DoD's $30.9M contract for MH47G 2.1 PROD MODS awarded to L-3 Communications Integrated Systems L.P

Contract Overview

Contract Amount: $30,913,881 ($30.9M)

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

Awarding Agency: Department of Defense

Start Date: 2007-03-05

End Date: 2010-10-17

Contract Duration: 1,322 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: MH47G 2.1 PROD MODS

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: MH47G 2.1 PROD MODS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. The contract duration of 1322 days indicates a significant, long-term project. 4. The contract was awarded by the U.S. Special Operations Command, highlighting its strategic importance. 5. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 6. The contract was awarded in Kentucky, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Award Fee (CPAF) structure means the final cost is influenced by performance incentives, making direct price comparisons difficult. However, the total award amount of $30.9 million over approximately 3.6 years suggests a substantial investment in aircraft modifications and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally promotes price discovery and allows the government to select the best value offer. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

The primary beneficiaries are likely U.S. Special Operations Command personnel who will utilize the modified MH47G aircraft. The services delivered involve production modifications and support activities for air transportation, specifically for the MH47G helicopter. The geographic impact is centered in Kentucky, where the contract was awarded, potentially creating or sustaining jobs in the region. Workforce implications may include skilled labor in aerospace engineering, manufacturing, and aircraft maintenance within the contractor's organization and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
The specific nature of 'PROD MODS' (production modifications) could imply significant changes to existing airframes, requiring extensive oversight.
Reliance on a single contractor for specialized modifications might pose a risk if that contractor faces financial or operational difficulties.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract is for modifications to MH47G aircraft, which are critical assets for special operations.
The contract duration indicates a commitment to ensuring the long-term operational readiness of these aircraft.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and support services. The market for such specialized services is often characterized by a limited number of highly capable contractors. Spending in this area is driven by the need to maintain and upgrade aging fleets of military aircraft to meet evolving operational requirements. Comparable spending benchmarks would typically involve other contracts for similar aircraft modifications or fleet support.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger prime contractors likely dominated the bidding process. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary information.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command contracting and program management offices. Accountability measures are likely tied to the performance incentives within the Cost Plus Award Fee structure. Transparency would depend on the public availability of contract performance reports and any Inspector General reviews, which are not detailed here.

Related Government Programs

Special Operations Aviation Support
Aircraft Modification Programs
Defense Logistics and Sustainment
Helicopter Fleet Modernization

Risk Flags

Cost Plus Award Fee contract type requires careful monitoring of performance metrics to ensure value.
Specific 'PROD MODS' details are not provided, making it difficult to assess the scope and complexity of the work.
Limited public information on the number of bidders and specific evaluation criteria for this full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. MH47G 2.1 PROD MODS

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 $30.9 million.

What is the period of performance?

Start: 2007-03-05. End: 2010-10-17.

What is the track record of L-3 Communications Integrated Systems L.P. with similar DoD contracts?

L-3 Communications Integrated Systems L.P. (now part of L3Harris Technologies) has a substantial history of performing complex defense contracts, including aircraft modifications, systems integration, and support services for various branches of the U.S. military. Their experience often involves specialized platforms and demanding operational requirements, aligning with the nature of this MH47G modification contract. Analyzing their past performance on similar Cost Plus Award Fee contracts would reveal their ability to manage costs effectively while meeting performance targets. Historical data on contract awards and performance ratings from sources like the Federal Procurement Data System (FPDS) or contractor performance databases would provide a more detailed assessment of their track record.

How does the Cost Plus Award Fee (CPAF) structure impact the final cost and value for money?

The Cost Plus Award Fee (CPAF) contract structure allows the contractor to recover allowable costs plus a fixed fee that is subject to incentives or penalties based on performance. This means the final price can vary depending on how well the contractor meets or exceeds defined performance objectives. While CPAF can incentivize superior performance and quality, it also introduces uncertainty regarding the final cost. For value-for-money assessment, it's crucial to examine the award fee criteria and the contractor's actual performance against those metrics. If the contractor achieved high performance ratings, the higher final cost might be justified by superior outcomes. Conversely, if performance was mediocre, the government may have paid a premium without commensurate benefits, indicating potentially less favorable value.

What are the primary risks associated with modifying MH47G aircraft for special operations?

Modifying specialized aircraft like the MH47G for special operations inherently carries risks related to technical complexity, integration challenges, and operational effectiveness. Technical risks include unforeseen issues during the integration of new systems, potential compatibility problems, and the need for extensive testing to ensure reliability and safety. Integration risks involve ensuring that the modifications seamlessly work with existing aircraft systems and mission equipment. Operational risks pertain to the potential impact of modifications on the aircraft's performance, maneuverability, and survivability in demanding environments. Furthermore, the specialized nature of special operations missions means that any failure or underperformance of modified systems could have significant consequences.

What is the historical spending pattern for MH47G aircraft modifications and support by the U.S. Special Operations Command?

Historical spending on MH47G aircraft modifications and support by the U.S. Special Operations Command (SOCOM) reflects the ongoing need to maintain and upgrade these critical assets. SOCOM has consistently invested in its aviation capabilities to support special operations missions. Spending patterns would likely show periods of significant investment during major upgrade programs, such as the 'PROD MODS' mentioned, interspersed with ongoing sustainment and maintenance costs. Analyzing past contract awards for similar modifications, upgrades, and sustainment services over several fiscal years would reveal trends in spending levels, the types of modifications pursued, and the contractors frequently engaged. This historical context helps in evaluating whether the $30.9 million awarded for this specific contract is consistent with previous investment levels or represents a significant shift.

How does the NAICS code 488190 (Other Support Activities for Air Transportation) relate to the specific modifications for the MH47G?

The NAICS code 488190, 'Other Support Activities for Air Transportation,' broadly encompasses services related to keeping aircraft operational, including maintenance, repair, and modification. While this code is general, it is appropriate for contracts involving significant modifications and support for specialized military aircraft like the MH47G. These modifications likely involve enhancing the aircraft's capabilities for special operations missions, such as improved communication systems, electronic warfare suites, or payload integration. The 'support activities' aspect could also include logistical support, technical data development, and specialized training related to the modifications, all falling under the umbrella of keeping the air transportation assets mission-ready.

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: $30,913,886

Exercised Options: $30,913,886

Current Obligation: $30,913,881

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: USZA2203D0006

IDV Type: IDC

Timeline