L3 Technologies awarded $19.8M sole-source IDIQ for wireless communications equipment, with 5 years of performance

Contract Overview

Contract Amount: $19,822,221 ($19.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-28

End Date: 2025-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT COMPETED

Pricing Type: LABOR HOURS

Sector: Other

Official Description: L3 SOLE SOURCE IDIQ TO4 AFSOC AWARD

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $19.8 million to L3 TECHNOLOGIES, INC. for work described as: L3 SOLE SOURCE IDIQ TO4 AFSOC AWARD Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant contract value suggests critical need for wireless communications equipment. 3. Performance period of five years indicates a long-term requirement. 4. Awarded by GSA's Federal Acquisition Service, indicating a potential for broader government use. 5. Focus on broadcasting and wireless equipment manufacturing points to a specialized technology area.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source award is challenging without competitive bids. The $19.8 million over five years, averaging approximately $3.96 million annually, appears substantial for wireless communications equipment. However, without comparable contract data or market analysis for similar sole-source procurements, it's difficult to definitively assess if this represents excellent value for money. The lack of competition inherently raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning L3 Technologies was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that the government did not benefit from the price discovery and innovation that usually arises from a competitive environment.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing offers, there is a reduced likelihood of securing the lowest possible price for the required wireless communications equipment.

Public Impact

The primary beneficiaries are likely military or government agencies requiring specialized wireless communications equipment for operations. The contract will deliver radio and television broadcasting and wireless communications equipment. The geographic impact is focused on Florida (ST/SN), suggesting a specific operational base or requirement. Workforce implications are tied to the manufacturing and potential support of this specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Potential for vendor lock-in given the long-term performance period.

Positive Signals

Award to a single, presumably capable, vendor can ensure timely delivery of critical equipment.
GSA's involvement suggests adherence to established procurement standards, even if sole-source.
The contract duration indicates a stable and predictable supply chain for essential technology.

Sector Analysis

The contract falls within the Information Technology and Communications sector, specifically focusing on Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. This is a specialized niche within the broader defense and government technology market. The market for such equipment is often characterized by high barriers to entry due to technological complexity and security requirements. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the equipment and its intended use, but significant government investments are common in this area for national security and operational needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award is unlikely to have a direct positive impact on the small business ecosystem. The focus is on a large prime contractor, potentially limiting opportunities for smaller firms to participate in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure compliance and accountability. However, the sole-source nature of the award means that oversight will focus more on contract administration, performance monitoring, and ensuring fair pricing within the negotiated terms, rather than on the initial competition phase. Transparency is limited due to the sole-source designation.

Related Government Programs

Defense Communications Systems
Wireless Network Infrastructure
Broadcasting Equipment Procurement
Government IT Services
Federal Communications Commission (FCC) Regulated Equipment

Risk Flags

Sole-source award may lead to higher costs.
Lack of competition limits price discovery.
Potential for vendor lock-in.
Limited transparency in procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.8 million to L3 TECHNOLOGIES, INC.. L3 SOLE SOURCE IDIQ TO4 AFSOC AWARD

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 $19.8 million.

What is the period of performance?

Start: 2020-09-28. End: 2025-09-27.

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

The contract data indicates the North American Industry Classification System (NAICS) code is 334220, which covers 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' This suggests the equipment could range from radio transmitters and receivers, television broadcasting equipment, cellular phones, and other wireless communication devices. However, the specific details of the equipment, such as technical specifications, intended use, and quantity, are not provided in the summary data. Further investigation into the contract's statement of work or detailed award documents would be necessary to ascertain the precise nature of the wireless communications equipment.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. Common justifications include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or when a specific brand-name item is required. Without access to the specific justification documentation filed by the General Services Administration (GSA) for this L3 Technologies contract, the precise reason for the sole-source award remains unknown. However, it is likely tied to specialized technology or a unique capability that L3 Technologies possesses, making them the only viable option for AFSOC's needs.

How does the $19.8 million contract value compare to similar wireless communications equipment procurements by the government?

Directly comparing the $19.8 million value of this sole-source IDIQ to similar procurements is challenging without more specific details about the equipment and its intended application. However, for specialized wireless communications equipment, particularly for defense or critical infrastructure, contract values in the tens of millions of dollars over several years are not uncommon. The fact that it's an IDIQ (Indefinite Delivery, Indefinite Quantity) means the $19.8 million represents a ceiling, and actual spending could be less. To provide a robust comparison, one would need to analyze other IDIQs or fixed-price contracts for similar equipment, considering factors like quantity, technical specifications, and the procuring agency's mission.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price. Additionally, sole-source contracts can reduce transparency in the procurement process and may lead to vendor lock-in, making it difficult to switch providers in the future. There's also a risk that the government's specific needs might not be as uniquely met as they would be in a competitive environment where vendors tailor solutions to win the contract. Ensuring fair and reasonable pricing through rigorous negotiation and market research becomes paramount.

What is L3 Technologies' track record with government contracts, particularly with the General Services Administration (GSA)?

L3 Technologies (now part of L3Harris Technologies) has a significant history of performing government contracts across various agencies, including the Department of Defense and GSA. They are known for providing a wide range of products and services, including advanced communications, electronic systems, and aerospace technologies. Their track record generally indicates substantial experience in delivering complex technological solutions to government clients. While specific performance metrics for this particular contract are not yet available due to its ongoing nature, L3Harris's overall profile suggests a capable contractor with extensive experience in the defense and technology sectors.

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: LABOR HOURS (Z)

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: $19,976,717

Exercised Options: $19,976,717

Current Obligation: $19,822,221

Actual Outlays: $-10,450

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $194,658

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