DoD's $163.8M MH-60M Enhancement Contract Awarded to L-3 Communications
Contract Overview
Contract Amount: $16,383,279 ($16.4M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2008-03-13
End Date: 2009-12-31
Contract Duration: 658 days
Daily Burn Rate: $24.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: CC3763 SIQ MH-60M ENHANCEMENT SPT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CC3763 SIQ MH-60M ENHANCEMENT SPT Key points: 1. Contract awarded for MH-60M helicopter enhancements. 2. L-3 Communications Integrated Systems L.P. is the sole awardee. 3. The contract falls under 'Other Support Activities for Air Transportation'. 4. Significant taxpayer investment in specialized aircraft support.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. The award amount of $163.8 million for a 658-day duration suggests a substantial investment in enhancements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific nature of 'enhancement support' might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for specialized military helicopter upgrades, the value of which depends on operational necessity and cost-effectiveness.
Public Impact
Enhances critical MH-60M helicopter capabilities for special operations. Supports advanced aviation technology and readiness. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher spending.
- Limited information on specific enhancement details and necessity.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense assets.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft support and enhancement services. Spending benchmarks for such specialized services can vary widely based on technology and mission requirements.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
Oversight is crucial for CPAF contracts to ensure costs are managed effectively and award fees are justified by performance. The Department of Defense and U.S. Special Operations Command are responsible for monitoring this contract.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Award Fee contract type.
- Lack of specific technical details on enhancements.
- No small business participation noted.
- Potential for cost overruns.
- Limited public information on performance metrics.
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 $16.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CC3763 SIQ MH-60M ENHANCEMENT SPT
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 $16.4 million.
What is the period of performance?
Start: 2008-03-13. End: 2009-12-31.
What specific enhancements are being made to the MH-60M helicopters, and how do these directly contribute to mission effectiveness?
The provided data does not detail the specific enhancements. Understanding the technical upgrades, their impact on operational capabilities (e.g., range, payload, survivability, mission systems), and how they align with evolving special operations requirements is crucial for assessing value. Without this, it's difficult to determine if the $163.8 million investment yields a proportional increase in mission effectiveness.
What are the potential cost overruns or inefficiencies associated with the Cost Plus Award Fee (CPAF) contract structure for this enhancement project?
CPAF contracts allow for cost reimbursement plus a fee that is adjusted based on performance. While intended to incentivize good performance, they carry a risk of cost overruns if the baseline cost estimates are inaccurate or if performance metrics are not rigorously defined and monitored. The government must ensure robust oversight to prevent excessive spending and ensure the award fee is truly earned through exceptional service.
How does the performance of L-3 Communications on this contract compare to industry benchmarks for similar MH-60M support or enhancement services?
Benchmarking L-3's performance requires access to detailed performance metrics and cost data, which are not publicly available in this dataset. Comparing their delivery timelines, quality of work, and cost efficiency against other providers of similar specialized aviation support would be necessary. This comparison is vital for determining if the government received competitive value and if L-3's pricing and execution were optimal.
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: $16,383,279
Exercised Options: $16,383,279
Current Obligation: $16,383,279
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2008-03-13
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2013-03-13
More Contracts from L-3 Communications Integrated Systems L.P.
- Federal Contract — $724.0M (Department of Defense)
- Federal Contract — $570.3M (Department of Defense)
- MH-60M Production Effort — $68.9M (Department of Defense)
- 200611!001691!9700!h92222!ussocom HQ, DIR. of Procurement !usza2203d0006 !A!N! !Y!7348 ! !20060801!20100911!186729133!008898884!008898843!N!L-3 Communications Corporation!5749 Briar Hill RD !lexington !ky!40516!46027!067!21!lexington-Fayette !fayette !kentucky !+000015595062!n!n!000000000000!k099!modification of Eq/Miscellaneous Equipment !S1 !services !000 !NOT Discernable !488190!E! !5!B!S! ! !D!20060930!B! ! !B! !a!u!r!2!001!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $35.3M (Department of Defense)
- MH-60M Aircraft 10, 11, & 12 Production — $33.6M (Department of Defense)
View all L-3 Communications Integrated Systems L.P. federal contracts →
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