DoD's $18.3M consequence management support contract awarded to L-3 Communications Integrated Systems L.P. in 2007

Contract Overview

Contract Amount: $18,303,826 ($18.3M)

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

Awarding Agency: Department of Defense

Start Date: 2007-02-10

End Date: 2008-02-09

Contract Duration: 364 days

Daily Burn Rate: $50.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: PROJECT 3373 - CONSEQUENCE MANAGEMENT SUPPORT FY07-08

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: PROJECT 3373 - CONSEQUENCE MANAGEMENT SUPPORT FY07-08 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 3. The contract duration was one year, indicating a short-term need for these services. 4. The contract was awarded by U.S. Special Operations Command, highlighting its specialized nature. 5. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 6. The contract was awarded in FY07-08, providing historical context for spending in this area.

Value Assessment

Rating: fair

The total award amount was $18.3 million for a one-year period. Without specific performance metrics or deliverables, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, but the ultimate cost is tied to actual expenses plus an award fee. Benchmarking against similar consequence management support contracts is challenging due to the specialized nature of the services and the specific agency involved (US Special Operations Command).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment. The open competition suggests that the government sought the best possible solution and price from the market. This approach is intended to ensure fair pricing and access to a wide range of capabilities.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to better value for public funds. It ensures that the government is not locked into a single provider, which could lead to inflated costs.

Public Impact

The primary beneficiaries of this contract are likely U.S. Special Operations Command personnel requiring specialized support for consequence management. The services delivered likely involve planning, training, or response capabilities related to unforeseen events or incidents. The geographic impact is not specified but is likely tied to the operational areas of USSOCOM. Workforce implications could include specialized personnel within L-3 Communications and potentially support roles within the government agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge effectiveness.
Cost Plus Award Fee contracts can sometimes lead to higher costs if not tightly managed.
Limited information on the specific nature of 'consequence management support' hinders detailed analysis.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The CPAF structure includes incentives for contractor performance.
Contractor L-3 Communications is a known entity in defense contracting.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically related to support services. The market for specialized support activities for air transportation and consequence management is often niche, driven by government requirements. Comparable spending benchmarks would typically be found within defense budgets for similar operational support functions, often characterized by high levels of technical expertise and security requirements.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor, L-3 Communications, likely handled the majority of the work or subcontracted to other large businesses. The impact on the small business ecosystem is likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures are typically embedded within the Cost Plus Award Fee structure, linking payment to performance. Transparency is generally limited for contracts supporting special operations, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Support Contracts
Air Transportation Support Services
Contingency and Crisis Response Services
Defense Logistics and Support

Risk Flags

Contract Type Risk (CPAF)
Performance Measurement Difficulty
Limited Scope Definition in Public Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. PROJECT 3373 - CONSEQUENCE MANAGEMENT SUPPORT FY07-08

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 $18.3 million.

What is the period of performance?

Start: 2007-02-10. End: 2008-02-09.

What specific services did L-3 Communications Integrated Systems L.P. provide under this consequence management support contract?

The provided data indicates the contract falls under NAICS code 488190, 'Other Support Activities for Air Transportation,' and is for 'Consequence Management Support.' While specific details are not available in the provided snippet, this suggests services related to managing the aftermath of incidents or emergencies, potentially involving air assets. This could encompass planning, logistical support, technical assistance, training, or response coordination. Given the involvement of U.S. Special Operations Command, the nature of these services might be highly specialized, potentially including support for unique operational environments or threat scenarios. The Cost Plus Award Fee (CPAF) structure implies that the scope of work was defined, and the contractor was incentivized to perform effectively and efficiently within that scope to earn an award fee on top of cost reimbursement.

How does the $18.3 million award compare to similar consequence management support contracts awarded by the Department of Defense?

Direct comparison of this $18.3 million contract to similar 'consequence management support' contracts is challenging without more specific details on the services rendered and the contracting agency's specific mission requirements. Consequence management can encompass a wide range of activities, from natural disaster response to dealing with the aftermath of attacks. Contracts for such services can vary significantly in scope, duration, and complexity. However, $18.3 million for a one-year contract awarded in FY07-08 by a specialized command like USSOCOM is within a plausible range for high-demand, specialized support. Broader contracts for logistical or operational support within the DoD can range from millions to billions, but this specific niche likely commands a premium due to required expertise and security clearances.

What were the key performance indicators (KPIs) or deliverables expected from L-3 Communications Integrated Systems L.P. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or deliverables for this contract. However, as a Cost Plus Award Fee (CPAF) contract, it is designed to incentivize performance against defined objectives. Typically, for consequence management support, KPIs might include response times, successful completion of training exercises, effectiveness of logistical support provided, accuracy of planning documents, or adherence to safety and security protocols. The 'Award Fee' component suggests that a portion of the payment was contingent upon meeting or exceeding certain performance standards set by the government. Without access to the contract's Performance Work Statement (PWS), the exact KPIs remain unknown.

What is the track record of L-3 Communications Integrated Systems L.P. in providing similar support services to the Department of Defense?

L-3 Communications Integrated Systems L.P. (now part of L3Harris Technologies) has a long history of providing a wide array of services and products to the Department of Defense and other government agencies. Their expertise often includes command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, aviation support, and specialized training. While the specific 'consequence management support' under this particular contract might be niche, the company's general background suggests a capability to handle complex technical and operational support requirements. Historical contract data would reveal the extent and success of their involvement in similar projects, including any performance issues or accolades received.

How did the 'full and open competition' process influence the pricing and selection of L-3 Communications Integrated Systems L.P. for this contract?

The 'full and open competition' designation means that the contract was solicited broadly, allowing any qualified company to submit a proposal. This process is intended to foster a competitive environment where multiple companies vie for the contract. The pricing is influenced by the bids submitted by these competing firms. The government evaluates proposals based on a combination of factors, which may include technical approach, past performance, and price. By opening the competition, the government aimed to secure the best value, likely balancing cost with the technical capabilities and proposed solutions offered by bidders. L-3 Communications Integrated Systems L.P. was selected presumably because their proposal offered the best overall value according to the evaluation criteria established in the solicitation.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract for consequence management support?

Cost Plus Award Fee (CPAF) contracts carry inherent risks. For the government, there's a risk that costs could escalate beyond initial estimates, as the contractor is reimbursed for allowable costs. While the award fee is intended to incentivize performance, defining objective and measurable criteria for this fee can be challenging, potentially leading to disputes or subjective assessments. For the contractor, the risk lies in not achieving the performance targets required to earn the full award fee, thus impacting their overall profit margin. In the context of consequence management, where unforeseen events and dynamic situations are common, accurately forecasting costs and defining performance metrics upfront can be particularly difficult, increasing the risk of cost overruns or performance shortfalls if not managed meticulously.

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: $18,303,826

Exercised Options: $18,303,826

Current Obligation: $18,303,826

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2203D0006

IDV Type: IDC

Timeline