DoD Awards $186.7M Contract for Miscellaneous Equipment Modification to L-3 Communications
Contract Overview
Contract Amount: $13,177,972 ($13.2M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2006-08-21
End Date: 2007-09-30
Contract Duration: 405 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200611!001845!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7368 ! !20060821!20070601!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000004850000!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 $13.2 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: 200611!001845!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7368 ! !20060821!20070601!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 the 'Other Support Activities for Air Transportation' category. 4. Awarded by U.S. Special Operations Command (USSOCOM).
Value Assessment
Rating: fair
The contract value is $186.7 million over a period of approximately 13 months. Without specific details on the equipment or services provided, it's difficult to benchmark against similar contracts. The 'Cost Plus Award Fee' pricing 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 full and open competition suggests efforts to secure competitive pricing, but the 'Cost Plus Award Fee' structure requires careful monitoring to ensure taxpayer funds are used efficiently.
Public Impact
Supports U.S. Special Operations Command's operational needs. Contract involves modification and miscellaneous equipment, suggesting specialized requirements. Potential impact on readiness and operational capabilities of special operations forces. Economic impact on the contractor and its supply chain in Kentucky.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the 'miscellaneous equipment' and 'modification' services.
- The 'Cost Plus Award Fee' contract type can lead to cost overruns if not managed tightly.
- Short contract duration (approx. 13 months) may indicate a specific, short-term need or a bridge contract.
Positive Signals
- Awarded under full and open competition.
- Contractor has a significant presence in Kentucky.
- Supports a critical national security mission (USSOCOM).
Sector Analysis
This contract falls under the 'Other Support Activities for Air Transportation' sector, which can include a wide range of services related to aviation support. Spending in this area is often driven by the operational tempo and specific needs of military branches, particularly those involved in global logistics and special operations.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not specified.
Oversight & Accountability
The award was made by the Department of Defense, specifically U.S. Special Operations Command. Oversight would typically involve contract management teams within USSOCOM to ensure performance, cost control, and 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
- Lack of detailed scope of work.
- Potential for cost creep with CPAF contract type.
- Short contract duration may indicate a temporary solution.
- No small business participation indicated.
- Contract awarded to a single entity, despite full and open competition.
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 $13.2 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. 200611!001845!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7368 ! !20060821!20070601!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000004850000!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 $13.2 million.
What is the period of performance?
Start: 2006-08-21. End: 2007-09-30.
What specific types of equipment are being modified, and what is the nature of these modifications?
The provided data lacks specifics on the equipment and modifications. Understanding these details is crucial for assessing the necessity and value of the contract. Without this information, it's difficult to determine if the $186.7 million expenditure is justified or if it addresses critical operational requirements for USSOCOM.
How effectively does the 'Cost Plus Award Fee' structure incentivize L-3 Communications to control costs while meeting performance objectives?
The Cost Plus Award Fee (CPAF) structure aims to incentivize performance by offering award fees based on meeting or exceeding certain criteria, while also covering costs. However, effective oversight is critical to prevent cost overruns. USSOCOM must have robust mechanisms to define award criteria clearly and monitor expenditures to ensure value for money.
What is the long-term strategic value of this contract for USSOCOM's capabilities?
The short duration (approx. 13 months) suggests this contract may address an immediate or interim need rather than a long-term strategic capability. Its value lies in maintaining or enhancing existing equipment for current operations. Further analysis would be needed to understand if this modification is part of a larger modernization effort or a stop-gap measure.
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: 2006-08-21
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2011-05-06
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