DoD Awards $33.6M for MH-60M Aircraft Production to L-3 Communications
Contract Overview
Contract Amount: $33,597,403 ($33.6M)
Contractor: L-3 Communications Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2009-02-18
End Date: 2010-10-17
Contract Duration: 606 days
Daily Burn Rate: $55.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH-60M AIRCRAFT 10, 11, & 12 PRODUCTION
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: MH-60M AIRCRAFT 10, 11, & 12 PRODUCTION Key points: 1. Contract awarded for MH-60M aircraft production, a critical asset for Special Operations Command. 2. L-3 Communications Integrated Systems L.P. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can carry higher risk. 4. The sector is primarily Defense, with implications for aviation support activities.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost overruns, potentially increasing the final price. Benchmarking is difficult without specific unit cost data.
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 outcomes are not detailed.
Taxpayer Impact: Taxpayer funds are being used for the production of specialized military aircraft, supporting national defense objectives.
Public Impact
Ensures continued availability of MH-60M helicopters for critical missions. Supports advanced aviation manufacturing capabilities within the defense industrial base. Potential for cost growth due to the CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited visibility on unit cost efficiency
Positive Signals
- Full and open competition
- Supports critical defense asset production
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft production and support activities. Spending benchmarks for similar specialized aircraft production can vary widely based on complexity and quantity.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is managed by the Department of Defense and U.S. Special Operations Command. The CPFF structure necessitates close monitoring of costs and performance to ensure 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 visibility on unit cost efficiency
- Sole awardee despite full and open competition
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 $33.6 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. MH-60M AIRCRAFT 10, 11, & 12 PRODUCTION
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 $33.6 million.
What is the period of performance?
Start: 2009-02-18. End: 2010-10-17.
What is the projected total cost per MH-60M aircraft under this contract, and how does it compare to historical or industry benchmarks?
The provided data does not specify the total cost per aircraft, only the total award amount for 10, 11, & 12 production runs. A Cost Plus Fixed Fee structure inherently allows for cost variability. To assess value, a detailed breakdown of direct costs, indirect costs, and the fixed fee, compared against similar aircraft programs or commercial equivalents, would be necessary.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this aircraft production, and how are they being mitigated?
The primary risk with CPFF is the contractor's incentive to increase costs, as their fee is a percentage of those costs. Mitigation typically involves stringent oversight, detailed cost audits, and clear performance metrics. The government must actively manage scope and ensure efficient resource utilization to control potential cost overruns and maintain value.
How effective is the full and open competition process in ensuring the best value for taxpayer dollars in specialized defense aircraft procurement?
Full and open competition is designed to maximize the pool of potential bidders, fostering price reductions and innovation, thereby aiming for best value. However, for highly specialized defense assets like the MH-60M, the number of capable bidders may be limited. Effectiveness hinges on the clarity of requirements and the rigor of the evaluation process to ensure the lowest price for acceptable quality.
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
Solicitation ID: USZA2202R0050
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: $33,597,403
Exercised Options: $33,597,403
Current Obligation: $33,597,403
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: USZA2203D0006
IDV Type: IDC
Timeline
Start Date: 2009-02-18
Current End Date: 2010-10-17
Potential End Date: 2010-10-17 00:00:00
Last Modified: 2011-11-20
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- 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)
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