DoD's $13.9M contract for UH-60 AAR-57 A-KITS awarded to L-3 Communications Integrated Systems

Contract Overview

Contract Amount: $13,921,701 ($13.9M)

Contractor: L-3 Communications Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2007-01-05

End Date: 2008-11-11

Contract Duration: 676 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: CC3339 UH-60 AAR-57 A-KITS

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CC3339 UH-60 AAR-57 A-KITS Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which can incentivize contractor performance but also carries inherent cost risks. 3. The contract duration was 676 days, indicating a medium-term project. 4. The award was made by the U.S. Special Operations Command, highlighting its relevance to specialized military operations. 5. The contract's value of $13.9 million is moderate for defense procurement, but specific performance metrics are needed for a full value assessment. 6. The contract was awarded in 2007, providing historical context for current spending patterns.

Value Assessment

Rating: fair

The contract value of $13.9 million for aircraft kits is difficult to benchmark without detailed specifications and performance data. The Cost Plus Award Fee (CPAF) structure means the final cost could exceed the initial estimate, depending on performance. Comparing this to similar procurements for specialized aircraft components would be necessary to determine if the pricing was competitive and offered good value for money. The limited information available prevents a definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially lower costs for the government. The number of bidders is not specified, but the designation implies multiple proposals were likely considered.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging efficiency from contractors seeking to win the award.

Public Impact

This contract likely supported U.S. Special Operations Command's aviation assets, specifically the UH-60 Black Hawk helicopters. The delivered kits (AAR-57 A-KITS) are specialized components that enhance the survivability or operational capabilities of the aircraft. The geographic impact is primarily within military operational theaters where these assets are deployed. The contract supported jobs within L-3 Communications Integrated Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to cost overruns if not managed tightly, as the government pays costs plus an award fee based on performance.
The specific nature of 'A-KITS' for the UH-60 platform suggests a specialized requirement, potentially limiting the pool of qualified bidders in future procurements.
The contract was awarded in 2007, and its performance and cost-effectiveness may not reflect current market conditions or technological advancements.

Positive Signals

Awarded under full and open competition, indicating a competitive environment that should have driven value.
The U.S. Special Operations Command's involvement suggests the procurement was critical for high-priority missions.
The contract was successfully completed within its defined period, implying operational delivery.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft components and support for military aviation. The market for specialized aircraft kits is driven by defense spending and the need for advanced capabilities. Comparable spending benchmarks would involve analyzing other contracts for similar modifications or upgrade kits for platforms like the UH-60, considering factors like technology insertion and performance enhancements.

Small Business Impact

There is no indication that this contract involved small business set-asides. The prime contractor, L-3 Communications Integrated Systems, is a large defense contractor. Subcontracting opportunities for small businesses may have existed, but this information is not detailed in the provided data. The impact on the small business ecosystem is likely indirect, through the supply chain of the prime contractor.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Special Operations Command contracting and program management offices. As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls would be key areas of oversight. Transparency is generally limited for specific defense procurements, but contract awards are typically reported in federal databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

UH-60 Black Hawk Helicopter Procurement
Special Operations Aviation Support
Aircraft Modification and Upgrade Programs
Defense Logistics Agency (DLA) Aviation Support

Risk Flags

Cost Plus Award Fee contract type carries inherent cost risk.
Contract awarded in 2007; performance and value may not reflect current market conditions.
Specific details on competition level (number of bidders) and final performance outcomes are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CC3339 UH-60 AAR-57 A-KITS

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 $13.9 million.

What is the period of performance?

Start: 2007-01-05. End: 2008-11-11.

What specific capabilities did the UH-60 AAR-57 A-KITS provide, and how did they enhance the aircraft's performance or survivability?

The AAR-57 Common Missile Warning System (CMWS) is an integrated suite designed to detect and identify incoming infrared-guided missiles, providing alerts to the aircrew and often initiating countermeasures. The 'A-KITS' likely refer to specific installation or integration kits required to equip the UH-60 Black Hawk helicopters with this advanced threat detection system. Enhancements would include improved situational awareness for the crew, increased survivability against missile threats, and potentially reduced risk of aircraft loss in combat zones. The specific version, AAR-57, indicates a particular generation of this technology, which has undergone several upgrades over time.

How did the Cost Plus Award Fee (CPAF) structure influence the final cost and performance of this contract compared to other contract types?

A Cost Plus Award Fee (CPAF) contract involves the government reimbursing the contractor for allowable costs plus a fee that has a base amount plus an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to meet or exceed performance targets to earn the maximum award fee. However, it also means the final cost is not fixed and can vary significantly based on performance outcomes. For taxpayers, this can be a double-edged sword: potentially leading to better mission accomplishment but also carrying a risk of higher overall costs if performance targets are aggressively set or if cost overruns occur within the 'cost' portion.

What was the historical spending trend for UH-60 AAR-57 A-KITS or similar systems prior to and following this 2007 contract award?

Analyzing historical spending trends for specific aircraft kits like the UH-60 AAR-57 A-KITS requires access to detailed federal procurement databases beyond the provided summary. Generally, spending on advanced survivability systems for platforms like the UH-60 tends to increase during periods of active military engagement, such as the conflicts in Iraq and Afghanistan, where such threats were prevalent. Following periods of intense conflict, spending might decrease or shift towards upgrades and sustainment rather than new system procurements. Without specific data points for this particular kit or its predecessors/successors, it's difficult to establish a precise trend, but the general pattern suggests demand driven by operational necessity and threat evolution.

What is the track record of L-3 Communications Integrated Systems (now L3Harris Technologies) in delivering complex defense systems, particularly aviation-related ones?

L-3 Communications Integrated Systems, now part of L3Harris Technologies, has a long and extensive track record in the defense industry, specializing in a wide array of complex systems, including aviation support, electronic warfare, and communication systems. They have historically been a significant supplier to various branches of the U.S. military, including special operations. Their experience encompasses integration, modification, and sustainment of aircraft platforms. While specific contract performance can vary, the company's sustained presence and numerous awards indicate a general capability to deliver sophisticated defense solutions. Assessing their performance on any single contract requires a deep dive into that specific award's metrics and outcomes.

How does the 'Other Support Activities for Air Transportation' (NAICS 488190) classification relate to the specific nature of this contract for aircraft kits?

The NAICS code 488190, 'Other Support Activities for Air Transportation,' is a broad classification that encompasses a variety of services related to air transport, including airport operations, air traffic control, and maintenance, repair, and overhaul (MRO) services for aircraft. While this contract is for specific 'A-KITS' (likely modification or upgrade components), it falls under this umbrella because the kits are intended to be installed on aircraft, thereby supporting their operational readiness and airworthiness. The classification signifies that the service provided is ancillary to the direct operation of aircraft but crucial for their sustained functionality and enhancement, fitting within the broader ecosystem of air transportation support activities.

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

Financial Breakdown

Contract Ceiling: $13,921,701

Exercised Options: $13,921,701

Current Obligation: $13,921,701

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2203D0006

IDV Type: IDC

Timeline