DoD awards L3Harris Technologies $84M for JCREW EW system development, facing limited competition
Contract Overview
Contract Amount: $84,076,293 ($84.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2013-03-31
Contract Duration: 1,277 days
Daily Burn Rate: $65.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: AWARD OF CONTRACT FOR ALL MATERIAL AND SERVICES TO SUPPORT SYSTEM DEVELOPMENT AND DEMONSTRATION PHASE THROUGH PRELIMINARY DESIGN REVIEW FOR THE THREE CAPABILITIES (DISMOUNTED, MOUNTED, AND FIXED SITE) OF THE JOINT COUNTER RADIO CONTROLLED IMPROVISED EXPLOSIVE DEVICE (RCIED) ELECTRONIC WARFARE (JCREW) 3.3 SYSTEM OF SYSTEMS 71 DEGREES CELSIUS AMBIENT TEMPERATURE.
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $84.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: AWARD OF CONTRACT FOR ALL MATERIAL AND SERVICES TO SUPPORT SYSTEM DEVELOPMENT AND DEMONSTRATION PHASE THROUGH PRELIMINARY DESIGN REVIEW FOR THE THREE CAPABILITIES (DISMOUNTED, MOUNTED, AND FIXED SITE) OF THE JOINT COUNTER RADIO CONTROLLED IMPROVISED EXPLOSIVE DEVICE (RCIED) ELECT… Key points: 1. Contract value of $84.1M for system development and demonstration phase. 2. Awarded to L3Harris Technologies, Inc. for the JCREW 3.3 system. 3. Focuses on counter radio-controlled improvised explosive device (RCIED) electronic warfare. 4. Contract type is Cost Plus Incentive Fee, indicating shared risk. 5. Performance period spans from October 2009 to March 2013. 6. System capabilities include dismounted, mounted, and fixed site applications. 7. Ambient temperature requirement of 71 degrees Celsius noted.
Value Assessment
Rating: fair
The contract value of $84.1 million for system development and demonstration appears within a reasonable range for complex electronic warfare systems. However, without specific benchmarks for similar RCIED EW system development contracts, a precise value-for-money assessment is challenging. The Cost Plus Incentive Fee structure suggests an attempt to control costs while incentivizing performance, but the final cost could vary. Further analysis would require comparing this award to other developmental contracts for similar capabilities.
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. The presence of 3 bidders suggests a moderate level of competition for this specialized system. While full and open competition is generally favorable for price discovery, the specific number of bidders and the nature of the technology could influence the ultimate competitiveness of the bids received.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally leads to more competitive pricing and a wider range of innovative solutions being considered, potentially reducing overall program costs.
Public Impact
The primary beneficiaries are military personnel requiring protection against RCIED threats. Services delivered include system development and demonstration for the JCREW 3.3 system. The geographic impact is likely global, supporting deployed forces. Workforce implications include specialized engineering and technical roles within L3Harris Technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to cost overruns if not closely managed.
- The duration of the contract (over 3 years) for a development phase may indicate complexity or potential for delays.
- Limited specific details on performance metrics make it difficult to assess efficiency.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The system addresses a critical threat (RCIEDs), indicating strategic importance.
- L3Harris Technologies is a known entity in defense contracting, suggesting established capabilities.
Sector Analysis
This contract falls within the defense electronics and electronic warfare sector, a highly specialized and technologically advanced segment of the aerospace and defense industry. The market for counter-IED technology is driven by ongoing global security needs. Spending in this sector is often characterized by long development cycles, high R&D investment, and significant government procurement. Comparable spending benchmarks would typically involve other major defense system development contracts.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Therefore, the direct impact on small businesses through set-asides is unlikely. However, L3Harris Technologies, as a large prime contractor, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. The extent of such subcontracting would require further investigation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the Cost Plus Incentive Fee structure, which links contractor profit to performance. Transparency is generally maintained through contract awards databases, though detailed performance data may be limited.
Related Government Programs
- Joint Counter Radio Controlled Improvised Explosive Device (RCIED) Electronic Warfare (JCREW)
- Electronic Warfare Systems
- Counter-Improvised Explosive Device (C-IED) Technologies
- System Development and Demonstration Contracts
- Department of Defense Procurement
Risk Flags
- Potential for cost growth due to CPIF contract type.
- Complexity of developing advanced electronic warfare systems.
- Environmental operating conditions (high temperature) may pose technical challenges.
Tags
defense, department-of-defense, l3harris-technologies, electronic-warfare, jcrew, system-development, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, new-jersey, 334511, counter-ied
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.1 million to L3HARRIS TECHNOLOGIES, INC.. AWARD OF CONTRACT FOR ALL MATERIAL AND SERVICES TO SUPPORT SYSTEM DEVELOPMENT AND DEMONSTRATION PHASE THROUGH PRELIMINARY DESIGN REVIEW FOR THE THREE CAPABILITIES (DISMOUNTED, MOUNTED, AND FIXED SITE) OF THE JOINT COUNTER RADIO CONTROLLED IMPROVISED EXPLOSIVE DEVICE (RCIED) ELECTRONIC WARFARE (JCREW) 3.3 SYSTEM OF SYSTEMS 71 DEGREES CELSIUS AMBIENT TEMPERATURE.
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 $84.1 million.
What is the period of performance?
Start: 2009-10-01. End: 2013-03-31.
What is L3Harris Technologies' track record with similar electronic warfare system development contracts?
L3Harris Technologies, Inc. (and its predecessor companies) has a significant history in developing and producing electronic warfare systems for the U.S. military. They have been involved in various programs related to signal intelligence, electronic attack, and electronic protection. Their experience likely includes developing complex systems with stringent performance requirements, similar to the JCREW program. A detailed review of their past performance on comparable contracts, including any past performance issues or successes, would provide further insight into their capability to execute this specific JCREW development contract effectively. This would involve examining contract awards, performance evaluations, and any associated litigation or disputes.
How does the $84.1 million award compare to the total lifecycle cost of the JCREW system?
The $84.1 million award represents the funding allocated for the System Development and Demonstration (SDD) phase through Preliminary Design Review (PDR) for the JCREW 3.3 system. This phase is typically one of the earlier, albeit significant, stages in a weapon system's lifecycle. The total lifecycle cost of the JCREW system would encompass not only development but also production, deployment, sustainment, and eventual disposal. Therefore, $84.1 million is a portion of the overall investment. Without data on the subsequent production and sustainment phases, it's impossible to determine the full lifecycle cost. However, development costs often represent a substantial upfront investment, and this figure provides a baseline for that initial phase.
What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this program?
The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for a program like JCREW development revolve around cost control and contractor incentives. While CPIF aims to incentivize efficiency by sharing cost savings or overruns between the government and the contractor based on pre-defined targets, it can still lead to higher-than-expected costs if targets are not well-established or if the contractor prioritizes achieving incentive fees over true cost minimization. There's a risk that the contractor might incur costs to reach performance targets that drive higher incentive fees, potentially inflating the final price. Effective government oversight is crucial to ensure that the incentive structure genuinely benefits the program and taxpayers, rather than encouraging unnecessary spending.
What is the significance of the '71 degrees Celsius ambient temperature' requirement?
The requirement for the JCREW 3.3 system to operate at a '71 degrees Celsius ambient temperature' signifies a critical environmental performance parameter. This temperature is significantly above standard room temperature (around 20-25°C) and even typical operating temperatures in many climates. It indicates that the system is designed for harsh, high-temperature environments, such as those encountered in desert regions or within enclosed vehicle spaces where heat buildup is substantial. Meeting this requirement necessitates robust thermal management solutions, including advanced cooling systems, heat-resistant materials, and potentially specialized electronics designed to function reliably under extreme thermal stress. Failure to meet this specification could render the system inoperable or unreliable in its intended operational theaters.
How does the competition level (3 bidders) impact the potential for cost savings for the government?
Having three bidders in a full and open competition generally suggests a moderate level of competition. While more bidders typically lead to greater price pressure and potentially lower costs, three bidders still provide a basis for comparison and negotiation. It indicates that the market is not a monopoly or duopoly, allowing the government to select from multiple qualified sources. However, the effectiveness of this competition in driving down costs depends on factors such as the specificity of the requirements, the perceived market size, the barriers to entry for potential bidders, and the government's negotiation strategy. If the technology is highly specialized, three bidders might represent a significant portion of the available qualified sources, making the competition robust enough to yield reasonable prices.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002409R6303
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $223,153,425
Exercised Options: $217,536,493
Current Obligation: $84,076,293
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-10-01
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2023-08-16
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