DoD's $153M Wideband SATCOM Contract Awarded to L3Harris Under Full and Open Competition
Contract Overview
Contract Amount: $153,245,262 ($153.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-01
End Date: 2027-07-31
Contract Duration: 3,164 days
Daily Burn Rate: $48.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THIS PERFORMANCE WORK STATEMENT (PWS) FOR WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) OPERATIONS AND TECHNICAL SUPPORT II (WSOTS II) DEFINES THE REQUIREMENTS TO PROVIDE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY FORCES STRATEGIC COMMAND (USASMDC/ARSTRAT) WITH SITE SUPPORT AND SERVICES IN SUPPORT OF THE WIDEBAND SATCOM MISSIONS OF THE ORGANIZATIONS IDENTIFIED IN THIS PWS AND THE WIDEBAND SATCOM OPERATIONAL MANAGEMENT SYSTEM (WSOMS). THE WSOMS SUPPORTS PLANNING, MANAGEMENT, AND CONTROL OPERATIONS AND OTHER SERVICES FOR THE WIDEBAND GLOBAL SATCOM (WGS) SYSTEM AND DEFENSE SATELLITE COMMUNICATIONS SYSTEM (DSCS).
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $153.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THIS PERFORMANCE WORK STATEMENT (PWS) FOR WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) OPERATIONS AND TECHNICAL SUPPORT II (WSOTS II) DEFINES THE REQUIREMENTS TO PROVIDE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY FORCES STRATEGIC COMMAND (USASMDC/ARSTRAT) WITH SITE SUPPORT AN… Key points: 1. The contract supports critical Wideband Satellite Communications (SATCOM) operations and technical support for the U.S. Army. 2. L3Harris Technologies, Inc. secured the award, indicating significant market presence in this specialized sector. 3. The contract's cost-plus-fixed-fee structure may present cost-overrun risks if not closely managed. 4. The 'All Other Telecommunications' sector benchmark suggests this is a substantial investment within the broader communications industry.
Value Assessment
Rating: good
The total contract value of $153.2 million over its period of performance is substantial. Benchmarking against similar large-scale SATCOM support contracts is necessary to fully assess value, but the duration and scope suggest a competitive pricing strategy was likely employed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a definitive contract suggests a well-defined scope of work.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives down costs through market forces, ensuring efficient use of public funds.
Public Impact
Ensures continuous and reliable satellite communication services for U.S. Army strategic command and control. Supports national security objectives by maintaining vital Wideband SATCOM infrastructure. The contract's duration of over 7 years provides long-term stability for essential communication services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit.
- Potential for scope creep in long-term, complex service contracts.
- Reliance on a single contractor for critical SATCOM operations.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long contract duration provides service continuity.
- Supports critical military communication infrastructure.
Sector Analysis
This contract falls within the telecommunications sector, specifically focusing on satellite communications. Spending in this area is crucial for maintaining global command and control capabilities, with benchmarks varying based on the complexity and scale of the services provided.
Small Business Impact
The data indicates this contract was not set aside for small businesses and that the awardee is not a small business. Therefore, there is no direct small business participation evident in this specific award.
Oversight & Accountability
The contract's cost-plus-fixed-fee structure necessitates robust oversight from the Department of Defense to monitor costs and ensure performance aligns with the PWS. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- All Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Potential for service disruption if contractor performance falters.
- Long-term reliance on a single vendor.
- Cybersecurity risks associated with critical communication infrastructure.
Tags
all-other-telecommunications, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.2 million to L3HARRIS TECHNOLOGIES, INC.. THIS PERFORMANCE WORK STATEMENT (PWS) FOR WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) OPERATIONS AND TECHNICAL SUPPORT II (WSOTS II) DEFINES THE REQUIREMENTS TO PROVIDE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY FORCES STRATEGIC COMMAND (USASMDC/ARSTRAT) WITH SITE SUPPORT AND SERVICES IN SUPPORT OF THE WIDEBAND SATCOM MISSIONS OF THE ORGANIZATIONS IDENTIFIED IN THIS PWS AND THE WIDEBAND SATCOM OPERATIONAL MANAGEMENT SYSTEM (WSOMS). THE WSOMS SUPPORTS PLANNING, MANAGEMENT, AND CONTROL OPERA
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 $153.2 million.
What is the period of performance?
Start: 2018-12-01. End: 2027-07-31.
What are the specific performance metrics and key performance indicators (KPIs) used to evaluate L3Harris's success in providing Wideband SATCOM operations and technical support?
The Performance Work Statement (PWS) would typically detail specific performance metrics and KPIs. These often include metrics related to system uptime, response times for technical support, data transmission reliability, and adherence to security protocols. The government would monitor these KPIs to ensure the contractor meets the required service levels and to inform future contract decisions.
How does the cost-plus-fixed-fee (CPFF) structure impact the government's ability to control costs and mitigate financial risks in this contract?
A CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee provides some incentive for efficiency, it can also lead to cost overruns if the contractor's costs exceed initial estimates. Robust government oversight, clear cost accounting standards, and regular audits are essential to manage these risks and ensure the government pays a fair price.
What is the potential impact on national security if L3Harris Technologies, Inc. fails to meet the critical requirements of this Wideband SATCOM contract?
Failure to meet requirements could severely disrupt critical U.S. Army command and control operations, impacting strategic decision-making and global mission execution. This could compromise national security by degrading communication capabilities essential for military readiness and response. Contingency plans and alternative providers would be crucial to mitigate such risks.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9126017R0003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1330 INVERNESS DR, COLORADO SPRINGS, CO, 80910
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: $249,804,334
Exercised Options: $232,339,406
Current Obligation: $153,245,262
Actual Outlays: $14,236,445
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $4,450,405
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-01
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2026-01-13
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)