DoD's $45.6M AAV UGWS contract awarded to L3Harris for gunner's periscopes
Contract Overview
Contract Amount: $45,586,095 ($45.6M)
Contractor: L3harris Cincinnati Electronics Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-09
End Date: 2010-10-03
Contract Duration: 1,151 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FFP - ASSAULT AMPHIBIOUS VEHICLE (AAV) UPGUNNED WEAPON STATION (UGWS) DAY/THERMAL GUNNER'S PERISCOPE
Place of Performance
Location: MASON, WARREN County, OHIO, 45040
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $45.6 million to L3HARRIS CINCINNATI ELECTRONICS CORPORATION for work described as: FFP - ASSAULT AMPHIBIOUS VEHICLE (AAV) UPGUNNED WEAPON STATION (UGWS) DAY/THERMAL GUNNER'S PERISCOPE Key points: 1. Contract awarded for specialized weapon stations on amphibious assault vehicles. 2. Focus on day/thermal gunner's periscopes for enhanced battlefield visibility. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. L3Harris Cincinnati Electronics Corporation is the sole awardee. 5. Contract duration of 1151 days indicates a significant, multi-year effort. 6. Awarded under full and open competition, suggesting broad market participation.
Value Assessment
Rating: fair
The contract's value of $45.6 million for specialized periscopes appears reasonable given the niche nature of military hardware. Benchmarking against similar advanced optics or weapon station components is challenging without more specific market data. The firm fixed-price structure implies that the contractor assumed the cost risk, which can be a positive indicator for value if the scope was well-defined. However, the lack of detailed cost breakdowns or comparisons makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bids suggests a competitive environment, though the specific number of bidders can sometimes be misleading if only a few possess the highly specialized capabilities required. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for specialized military equipment.
Public Impact
The primary beneficiaries are the U.S. Navy's amphibious assault vehicle units, enhancing their combat effectiveness. The contract delivers critical day/thermal gunner's periscopes, improving situational awareness and targeting capabilities. Geographic impact is primarily within military operational theaters where AAVs are deployed. Workforce implications include specialized manufacturing and engineering roles at L3Harris and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite FFP contract.
- Dependence on a single contractor for critical, specialized components.
- Risk of obsolescence if technology rapidly advances beyond the periscope's capabilities.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under full and open competition, suggesting competitive pricing.
- L3Harris is an established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on armored vehicle components and advanced optics. The market for such specialized military hardware is typically characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is driven by defense modernization efforts and the need for advanced capabilities in combat vehicles. Comparable spending benchmarks would likely involve other advanced targeting systems or vehicle upgrade programs within the DoD.
Small Business Impact
The data does not indicate any specific small business set-asides for this contract. As a sole awardee to L3Harris, a large defense contractor, the primary subcontracting opportunities would likely flow down through L3Harris's supply chain. It is possible that small businesses could be involved as suppliers of components or services, but this contract does not appear to be directly structured to benefit small businesses through set-asides.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract structure, requiring delivery of specified goods. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Assault Amphibious Vehicle (AAV) Program
- Defense Advanced Targeting Systems
- Military Vehicle Electronics
- Naval Surface Warfare Center Programs
Risk Flags
- Potential for cost growth if scope is not tightly managed.
- Risk of technological obsolescence in advanced optics.
- Dependence on a single supplier for critical components.
Tags
defense, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, armored-vehicle-manufacturing, optics, weapon-systems, l3harris, ohio, medium-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.6 million to L3HARRIS CINCINNATI ELECTRONICS CORPORATION. FFP - ASSAULT AMPHIBIOUS VEHICLE (AAV) UPGUNNED WEAPON STATION (UGWS) DAY/THERMAL GUNNER'S PERISCOPE
Who is the contractor on this award?
The obligated recipient is L3HARRIS CINCINNATI ELECTRONICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $45.6 million.
What is the period of performance?
Start: 2007-08-09. End: 2010-10-03.
What is L3Harris Cincinnati Electronics Corporation's track record with similar defense contracts, particularly involving optics and weapon systems?
L3Harris Technologies, the parent company, has a substantial track record in defense electronics, including electro-optical systems, communication, and avionics. L3Harris Cincinnati Electronics Corporation specifically has experience in developing and manufacturing advanced sensor systems and integrated electronic systems for military platforms. Their portfolio often includes components for targeting, navigation, and surveillance. While specific details on past AAV-related contracts for this exact entity require deeper investigation into historical procurement data, the company's overall profile suggests a strong capability in producing the types of complex electronic and optical systems required for the UGWS program. Past performance evaluations from the DoD would provide a more granular view of their reliability and quality on similar projects.
How does the $45.6 million contract value compare to the cost of similar advanced periscope systems for military vehicles?
Benchmarking the $45.6 million contract value for the AAV UGWS day/thermal gunner's periscope is challenging without access to detailed cost breakdowns and specific market intelligence on comparable systems. The value represents the total contract amount over its duration, not a per-unit cost. Factors influencing this value include the complexity of the day and thermal imaging capabilities, integration requirements with the AAV platform, durability standards for harsh environments, and the specific performance specifications mandated by the Department of the Navy. Advanced military optics, especially those with integrated thermal imaging and ruggedization, are inherently expensive. If this contract covered a significant quantity of units, the per-unit cost might be within a reasonable range for high-tech military hardware. However, without comparative data on similar procurements or detailed cost analysis, a definitive value-for-money assessment remains difficult.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks for this contract include technological obsolescence, potential performance deficiencies, and schedule delays. Given the rapid pace of technological advancement in optics and thermal imaging, the periscopes could become outdated relatively quickly. Performance deficiencies might arise if the systems do not meet the stringent operational requirements in combat environments. Schedule delays are always a risk in complex defense manufacturing. Mitigation strategies likely involve robust testing and validation protocols throughout the development and production phases, clear performance specifications in the contract, and potentially performance incentives or penalties. The firm fixed-price nature of the contract also incentivizes the contractor, L3Harris, to manage costs and schedules effectively to avoid financial losses. The DoD's program management would also provide oversight to identify and address risks proactively.
What is the historical spending pattern for AAV upgrades or similar weapon station components within the Department of Defense?
Historical spending on Assault Amphibious Vehicle (AAV) upgrades and related weapon station components within the Department of Defense (DoD) has been significant, reflecting the ongoing need to maintain and modernize aging vehicle fleets. The AAV program itself has seen various upgrade initiatives over the years aimed at enhancing survivability, lethality, and operational effectiveness. Spending on weapon stations, including advanced optics like periscopes, targeting systems, and integrated electronics, represents a crucial subset of these upgrade efforts. While specific aggregate spending figures for 'AAV weapon station components' are not readily available in public databases, broader categories like 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' (NAICS 336992) show substantial government outlays. The DoD consistently invests billions annually in vehicle modernization, with specialized components like advanced periscopes forming a vital, albeit niche, part of that expenditure. This particular $45.6 million contract is one component of that larger, sustained investment.
How does the 'full and open competition' designation impact the potential for cost savings for the taxpayer on this contract?
The designation of 'full and open competition' is generally a positive indicator for taxpayer savings. It means that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit a bid. This broad solicitation process encourages a wider range of potential contractors to compete, fostering a more competitive environment. In theory, increased competition drives down prices as contractors vie for the contract by offering their best value proposals. For this specific contract, while only two bids were received, the fact that it was competed openly suggests that the Department of the Navy sought to leverage market forces to obtain the best possible price and technical solution. This contrasts with sole-source or limited competition scenarios where the government may have fewer options and potentially less leverage to negotiate favorable terms.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 7500 INNOVATION WAY, MASON, OH, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $45,586,095
Exercised Options: $45,586,095
Current Obligation: $45,586,095
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D6035
IDV Type: IDC
Timeline
Start Date: 2007-08-09
Current End Date: 2010-10-03
Potential End Date: 2010-10-03 00:00:00
Last Modified: 2010-09-08
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