS 541715) points to innovation and development of new technologies. 5. A long performance period of 2,604 days suggests a complex, multi-phase project requiring sustained effort. 6. The absence of small business set-asides may indicate a focus on large, specialized contractors for this type of work.
Value Assessment
Rating: good
The contract value of $204.8 million for Counter Communications Systems over nearly seven years appears substantial, reflecting the complexity and strategic importance of the technology. Benchmarking this against similar R&D contracts for advanced defense systems is challenging without more specific details on the system's capabilities. However, the fixed-price incentive structure suggests an effort to align contractor performance with cost objectives, which can be a good indicator of value if targets are met. The long duration implies a significant scope of work, and the pricing will be further evaluated as performance unfolds.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition is generally expected to yield better price discovery and potentially more innovative solutions by allowing a wide range of qualified contractors to participate.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages the government to seek the best value for its investment. This process helps ensure that public funds are used efficiently by fostering a market where multiple companies vie for the contract.
Public Impact
The primary beneficiaries are likely the Department of the Air Force and potentially other branches of the U.S. military, receiving advanced counter-communications capabilities. The services delivered involve research, development, and potentially production of sophisticated communication systems designed to counter adversary capabilities. The geographic impact is primarily within Florida, where the contractor's facility is located, potentially creating or sustaining high-tech jobs in the region. Workforce implications include the need for specialized engineers, scientists, and technicians in fields such as telecommunications, cybersecurity, and systems engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance targets are difficult to achieve or if scope creep occurs within the long contract duration.
- Dependence on a single contractor (L3Harris Technologies) for a critical defense capability could pose supply chain or strategic risks.
- The R&D nature means the ultimate success and utility of the developed systems are not guaranteed at the outset.
Positive Signals
- Award through full and open competition suggests a robust selection process and potential for competitive pricing.
- Fixed-price incentive contract type encourages contractor efficiency and performance to meet defined objectives.
- Long contract duration allows for sustained development and integration of complex technologies.
- Contractor's established presence and likely experience in defense systems suggest a strong capability to execute the work.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences. The market for counter-communications systems is a niche but critical segment of the broader defense electronics industry. Spending in this area is driven by evolving threats and the need for technological superiority. Comparable spending benchmarks would typically involve other large-scale R&D contracts for defense systems, often in the hundreds of millions of dollars, reflecting the high cost of innovation in this field.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. The nature of advanced R&D in defense often requires specialized expertise and resources typically found in larger corporations. This may limit direct opportunities for small businesses unless they are part of a larger subcontracting team. The impact on the small business ecosystem is likely minimal for this specific prime contract, but it highlights the concentration of large defense R&D awards among major contractors.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the fixed-price incentive contract type, which ties contractor profit to achieving specific performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though detailed technical specifications and performance data may be sensitive. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Advanced Communications Systems Development
- Electronic Warfare Systems
- Department of Defense Research and Development Programs
- Air Force Command and Control Systems
- National Security Technology Innovation
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- FPI contract type requires careful monitoring of performance metrics to ensure value.
- R&D focus implies inherent uncertainty in final product success.
Tags
defense, department-of-the-air-force, research-and-development, counter-communications-systems, l3harris-technologies, fixed-price-incentive, definitive-contract, florida, large-contract, full-and-open-competition, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $204.8 million to L3HARRIS TECHNOLOGIES, INC.. COUNTER COMMUNICATIONS SYSTEMS MEADOWLAND PRODUCTION
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 $204.8 million.
What is the period of performance?
Start: 2021-10-22. End: 2028-12-08.
What is the specific nature of the 'Counter Communications Systems' being developed or produced under this contract?
The provided data does not specify the exact nature of the 'Counter Communications Systems.' However, given the NAICS code (541715 - Research and Development in the Physical, Engineering, and Life Sciences) and the awarding agency (Department of the Air Force), these systems likely involve technologies designed to disrupt, jam, deceive, or otherwise neutralize enemy communication networks. This could encompass a range of capabilities, from electronic warfare systems to sophisticated signal intelligence and cyber warfare tools. The 'production' aspect mentioned in the data might indicate that the contract includes not just R&D but also the manufacturing of a certain number of these systems.
How does the $204.8 million contract value compare to historical spending on similar counter-communications technologies by the Department of the Air Force?
Direct historical spending comparisons for 'Counter Communications Systems' are difficult without more granular data on specific programs. However, the $204.8 million awarded to L3Harris Technologies over approximately seven years represents a significant investment. Large-scale R&D and production contracts for advanced defense systems frequently range in the tens to hundreds of millions of dollars. The Department of the Air Force, like other military branches, consistently invests heavily in electronic warfare and communications superiority, making this contract size plausible within the context of ongoing modernization efforts and evolving threat landscapes. Further analysis would require access to historical contract databases filtered by specific technologies and agencies.
What are the key performance metrics and incentives tied to the 'Fixed Price Incentive' (FPI) contract type for this award?
Under a Fixed Price Incentive (FPI) contract, the final price is determined based on the contractor's performance relative to specified targets. Key performance metrics would be technical objectives related to the counter-communications systems' effectiveness, reliability, and operational capabilities. The incentive aspect means that if the contractor achieves or exceeds these targets, they may receive a higher profit margin, up to a ceiling price. Conversely, if performance falls short, their profit is reduced. The government benefits by having a clear target for performance while sharing some of the risk and reward with the contractor, encouraging innovation and efficiency to meet demanding requirements.
What is L3Harris Technologies' track record in developing and delivering advanced communication or electronic warfare systems to the U.S. military?
L3Harris Technologies is a major defense contractor with a substantial track record in developing and producing advanced communication, electronic warfare, and intelligence systems for the U.S. military and its allies. The company has been involved in numerous programs related to airborne and ground-based electronic warfare, secure communications, and signals intelligence. Their experience likely includes developing complex integrated systems that meet stringent military requirements. This background suggests they possess the technical expertise, manufacturing capabilities, and program management experience necessary to execute a contract of this scale and complexity, although specific past performance on identical systems would require deeper investigation.
What are the potential risks associated with the long performance period (2,604 days) for this R&D contract?
A long performance period of 2,604 days (approximately 7 years) for an R&D contract introduces several potential risks. Firstly, technological obsolescence is a significant concern; the threat landscape and required capabilities can evolve rapidly, potentially making the developed systems outdated before or shortly after deployment. Secondly, managing such a long-term project increases the risk of scope creep, where requirements may change or expand over time, leading to cost increases or delays. Thirdly, maintaining contractor focus and performance consistency over an extended period can be challenging. Finally, economic uncertainties or shifts in defense priorities could impact funding or the strategic relevance of the project.
How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) inform our understanding of this contract's objectives?
The NAICS code 541715 signifies that the primary purpose of this contract is research and development, rather than the procurement of existing goods or services. This indicates that the work involves systematic study and investigation to discover or revise facts, theories, or applications and to develop new or improved products or processes. For 'Counter Communications Systems,' this means the contract likely focuses on innovation, experimentation, and the creation of novel technologies or enhancements in areas like signal processing, electronic countermeasures, network security, or advanced radio frequency applications. It implies a higher degree of uncertainty and a focus on future capabilities rather than immediate, off-the-shelf solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $235,938,647
Exercised Options: $235,938,647
Current Obligation: $204,784,270
Subaward Activity
Number of Subawards: 162
Total Subaward Amount: $39,752,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-10-22
Current End Date: 2028-12-08
Potential End Date: 2028-12-08 00:00:00
Last Modified: 2025-11-21
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