DoD's $20.4M contract for FOSOV Mechanics Support awarded to L-3 Communications Integrated Systems L.P

Contract Overview

Contract Amount: $20,432,189 ($20.4M)

Contractor: L-3 Communications Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2010-01-22

End Date: 2011-01-25

Contract Duration: 368 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CC8640 FOSOV MECHANICS SUPPORT

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P. for work described as: CC8640 FOSOV MECHANICS SUPPORT Key points: 1. Contract value of $20.4 million over its duration. 2. Awarded under full and open competition. 3. Contract type is Cost Plus Fixed Fee (CPFF). 4. Duration of 368 days. 5. Supports air transportation activities. 6. Geographic location of performance is Kentucky.

Value Assessment

Rating: fair

The contract value of $20.4 million for a 368-day period suggests a significant investment in specialized support. Without specific performance metrics or comparable contract data, it's challenging to definitively benchmark value for money. The CPFF structure can incentivize cost increases, requiring robust oversight to ensure efficiency. However, the fixed fee component provides some predictability in contractor profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is generally expected to foster competitive pricing and encourage the selection of the most capable and cost-effective solution. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to better pricing and a wider range of innovative solutions being considered, maximizing the use of public funds.

Public Impact

Provides essential mechanics support for FOSOV (Forward Operating Support Vehicle Operations) assets. Ensures the operational readiness of critical air transportation capabilities. Supports specialized aviation maintenance personnel and resources. Impacts the U.S. Special Operations Command's ability to execute missions. Performance is concentrated in Kentucky, potentially creating local economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Lack of specific performance metrics makes value assessment difficult.
Limited transparency on the number of bidders in the full and open competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract supports critical U.S. Special Operations Command missions.
Performance is geographically concentrated, potentially benefiting local economies.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for specialized aircraft maintenance and operational support is competitive, with numerous firms offering a range of capabilities. Spending in this area is crucial for maintaining the readiness and effectiveness of military aviation assets, particularly for specialized units like SOCOM. Benchmarking would require comparison to similar support contracts for specialized aircraft or operational units.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions, nor is there information on subcontracting plans. Given the nature of specialized mechanics support for military aviation, it's possible that larger, established defense contractors are primary awardees. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this Department of Defense contract would typically involve contracting officers, program managers, and potentially Inspector General (IG) functions. The CPFF contract type necessitates close monitoring of costs and performance to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency regarding performance reviews and cost audits would be key indicators of effective oversight.

Related Government Programs

Special Operations Forces Support Contracts
Aviation Maintenance Services
Air Transportation Support
Department of Defense Logistics Support

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges
Potential for Inefficient Resource Utilization

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.. CC8640 FOSOV MECHANICS 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 $20.4 million.

What is the period of performance?

Start: 2010-01-22. End: 2011-01-25.

What is the track record of L-3 Communications Integrated Systems L.P. with similar DoD contracts?

L-3 Communications Integrated Systems L.P. (now part of L3Harris Technologies) has a substantial history of performing complex support and integration services for the Department of Defense. They have been involved in numerous contracts related to aircraft modification, sustainment, and operational support across various military branches. Their experience often includes providing specialized technical expertise, logistics, and maintenance for sophisticated defense platforms. Analyzing their past performance on similar Cost Plus Fixed Fee contracts, particularly those involving aviation support or special operations, would provide insight into their ability to manage costs effectively and deliver required capabilities within budget and schedule.

How does the value of this contract compare to similar FOSOV mechanics support contracts?

Direct comparison of this $20.4 million contract value is challenging without access to a database of highly specific FOSOV mechanics support contracts. However, considering it's for approximately one year of support (368 days), it represents a significant investment. The cost per day is roughly $55,500. This figure needs to be contextualized against the complexity of the FOSOV assets being supported, the level of technical expertise required, and the specific services rendered (e.g., routine maintenance, unscheduled repairs, parts management). Benchmarking against contracts for similar specialized aviation support for other SOCOM units or comparable military platforms would offer a more robust assessment of value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for mechanics support?

The primary risks with a CPFF contract for mechanics support revolve around cost control and contractor efficiency. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' element means the government bears the risk of actual costs incurred. If the contractor is not efficient or if unforeseen issues arise (e.g., complex repairs, parts shortages, labor inefficiencies), costs can escalate significantly. This necessitates rigorous government oversight to scrutinize all costs, ensure they are reasonable and allocable, and that the contractor is making diligent efforts to control expenses. Without strong oversight, there's a risk of paying inflated prices for services.

How effective is L-3 Communications Integrated Systems L.P. in managing costs on CPFF contracts?

Assessing L-3 Communications Integrated Systems L.P.'s cost management effectiveness on CPFF contracts requires a detailed review of their historical performance data, including any incurred cost audits or performance reviews on similar contracts. CPFF contracts inherently place a greater burden on the government to monitor costs. If L-3 has a history of consistently delivering within projected cost ranges on similar contracts, or if their cost proposals have been consistently validated as reasonable, it suggests good cost management. Conversely, a pattern of significant cost overruns on prior CPFF agreements would raise concerns about their ability to manage expenses effectively under this contract type.

What is the historical spending trend for FOSOV mechanics support by the U.S. Special Operations Command?

Analyzing historical spending trends for FOSOV mechanics support by USSOCOM would require access to historical contract databases and budget allocations specifically for this capability. Without that granular data, it's difficult to establish a trend. However, it's reasonable to assume that spending in this area is driven by operational tempo, the age and complexity of the FOSOV fleet, and evolving mission requirements. Fluctuations in spending could indicate changes in operational tempo, new technology integration, or shifts in sustainment strategies. Consistent or increasing spending might suggest a sustained need for these specialized support services.

What are the implications of the 'Other Support Activities for Air Transportation' NAICS code for this contract?

The NAICS code 'Other Support Activities for Air Transportation' (488190) indicates that the contract's scope likely involves a broad range of services beyond basic aircraft maintenance. This could include ground support, air traffic control support, cargo handling, aircraft de-icing, or other essential services that facilitate air transportation operations. For a contract supporting specialized military assets like FOSOV, this suggests a comprehensive support package is being procured, ensuring the entire ecosystem around air operations is functional. It implies the contractor is responsible for a wide array of logistical and operational functions critical to mission success.

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: $20,432,189

Exercised Options: $20,432,189

Current Obligation: $20,432,189

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2203D0006

IDV Type: IDC

Timeline