Stock Markets January 28, 2026

L3Harris Receives $62.7M Contract Modification for Space Surveillance Work

Option Year Seven raises cumulative contract value to $1.51 billion, with work scheduled through January 2027 in Colorado Springs

By Ajmal Hussain LHX
L3Harris Receives $62.7M Contract Modification for Space Surveillance Work
LHX

L3Harris Technologies has been granted a $62.7 million modification - designated P00353 - to an existing Department of War contract covering radar and optical space surveillance systems and sustainment work. The change represents Option Year Seven and lifts the contract's total value to $1.51 billion. Performance is slated for Colorado Springs and is expected to conclude by January 31, 2027. No funds were obligated at the time of award; incremental fiscal 2026 funds will be applied before the performance period begins. The Space Systems Command Directorate of Contracting at Peterson Space Force Base is the contracting authority.

Key Points

  • The $62.7 million modification, P00353, is Option Year Seven of contract FA8823-20-C-0004 and increases the contract's cumulative value from $1.44 billion to $1.51 billion.
  • Designated work covers Eglin Radar, an Electro Optical Deep Space Surveillance Telescope, the Space Surveillance Telescope, and Agile Portfolio Engineering Sustainment, with performance in Colorado Springs, Colorado and completion expected by January 31, 2027.
  • No funds were obligated at the time of the award; the contract will be incrementally funded with fiscal 2026 O&M and fiscal 2026 RDT&E funds prior to the start of the performance period. The Space Systems Command Directorate of Contracting at Peterson Space Force Base is the contracting activity.

L3Harris Technologies Inc. has been awarded a $62.7 million modification to an existing U.S. Department of War contract, according to the terms of the update. The change, recorded as modification P00353, applies to contract FA8823-20-C-0004 and covers systems and sustainment work related to radar and optical space surveillance.

The modification represents Option Year Seven on the contract. With the addition of this funding, the contract's cumulative value rises to $1.51 billion from its previous total of $1.44 billion.

Specifically, the contract encompasses work for the Eglin Radar, a round-based Electro Optical Deep Space Surveillance Telescope, the Space Surveillance Telescope, and Agile Portfolio Engineering Sustainment. The scope named in the modification retains those program elements as the focus of continued performance under the contract.

All work under this modification is scheduled to be carried out in Colorado Springs, Colorado. The expected completion date for the tasks associated with the modification is January 31, 2027.

At the time the modification was awarded, no funds were being obligated. The award documentation notes that the contract will be funded on an incremental basis using fiscal 2026 operations and maintenance (O&M) funds and fiscal 2026 research, development, test and evaluation (RDT&E) funds, and that those funds will be applied prior to the start of the performance period.

The contracting activity overseeing the award is the Space Systems Command Directorate of Contracting located at Peterson Space Force Base in Colorado, which is responsible for administrating the contract modification.


This update leaves intact the previously specified program elements and timelines. It also identifies the funding mechanism and contracting office that will manage the incrementally funded Option Year Seven work through the stated completion date.

Risks

  • No funds were obligated when the modification was awarded - the work depends on incremental funding from fiscal 2026 O&M and RDT&E appropriations, which introduces funding-timing risk for defense and aerospace suppliers.
  • The stated completion date of January 31, 2027, creates a fixed timeline that could impact program scheduling and contractor delivery if unanticipated delays occur, affecting aerospace and space systems program execution.
  • The modification preserves existing program scope and funding mechanics; any changes in fiscal 2026 budget priorities could affect the availability of the O&M and RDT&E funds designated for this Option Year, introducing uncertainty for government contracting and defense sectors.

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