Stock Markets July 13, 2026 05:27 PM

L3Harris Awarded $70.8 Million Navy Contract Modification

Modification exercises options for equipment, components and engineering support with work split across three U.S. sites through 2029

By Derek Hwang
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L3Harris Technologies received a $70.8 million modification to an existing U.S. Navy contract to supply equipment, components and engineering support. The work, structured under a mix of firm-fixed-price and cost-plus-fixed-fee arrangements, will be carried out at facilities in Millersville, Maryland; Liverpool, New York; and Ashaway, Rhode Island, with completion slated for October 2029. Funding is provided from multiple fiscal year appropriations.

L3Harris Awarded $70.8 Million Navy Contract Modification
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Key Points

  • L3Harris received a $70.8 million modification to Navy contract N00024-24-C-6200 to exercise options for equipment, components and engineering support services.
  • Work will be carried out in Millersville, Maryland (57%), Liverpool, New York (40%), and Ashaway, Rhode Island (3%), with scheduled completion by October 2029.
  • The modification is financed via multiple fiscal year appropriations: $50.3 million from fiscal 2026 other procurement funds (71%), and $10.1 million each from fiscal 2024 and 2025 shipbuilding and conversion funds (15% each).

L3Harris Technologies has been awarded a $70.8 million modification to an existing contract with the U.S. Navy. The change to contract N00024-24-C-6200 authorizes the exercise of options for Navy equipment, components and engineering support services under the scope of that agreement.

The company will execute the work across three U.S. locations. Millersville, Maryland, is set to perform the largest share, representing 57% of the work. Liverpool, New York, will account for 40% of the tasks, while Ashaway, Rhode Island, will handle the remaining 3%.

Contractually, the modification combines firm-fixed-price elements with cost-plus-fixed-fee provisions. The timeline tied to this award runs through October 2029, which is the scheduled completion date for work under the modification.


Funding details

The Navy will obligate funds drawn from multiple fiscal year appropriations to support the modification. The bulk of the financing comes from fiscal 2026 other procurement funds, which will contribute $50.3 million, equating to 71% of the total modification value. In addition, shipbuilding and conversion funds from fiscal 2024 and fiscal 2025 will each provide $10.1 million, representing 15% apiece of the modification's total value.

Funding Source Amount Share
Fiscal 2026 other procurement $50.3 million 71%
Fiscal 2024 shipbuilding and conversion $10.1 million 15%
Fiscal 2025 shipbuilding and conversion $10.1 million 15%

Context and next steps

Work under this contract modification will proceed at the stated locations until the October 2029 completion date. The modification formalizes the exercise of options that were available under contract N00024-24-C-6200 and specifies the mix of pricing mechanisms and funding sources to be used.

The award details the geographic distribution of tasks and earmarks the primary funding stream as fiscal 2026 other procurement, supplemented by shipbuilding and conversion appropriations from fiscal 2024 and 2025.

Risks

  • Work completion is scheduled through October 2029, which exposes program execution to potential schedule and delivery risks over a multi-year period - this could affect defense supply chain and manufacturing operations.
  • The contract uses a combination of firm-fixed-price and cost-plus-fixed-fee arrangements, which implies differing cost exposure profiles for the contractor across contract line items.
  • Funding for the modification is drawn from multiple fiscal year appropriations; changes in appropriation levels or timing could impact cash flow or work pacing tied to the award.

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