DoD's $150M CPAF Task Order to L-3 Communications for Air Transportation Support
Contract Overview
Contract Amount: $14,986,749 ($15.0M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2008-03-27
End Date: 2009-01-25
Contract Duration: 304 days
Daily Burn Rate: $49.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: CPAF TASK ORDERS
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CPAF TASK ORDERS Key points: 1. Significant contract value of $149.9M awarded to L-3 Communications. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract type is Cost Plus Award Fee (CPAF), which can incentivize performance but may lead to higher costs. 4. The contract supports 'Other Support Activities for Air Transportation' for U.S. Special Operations Command.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure allows for performance incentives but can lead to costs exceeding initial estimates if not managed closely. Without specific benchmarks for 'Other Support Activities for Air Transportation,' a direct pricing comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the CPAF structure means the final cost is not fixed upfront and depends on performance, potentially impacting the ultimate price paid by taxpayers.
Taxpayer Impact: Taxpayer funds are subject to the final award fee determination and actual costs incurred under the CPAF contract, which can fluctuate.
Public Impact
Supports critical air transportation services for U.S. Special Operations Command. The contract duration of 304 days indicates a focused, short-term operational need. Awarded in Kentucky, potentially impacting local economies through job creation and subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contract type can lead to cost overruns if performance is not tightly managed.
- Lack of specific unit cost data makes it hard to assess efficiency.
- Contract awarded in 2008, historical data may not reflect current market conditions.
Positive Signals
- Full and open competition utilized.
- Contract supports vital Special Operations Command needs.
- Award fee structure incentivizes contractor performance.
Sector Analysis
This contract falls under general support services for air transportation, a sector critical for military operations. Spending benchmarks for such specialized support can vary widely based on the specific services rendered and the operational tempo of the supported command.
Small Business Impact
The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The CPAF contract type requires robust oversight to ensure performance standards are met and award fees are justified. The Department of Defense and U.S. Special Operations Command are responsible for monitoring contractor performance and expenditures.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost creep due to CPAF structure.
- Lack of detailed performance metrics in the provided data.
- Limited insight into small business participation.
- Historical data may not reflect current market conditions.
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 $15.0 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CPAF TASK ORDERS
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 $15.0 million.
What is the period of performance?
Start: 2008-03-27. End: 2009-01-25.
What specific services are included under 'Other Support Activities for Air Transportation' and how do they align with SOCOM's mission requirements?
These activities likely encompass a range of logistical and operational support for air assets and personnel crucial to SOCOM's unique missions. This could include maintenance coordination, flight scheduling, ground support, and potentially specialized equipment handling. Understanding the precise nature of these services is key to evaluating their necessity and cost-effectiveness within the SOCOM operational framework.
How effectively did the 'full and open competition' process ensure competitive pricing given the CPAF structure?
While 'full and open competition' is a strong indicator of a competitive process, the CPAF structure means the final price is variable. The initial bids likely focused on proposed costs and performance metrics that would earn award fees. Effective price discovery relies on the government's ability to negotiate favorable base costs and establish clear, objective award fee criteria that genuinely reward efficiency and performance.
What was the final cost and performance outcome of this contract, and how does it compare to similar contracts awarded around the same period?
The provided data only includes the initial award amount and does not detail the final expenditure or performance ratings. To assess value and effectiveness, a review of the contract's completion report, final cost, and any awarded fees would be necessary. Comparing this to similar contracts for air transportation support during 2008-2009 would provide crucial benchmarking data.
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: $14,986,749
Exercised Options: $14,986,749
Current Obligation: $14,986,749
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2008-03-27
Current End Date: 2009-01-25
Potential End Date: 2009-01-25 00:00:00
Last Modified: 2011-03-18
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