DoD Awards $245M for Communications Equipment, L3 Technologies Inc. Dominates
Contract Overview
Contract Amount: $245,026,545 ($245.0M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-06-06
End Date: 2012-03-29
Contract Duration: 3,949 days
Daily Burn Rate: $62.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200109!003141!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CL539 !A!N!*!N! !20010606!20080611!102766904!102766904!048341838!N!DELFIN SYSTEMS !3000 PATRICK HENRY DR !SANTA CLARA !CA!95054!69084!085!06!SANTA CLARA !SANTA CLARA !CALIFORNIA!+000006000000!N!N!000000000000!AC67!RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!*!*!3! ! ! !*!*!*!B!*!*!B! !A !N!J!2!003!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $245.0 million to L3 TECHNOLOGIES, INC. for work described as: 200109!003141!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CL539 !A!N!*!N! !20010606!20080611!102766904!102766904!048341838!N!DELFIN SYSTEMS !3000 PATRICK HENRY DR !SANTA CLARA !CA!95054!69084!085!06!SANTA CLARA !SANTA… Key points: 1. Significant award to L3 Technologies Inc. for communications equipment development. 2. Contract duration of nearly 10 years suggests a long-term program. 3. Full and open competition was utilized, indicating a potentially competitive bidding process. 4. The sector is Defense, specifically electronics and communication systems. 5. No small business participation was noted.
Value Assessment
Rating: fair
The total award amount is substantial at $245M. Without specific unit details or historical pricing for similar systems, a direct comparison is difficult. However, the duration and scope suggest a complex development program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. The use of a firm fixed price contract further incentivizes cost control by the contractor.
Taxpayer Impact: While competition is positive for taxpayers, the large value and long duration of this contract warrant close monitoring to ensure continued value for money.
Public Impact
Taxpayers are funding advanced communications and electronics systems for the Department of Defense. The award supports a major defense contractor, L3 Technologies Inc., and its operations. This contract contributes to national defense capabilities in electronic warfare and communication. The long-term nature of the contract implies ongoing investment in this technology area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to cost overruns if not managed effectively.
- Potential for technology obsolescence over the contract's 10-year span.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Award to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the development of electronics and communication equipment. Spending in this area is critical for maintaining military technological superiority, with benchmarks varying widely based on system complexity and technological advancement.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, L3 Technologies Inc., is handling the entire scope of work, or that subcontracting opportunities for small businesses were not pursued or identified.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Given the significant value and long duration, robust oversight is crucial to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (nearly 10 years).
- No small business participation.
- Potential for technological obsolescence.
- High contract value requires diligent oversight.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $245.0 million to L3 TECHNOLOGIES, INC.. 200109!003141!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CL539 !A!N!*!N! !20010606!20080611!102766904!102766904!048341838!N!DELFIN SYSTEMS !3000 PATRICK HENRY DR !SANTA CLARA !CA!95054!69084!085!06!SANTA CLARA !SANTA CLARA !CALIFORNIA!+000006000000!N!N!000000000000!AC67!RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!*!*!3! ! ! !*!*!*!B!*!*!B!
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $245.0 million.
What is the period of performance?
Start: 2001-06-06. End: 2012-03-29.
What specific communication-electronic systems are being developed under this contract, and how do they align with current and future military needs?
The contract details mention 'RDTE/ELECTRONICS & COMMUNICATION EQ-OP SYSTEM DEV' and 'ELECTRONICS AND COMMUNICATION'. While specific system names are not provided, the focus is on research, development, testing, and evaluation of operational systems. This likely includes advanced radio, satellite, or network communication equipment designed to enhance battlefield awareness and interoperability for the DoD.
Given the 10-year duration, what mechanisms are in place to manage technological obsolescence and ensure the developed systems remain relevant?
Long-duration contracts often incorporate phased development, technology refresh points, or options for upgrades. The firm fixed price nature might limit flexibility for mid-contract changes. Effective program management and regular reviews with the contractor would be essential to anticipate and mitigate obsolescence risks.
How does the $245M award compare to similar R&D contracts for advanced communication systems within the DoD?
Benchmarking this award requires comparison with contracts for similar system complexity, R&D scope, and duration. $245M over nearly 10 years for advanced electronics development is substantial but not necessarily out of line for cutting-edge defense technology programs. Detailed analysis of specific system capabilities and market rates would be needed for a precise comparison.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 9890 TOWNE CENTRE DR STE 100, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2001-06-06
Current End Date: 2012-03-29
Potential End Date: 2012-03-29 00:00:00
Last Modified: 2018-03-20
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