DoD Awards $12.3M CPAF Task Order to L-3 Communications for Air Transportation Support
Contract Overview
Contract Amount: $12,342,677 ($12.3M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2008-02-01
End Date: 2009-01-31
Contract Duration: 365 days
Daily Burn Rate: $33.8K/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. CER 08-096-RA-S-IR BASE AND OPT 1.
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CPAF TASK ORDERS. CER 08-096-RA-S-IR BASE AND OPT 1. Key points: 1. Contract awarded to L-3 Communications Integrated Systems L.P. for $12.3 million. 2. Task order falls under a larger contract for 'Other Support Activities for Air Transportation'. 3. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance. 4. Awarded by the U.S. Special Operations Command, indicating a specialized need. 5. The base period of performance is one year, with potential for options.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure can lead to costs exceeding initial estimates if performance incentives are not carefully managed. Benchmarking against similar CPAF contracts for air transportation support is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPAF structure are not detailed, making it hard to assess if the final price represents optimal value.
Taxpayer Impact: Taxpayer funds are used for this contract. The CPAF structure means costs could fluctuate based on performance, potentially impacting the final taxpayer outlay.
Public Impact
Supports U.S. Special Operations Command's air transportation needs, crucial for mission readiness. The CPAF contract type aims to ensure high performance through incentive-based payments. Awarded through full and open competition, promoting a fair marketplace. The contract duration is one year, allowing for flexibility and reassessment of needs. Located in Kentucky, potentially impacting local employment and economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPAF if not managed tightly.
- Lack of detailed cost breakdown makes value assessment challenging.
- Specific performance metrics for award fee are not public.
Positive Signals
- Awarded via full and open competition.
- CPAF structure incentivizes contractor performance.
- Supports critical Special Operations Command missions.
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is vital for military logistics and operations. Spending in this sector can vary significantly based on geopolitical events and operational tempo. Benchmarks are difficult without specific service details.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The award was made by the Department of Defense, which has established oversight mechanisms. However, the effectiveness of oversight for CPAF contracts depends on robust performance monitoring and financial controls.
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 transparency on specific performance metrics.
- Limited insight into subcontractor participation.
- Contract value is significant, requiring diligent oversight.
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 $12.3 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CPAF TASK ORDERS. CER 08-096-RA-S-IR BASE AND OPT 1.
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 $12.3 million.
What is the period of performance?
Start: 2008-02-01. End: 2009-01-31.
What specific performance metrics are used to determine the award fee in this CPAF contract, and how do they align with mission objectives?
The specific performance metrics for the award fee are not publicly detailed in the provided data. Typically, CPAF contracts link award fees to achieving predefined objectives related to cost control, schedule adherence, technical performance, and overall quality of service. For this contract, these metrics would likely be tailored to the unique requirements of U.S. Special Operations Command's air transportation support, ensuring alignment with critical mission success factors.
How does the CPAF structure mitigate the risk of cost overruns compared to other contract types like Cost Plus Fixed Fee (CPFF)?
CPAF mitigates cost overrun risk by incentivizing the contractor to perform efficiently and effectively to earn award fees, rather than simply passing costs through. Unlike CPFF, where profit is fixed, CPAF allows for variable profit based on performance. This encourages the contractor to manage costs proactively to achieve higher award fees, theoretically leading to better value and controlled spending compared to less incentive-driven structures.
What is the anticipated impact of this contract on the operational readiness and effectiveness of U.S. Special Operations Command?
This contract is expected to have a positive impact on operational readiness by ensuring reliable and efficient air transportation support, which is critical for SOCOM missions. The CPAF structure, tied to performance, suggests a focus on delivering high-quality services that directly contribute to mission effectiveness. Consistent and timely air support is fundamental for deployment, logistics, and overall operational tempo.
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: $12,342,677
Exercised Options: $12,342,677
Current Obligation: $12,342,677
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2008-02-01
Current End Date: 2009-01-31
Potential End Date: 2009-01-31 00:00:00
Last Modified: 2011-02-17
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