DoD awards $69.3M for Apache AH-64E helicopter teaming hardware and services to L3 Technologies
Contract Overview
Contract Amount: $69,348,326 ($69.3M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-01
End Date: 2020-06-30
Contract Duration: 1,033 days
Daily Burn Rate: $67.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF MANNED/UNMANNED TEAMING HARDWARE, COMPONENTS, AND SERVICES ORDERING PERIOD 1 FOR THE APACHE AH-64E HELICOPTER.
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $69.3 million to L3 TECHNOLOGIES, INC. for work described as: IGF::OT::IGF MANNED/UNMANNED TEAMING HARDWARE, COMPONENTS, AND SERVICES ORDERING PERIOD 1 FOR THE APACHE AH-64E HELICOPTER. Key points: 1. Contract awarded to L3 Technologies for specialized Apache helicopter components. 2. Significant investment in advanced aviation technology for the Army. 3. Potential for cost overruns due to lack of competition. 4. Focus on enhancing helicopter capabilities through integrated teaming systems.
Value Assessment
Rating: fair
The contract value of $69.3M for a 3-year period appears reasonable for specialized aviation components. However, without competitive bidding, it's difficult to ascertain if this represents the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential helicopter components and services.
Public Impact
Enhances the combat effectiveness of the Apache AH-64E fleet. Supports critical defense capabilities for the U.S. Army. Potential impact on future modernization efforts for attack helicopters.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for price escalation without competitive pressure.
Positive Signals
- Supports critical defense platform.
- Addresses specific technological needs.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is driven by military modernization and sustainment needs.
Small Business Impact
This contract was awarded to L3 Technologies, Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract management reviews and performance monitoring to ensure delivery and quality standards are met.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.3 million to L3 TECHNOLOGIES, INC.. IGF::OT::IGF MANNED/UNMANNED TEAMING HARDWARE, COMPONENTS, AND SERVICES ORDERING PERIOD 1 FOR THE APACHE AH-64E HELICOPTER.
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $69.3 million.
What is the period of performance?
Start: 2017-09-01. End: 2020-06-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is often based on unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies are still required to conduct price analyses to ensure the price is fair and reasonable, even without competition. This might involve reviewing historical pricing, cost breakdowns, or market research for similar items.
What are the specific risks associated with procuring specialized hardware and services on a sole-source basis for a critical platform like the Apache?
The primary risk is paying a premium due to the absence of competitive bidding, potentially leading to inefficient use of taxpayer funds. Other risks include vendor lock-in, limited innovation if the sole provider doesn't prioritize upgrades, and potential supply chain vulnerabilities if the provider faces financial or operational difficulties.
How does this investment in manned/unmanned teaming hardware contribute to the overall effectiveness and future readiness of the Apache AH-64E fleet?
Investing in manned/unmanned teaming hardware allows the Apache AH-64E to leverage the capabilities of unmanned aerial systems (UAS) for enhanced situational awareness, reconnaissance, and targeting. This integration improves survivability, expands the operational envelope, and enables more complex mission sets, ultimately increasing the platform's effectiveness and future combat readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
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: $69,348,326
Exercised Options: $69,348,326
Current Obligation: $69,348,326
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $24,560,711
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J17D0070
IDV Type: IDC
Timeline
Start Date: 2017-09-01
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 12:06:00
Last Modified: 2020-04-03
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