DoD's $17.2M Contract for Mechanic Support Awarded to L-3 Communications
Contract Overview
Contract Amount: $17,229,314 ($17.2M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2009-01-26
End Date: 2010-01-25
Contract Duration: 364 days
Daily Burn Rate: $47.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CC8562, FOSOV MECHANIC SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CC8562, FOSOV MECHANIC SUPPORT Key points: 1. Contract value of $17.2 million for specialized mechanic support. 2. Awarded to L-3 Communications Integrated Systems L.P. 3. Contract falls under the 'Other Support Activities for Air Transportation' category. 4. Significant spending in a niche support sector for the Department of Defense.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award fee mechanism (AW: DO) suggests performance incentives, but the fixed fee component limits upside for the contractor and potential for exceptional value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for value. However, the Cost Plus Fixed Fee structure warrants close monitoring to ensure costs remain controlled.
Public Impact
Supports critical operational capabilities for the U.S. Special Operations Command. Ensures readiness and maintenance of specialized aircraft or equipment. Potential impact on mission effectiveness if support is delayed or inadequate.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Limited duration of contract (1 year) may lead to frequent re-competition costs.
- No specific small business set-aside noted.
Positive Signals
- Awarded under full and open competition.
- Includes an award fee to incentivize performance.
- Supports critical Special Operations Command missions.
Sector Analysis
This contract falls within the broader aerospace and defense support sector. Spending benchmarks for similar mechanic support services can vary widely based on specialization and location, but $17.2M for a year of support suggests a significant scope of work.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB: false). There is no specific information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's award fee structure implies some level of performance oversight. However, the Cost Plus Fixed Fee nature necessitates robust government monitoring to control costs and ensure contractor accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Limited contract duration.
- No explicit small business participation noted.
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 $17.2 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CC8562, FOSOV MECHANIC SUPPORT
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 $17.2 million.
What is the period of performance?
Start: 2009-01-26. End: 2010-01-25.
What specific mechanic support services were included in this contract, and how do they align with the operational needs of U.S. Special Operations Command?
The contract details 'Other Support Activities for Air Transportation' and 'Mechanic Support.' This likely encompasses specialized maintenance, repair, and technical services for aircraft or related aviation assets critical to SOCOM's unique operational requirements. The exact scope would detail the types of aircraft, systems, and level of technical expertise required.
How effectively did the Cost Plus Fixed Fee structure manage costs and ensure value for money given the $17.2M expenditure?
Cost Plus Fixed Fee contracts carry inherent risks of cost escalation. While the fixed fee provides a baseline profit, the 'cost plus' element requires diligent government oversight to prevent unnecessary expenses. The effectiveness in managing costs would depend on the rigor of the contracting officer's surveillance and the contractor's adherence to efficient practices.
What was the competitive landscape for this 'Other Support Activities for Air Transportation' service, and did the full and open competition yield optimal pricing?
Full and open competition suggests multiple bidders participated, which generally aids price discovery. However, the specific nature of specialized mechanic support for SOCOM might limit the number of qualified bidders. Analyzing the number of bids received and the final negotiated price against independent cost estimates would determine if optimal pricing was achieved.
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 FIXED FEE (U)
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: $17,229,314
Exercised Options: $17,229,314
Current Obligation: $17,229,314
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2009-01-26
Current End Date: 2010-01-25
Potential End Date: 2010-01-25 00:00:00
Last Modified: 2011-11-20
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