L3 Technologies Awarded $20.7M Sole Source IDIQ for SOCOM RPA Sustainment

Contract Overview

Contract Amount: $20,717,151 ($20.7M)

Contractor: L3 Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-21

End Date: 2026-06-01

Contract Duration: 2,079 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: L3 SOLE SOURCE IDIQ TO2 SOCOM RPA PRT AND SRVT SUSTAINMENT REQUIREMENTS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $20.7 million to L3 TECHNOLOGIES, INC. for work described as: L3 SOLE SOURCE IDIQ TO2 SOCOM RPA PRT AND SRVT SUSTAINMENT REQUIREMENTS Key points: 1. Sole-source award to L3 Technologies for critical SOCOM RPA sustainment. 2. Contract type is Time and Materials, potentially leading to cost overruns. 3. No small business participation noted. 4. High-risk contract due to sole-source nature and T&M pricing.

Value Assessment

Rating: questionable

The $20.7 million award is a sole-source IDIQ, making direct price comparisons difficult. The Time and Materials pricing structure raises concerns about cost control and potential for exceeding the ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to L3 Technologies. The lack of competition limits price discovery and potentially results in a higher cost to the government.

Taxpayer Impact: The sole-source nature and Time and Materials pricing structure may lead to increased taxpayer costs due to limited price competition and potential for cost overruns.

Public Impact

Ensures sustainment for critical SOCOM RPA systems, vital for national security operations. Lack of competition raises concerns about fair pricing and efficient use of taxpayer funds. Potential for cost growth due to Time and Materials contract type. No small business participation could limit economic opportunities for smaller firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole Source
Time and Materials Pricing
No Small Business Participation

Positive Signals

Critical System Sustainment
Long-term contract provides stability

Sector Analysis

This contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector, specifically supporting advanced defense technology. Spending benchmarks for similar sole-source sustainment contracts are difficult to establish due to the unique nature of the equipment and services.

Small Business Impact

This contract explicitly states no small business participation. This is a missed opportunity to leverage the capabilities of small businesses in the defense technology supply chain and could impact economic diversity.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent cost creep. Robust monitoring of the Time and Materials expenditures is crucial for accountability.

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
Time and Materials Pricing
Lack of Competition
No Small Business Participation
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.7 million to L3 TECHNOLOGIES, INC.. L3 SOLE SOURCE IDIQ TO2 SOCOM RPA PRT AND SRVT SUSTAINMENT REQUIREMENTS

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 $20.7 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-06-01.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document extensive market research to confirm no other sources can meet the need. Alternative competitive strategies should always be explored, and a sole-source award should be a last resort, requiring strong justification to ensure fair and reasonable pricing.

How will the government mitigate the risks associated with Time and Materials pricing to control costs?

Mitigation strategies for Time and Materials (T&M) contracts include establishing firm-fixed-price CLINs for specific tasks where feasible, setting clear labor categories and rates, implementing strict oversight of hours worked, and requiring detailed progress reports. Government contracting officers must actively monitor expenditures against the contract ceiling and conduct regular reviews to ensure efficiency and prevent cost overruns.

What is the long-term strategy for ensuring competitive sourcing for future sustainment requirements of these RPA systems?

The long-term strategy should involve proactive market research to identify potential sources for future sustainment, potentially through breaking down requirements into smaller, more competitive packages. Developing a robust sustainment plan that encourages competition, perhaps through phased transitions or by fostering new capabilities in the market, is essential to avoid perpetual sole-source awards and ensure cost-effectiveness.

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

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: $25,658,285

Exercised Options: $24,738,482

Current Obligation: $20,717,151

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $3,816,415

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