GSA Awards $39M Sole Source IDIQ for SOCOM Satellite Communications to L3 Technologies

Contract Overview

Contract Amount: $38,959,902 ($39.0M)

Contractor: L3 Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-21

End Date: 2026-08-28

Contract Duration: 2,167 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: L3 SOLE SOURCE IDIQ TO3 USSOCOM SATELLITE COMMUNICATIONS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $39.0 million to L3 TECHNOLOGIES, INC. for work described as: L3 SOLE SOURCE IDIQ TO3 USSOCOM SATELLITE COMMUNICATIONS Key points: 1. Significant contract value of $39 million for satellite communications. 2. Sole source award to L3 Technologies raises questions about competition. 3. Potential risk associated with a single vendor for critical communications. 4. Contract falls within the IT and Defense sectors.

Value Assessment

Rating: questionable

The contract is a sole source award, making direct pricing comparisons difficult. Without competitive bidding, it's challenging to ascertain if the $39 million represents the best value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole source, meaning it was not competed. This limits price discovery and may result in higher costs compared to a competitive procurement.

Taxpayer Impact: The lack of competition for this $39 million contract could lead to taxpayers paying a premium for satellite communication services.

Public Impact

Ensures critical satellite communication capabilities for USSOCOM. Potential for increased costs due to sole-source nature. Reliance on a single vendor for essential services. Impact on small businesses is not specified but likely minimal due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole source award limits competition and price discovery.
Contract duration extends over several years, increasing long-term cost exposure.
Time and Materials pricing structure can lead to cost overruns if not closely managed.

Positive Signals

Provides essential satellite communication capabilities.
Awarded to a known entity, potentially ensuring continuity of service.

Sector Analysis

This contract for satellite communications equipment falls under the Information Technology sector, specifically within wireless communications manufacturing. The value of $39 million is substantial for a sole-source award in this category.

Small Business Impact

The sole-source nature of this award suggests that small businesses were likely not involved in the primary contract. Further analysis would be needed to determine if any subcontracting opportunities exist.

Oversight & Accountability

The sole-source justification for this contract should be thoroughly reviewed by oversight bodies to ensure it was appropriate and that taxpayer funds are being used efficiently.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole source award
Lack of competition
Time and Materials pricing
Long contract duration
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.0 million to L3 TECHNOLOGIES, INC.. L3 SOLE SOURCE IDIQ TO3 USSOCOM SATELLITE COMMUNICATIONS

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-08-28.

What was the specific justification for awarding this contract sole source instead of competing it?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without the specific justification document, it's impossible to determine the exact reasoning, but it would need to demonstrate why competition was not feasible or advantageous.

What are the risks associated with relying on a single vendor for critical satellite communications?

Relying on a single vendor for critical satellite communications presents several risks. These include potential supply chain disruptions, lack of vendor responsiveness due to no competitive pressure, and vulnerability if the vendor experiences financial difficulties or goes out of business. It also limits the government's ability to leverage technological advancements or cost savings that might be available from other providers.

How will the Time and Materials pricing structure be managed to ensure cost-effectiveness?

Managing a Time and Materials (T&M) contract requires robust oversight and stringent controls to ensure cost-effectiveness. This involves detailed tracking of labor hours and material costs, regular audits, and clear performance metrics. The government contracting officer must actively monitor expenditures, negotiate labor rates, and ensure that the work performed is necessary and efficient to prevent cost overruns.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $42,662,804

Exercised Options: $41,796,593

Current Obligation: $38,959,902

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $1,681,464

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA20D0014

IDV Type: IDC

Timeline