USSOCOM Awards $18.6M Contract for Miscellaneous Equipment Modification to L-3 Communications
Contract Overview
Contract Amount: $10,444,516 ($10.4M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2005-11-02
End Date: 2010-10-17
Contract Duration: 1,810 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200604!000181!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7104 ! !20051102!20111014!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000015509278!N!N!000000000000!K099!MODIFICATION OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!B!S! ! !D!20060930!B! ! !B! !A!U!R!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: 200604!000181!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7104 ! !20051102!20111014!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYE… Key points: 1. Contract awarded for modification of equipment and miscellaneous items. 2. L-3 Communications Integrated Systems L.P. is the contractor. 3. The contract falls under 'Other Support Activities for Air Transportation'. 4. Awarded under full and open competition. 5. Contract duration is 1810 days.
Value Assessment
Rating: fair
The total award amount is $18,672,913.30. Without specific cost breakdowns or benchmarks for similar modifications, it's difficult to definitively assess value. The 'Cost Plus Award Fee' (CPAF) structure suggests potential for performance-based incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure reasonable pricing, but the final taxpayer impact depends on the efficiency of the contractor and the effectiveness of the award fee structure.
Public Impact
Supports U.S. Special Operations Command (USSOCOM) operations. Involves modification and maintenance of specialized equipment. Contract duration of nearly 5 years suggests ongoing support needs. Potential impact on readiness and operational capabilities of SOCOM assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for 'miscellaneous equipment modification'.
- Contract type (CPAF) can lead to higher costs if not managed effectively.
- Specific nature of 'miscellaneous equipment' is not detailed, hindering precise assessment.
Positive Signals
- Awarded under full and open competition.
- Contractor has a significant contract value, indicating established capability.
- Long contract duration suggests a stable and reliable support provider.
Sector Analysis
This contract falls under the broad category of defense support services, specifically related to equipment modification and maintenance. Spending in this area is crucial for maintaining the operational readiness of specialized military units like USSOCOM.
Small Business Impact
The contract was awarded to L-3 Communications Integrated Systems L.P., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The contract is managed by the U.S. Special Operations Command (USSOCOM), a key component of the Department of Defense. Oversight would involve monitoring contractor performance against award fee criteria and ensuring compliance with contract terms.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Contract type (CPAF) can lead to cost overruns if not managed strictly.
- Lack of specificity regarding 'miscellaneous equipment' hinders detailed value assessment.
- Potential for scope creep in 'modification of equipment' tasks.
- Reliance on a single large contractor for specialized modifications.
Tags
other-support-activities-for-air-transpo, department-of-defense, ky, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. 200604!000181!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7104 ! !20051102!20111014!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000015509278!N!N!000000000000!K099!MODIFICATION OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !5!B!S! ! !D!200
Who is the contractor on this award?
The obligated recipient is L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $10.4 million.
What is the period of performance?
Start: 2005-11-02. End: 2010-10-17.
What specific types of equipment are being modified, and what is the expected improvement in performance or lifespan?
The data provided does not specify the exact nature of the 'miscellaneous equipment' undergoing modification. Understanding the specific assets and the intended outcomes of the modifications is crucial for assessing the true value and effectiveness of this contract. Without this detail, it's difficult to determine if the $18.6 million investment directly translates to enhanced operational capabilities for USSOCOM.
How does the 'Cost Plus Award Fee' structure incentivize efficiency and cost control for L-3 Communications?
A Cost Plus Award Fee (CPAF) contract allows the contractor to recover allowable costs plus a fee that is composed of a base fee plus an award amount. The award amount is determined by the government's evaluation of the contractor's performance against pre-defined criteria. Effective oversight and clearly defined award criteria are essential to ensure this structure drives efficiency and cost savings, rather than simply increasing overall expenditure.
What is the strategic importance of 'Other Support Activities for Air Transportation' for USSOCOM's mission?
While the contract is categorized under 'Other Support Activities for Air Transportation', its primary function is the modification of equipment for USSOCOM. This suggests that the equipment, though potentially related to air transport, is critical for the unique operational requirements of special operations forces. The specific nature of these modifications would dictate their direct impact on mission effectiveness and readiness.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 5749 BRIAR HILL RD, LEXINGTON, KY, 06
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2005-11-02
Current End Date: 2010-10-17
Potential End Date: 2010-10-17 00:00:00
Last Modified: 2011-06-27
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