L3 Technologies awarded $43.4M contract for wireless communications equipment, with 3 bidders

Contract Overview

Contract Amount: $43,429,878 ($43.4M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-24

End Date: 2012-08-11

Contract Duration: 718 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SYSTEM

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $43.4 million to L3 TECHNOLOGIES, INC. for work described as: SYSTEM Key points: 1. Contract value of $43.4 million represents a significant investment in defense communications infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 718 days indicates a medium-term project with ongoing service requirements. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The award to L3 Technologies, Inc. places them as a key supplier in this defense sector. 6. The North American Industry Classification System (NAICS) code 334220 points to a specialized manufacturing segment.

Value Assessment

Rating: good

The contract value of $43.4 million for wireless communications equipment appears reasonable given the specialized nature of defense technology. Benchmarking against similar contracts for broadcasting and wireless equipment manufacturing is challenging without more specific technical details. However, the presence of multiple bidders suggests that the pricing was likely competitive and aligned with market expectations for this type of specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy market for this type of defense communication equipment. The multiple bids likely contributed to price discovery and ensured the government received competitive offers.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging innovation from contractors seeking to win the award.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical wireless communications equipment. This contract supports the manufacturing and delivery of specialized broadcasting and wireless communications hardware. The contract is geographically focused on New Jersey, where the contractor is located. The contract likely supports a workforce involved in the design, manufacturing, and testing of advanced communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during manufacturing.
Dependence on a single contractor for a critical component of defense communications.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Contractor L3 Technologies, Inc. is a known entity in the defense sector, suggesting established capabilities.

Sector Analysis

The wireless communications equipment manufacturing sector is a vital component of the broader defense industrial base. This contract falls under NAICS code 334220, which covers establishments primarily engaged in manufacturing radio and television broadcasting and wireless communications equipment. The market for such equipment is characterized by rapid technological advancement and stringent performance requirements, particularly for defense applications. Comparable spending benchmarks are difficult to establish without more granular data on specific equipment types, but defense spending in this area typically runs into billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like L3 Technologies, Inc. may limit direct opportunities for small businesses unless they are part of the prime's supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Defense Communications Systems
Wireless Technology Manufacturing
Broadcasting Equipment Procurement
Department of Defense Procurement

Risk Flags

Potential for obsolescence given rapid technological advancements in wireless communications.
Dependence on contractor's supply chain for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.4 million to L3 TECHNOLOGIES, INC.. SYSTEM

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 $43.4 million.

What is the period of performance?

Start: 2010-08-24. End: 2012-08-11.

What is the specific type of wireless communications equipment being procured under this contract?

The provided data indicates the contract is for 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' under NAICS code 334220. However, the specific type of equipment is not detailed. This could range from tactical radios and satellite communication systems to specialized broadcasting hardware for military operations. Further investigation into the contract's statement of work or technical specifications would be necessary to identify the precise nature of the equipment.

How does the awarded amount of $43.4 million compare to historical spending on similar wireless communications equipment by the Department of Defense?

Comparing the $43.4 million award to historical spending requires access to detailed historical procurement data for similar wireless communications equipment. Without specific technical parameters and contract types, a direct comparison is difficult. However, the Department of Defense consistently invests billions in communication technologies annually. This $43.4 million contract represents a specific procurement within that larger ecosystem, and its relative size would depend on the criticality and scale of the equipment needed for the intended application. Analyzing trends in defense spending on communication hardware over the past decade would provide broader context.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for firm fixed-price contracts involving equipment manufacturing, success is measured by adherence to delivery schedules, meeting technical specifications and quality standards, and staying within the contracted price. The Department of the Army would likely have established acceptance criteria for the delivered equipment, focusing on functionality, reliability, and compliance with military standards. Post-delivery performance and warranty clauses would also contribute to the assessment of contract success.

What is L3 Technologies, Inc.'s track record with the Department of Defense for similar types of contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant track record of contracting with the Department of Defense across various technology and defense sectors. While specific details for this $43.4 million contract are limited, the company is known for providing a wide range of advanced communication, electronic warfare, and sensor systems. Their history with the DoD suggests established capabilities and experience in delivering complex defense systems. A deeper dive into their contract history would reveal the volume and types of similar awards they have received, as well as their performance ratings on those contracts.

What are the potential risks associated with the firm fixed-price contract type for this procurement?

The primary risk associated with a firm fixed-price (FFP) contract for the government is that the contractor may cut corners on quality or performance to maximize profit if unforeseen cost increases occur. For the contractor, the risk lies in absorbing any cost overruns that exceed the fixed price, which can occur due to unexpected material price hikes, labor issues, or technical difficulties. In this case, the government benefits from cost certainty, but must ensure robust technical specifications and oversight are in place to mitigate quality risks. The relatively short duration (718 days) might mitigate some long-term risk exposure.

How does the competition level (3 bidders) impact the value and innovation for this specific contract?

A competition level of three bidders for this contract suggests a moderately competitive environment. This number is generally sufficient to encourage competitive pricing and prevent a monopoly situation. It implies that multiple companies possessed the capability and interest to bid, likely leading to a more favorable price for the government compared to a sole-source award. However, a higher number of bidders could potentially drive prices even lower. The impact on innovation is less direct; while competition incentivizes meeting requirements, breakthrough innovation is more likely in less price-sensitive or R&D-focused contract types.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911QY10R0031

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 1 FEDERAL ST, CAMDEN, NJ, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,429,878

Exercised Options: $43,429,878

Current Obligation: $43,429,878

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY10D0057

IDV Type: IDC

Timeline