USSOCOM Awards $18.6M Contract for Miscellaneous Equipment Modification to L-3 Communications
Contract Overview
Contract Amount: $10,057,331 ($10.1M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2006-08-21
End Date: 2007-08-20
Contract Duration: 364 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200612!002366!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7370 ! !20060821!20070820!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000011071675!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 $10.1 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: 200612!002366!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7370 ! !20060821!20070820!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYE… Key points: 1. The contract, valued at $18.67 million, is for modification of equipment and miscellaneous services. 2. Awarded to L-3 Communications Integrated Systems L.P., indicating a specific vendor relationship. 3. The contract falls under 'Other Support Activities for Air Transportation' but the specific service is 'NOT DISCERNABLE'. 4. This award represents a significant expenditure for USSOCOM in the 2006-2007 fiscal year.
Value Assessment
Rating: fair
The contract value of $18.67 million for equipment modification and miscellaneous services appears substantial. Without specific details on the equipment or services, a direct pricing comparison is difficult, but the Cost Plus Award Fee structure suggests potential for cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific nature of the 'modification of eq/miscellaneous equipment' and the 'NOT DISCERNABLE' service description may limit the number of truly competitive bids.
Taxpayer Impact: The full and open competition aims to secure the best value for taxpayers, but the lack of clarity on the services provided makes it difficult to assess the ultimate taxpayer impact.
Public Impact
Taxpayers may be funding modifications to unspecified equipment, raising questions about necessity and scope. The award to a single entity, L-3 Communications, warrants scrutiny to ensure fair pricing and performance. Lack of detailed service description hinders public understanding of how funds are being utilized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on services provided.
- Potential for cost overruns with Cost Plus Award Fee contract type.
- Limited insight into the specific equipment being modified.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a known entity in the defense sector.
Sector Analysis
This contract falls under the broad category of support activities, likely related to aerospace or defense operations given the awarding agency (USSOCOM). Benchmarking is difficult without knowing the specific equipment or services, but defense contracting often involves complex and specialized modifications.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the U.S. Special Operations Command. Oversight would involve monitoring the performance of L-3 Communications and ensuring the modifications meet the required specifications and are completed within budget.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of specific service description.
- Vague equipment modification details.
- Cost Plus Award Fee contract type can lead to higher costs.
- No indication of small business subcontracting.
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 $10.1 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. 200612!002366!9700!H92222!USSOCOM HQ, DIR. OF PROCUREMENT !USZA2203D0006 !A!N! !Y!7370 ! !20060821!20070820!186729133!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!5749 BRIAR HILL RD !LEXINGTON !KY!40516!46027!067!21!LEXINGTON-FAYETTE !FAYETTE !KENTUCKY !+000011071675!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 $10.1 million.
What is the period of performance?
Start: 2006-08-21. End: 2007-08-20.
What specific equipment is being modified under this contract, and what is the justification for these modifications?
The provided data does not specify the type of equipment being modified. The description 'MODIFICATION OF EQ/MISCELLANEOUS EQUIPMENT' is too vague. A thorough review would require accessing the contract's statement of work or related documentation to understand the technical details and the necessity of these modifications for USSOCOM operations.
What are the key performance metrics and award fee criteria for L-3 Communications under this Cost Plus Award Fee contract?
The Cost Plus Award Fee (CPAF) structure implies that L-3 Communications' performance is evaluated against specific criteria, and they can earn an additional fee based on exceeding expectations. Without the contract's statement of work or performance work statement, these criteria remain unknown, making it difficult to assess the effectiveness of the incentive structure.
How does the $18.67 million expenditure align with typical spending for similar equipment modifications and support services within the defense sector?
Benchmarking this expenditure is challenging without knowing the exact nature of the modifications and services. However, for specialized defense equipment, significant modifications can indeed cost millions. A comparative analysis against similar contracts for aircraft, communication systems, or other specialized assets would be necessary to determine if this amount is reasonable.
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: 2007-08-20
Potential End Date: 2007-08-20 00:00:00
Last Modified: 2011-02-04
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