DoD's $395.7M L3 Technologies Contract for Wireless Communications Equipment: A Decade of Spending
Contract Overview
Contract Amount: $395,672,387 ($395.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-04-14
End Date: 2012-08-12
Contract Duration: 3,408 days
Daily Burn Rate: $116.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $395.7 million to L3 TECHNOLOGIES, INC. for work described as: Key points: 1. The contract, valued at $395.7 million, was awarded to L3 TECHNOLOGIES, INC. by the Department of Defense. 2. Awarded under full and open competition, the contract aimed to procure Radio and Television Broadcasting and Wireless Communications Equipment. 3. The contract spanned nearly a decade, from April 2003 to August 2012, indicating a long-term need for these specialized equipment. 4. The absence of small business participation suggests the contract may have been geared towards large, specialized manufacturers. 5. The firm fixed price contract type implies that the contractor bore the risk of cost overruns.
Value Assessment
Rating: fair
The total award value of $395.7 million over approximately 9.5 years suggests a significant but potentially reasonable investment for specialized defense communications equipment. Benchmarking against similar long-term, complex defense contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The duration and nature of the equipment likely influenced the number and type of bidders.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, although the long-term nature of this contract means sustained expenditure.
Public Impact
Ensured the Department of Defense had access to critical wireless communications equipment for over nine years. Supported a major defense contractor, potentially contributing to jobs and technological advancements in the communications sector. The long contract duration highlights the sustained need for reliable communication systems in defense operations. Lack of small business involvement may indicate a missed opportunity for economic inclusion in this specific procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential obsolescence of technology if not managed proactively.
- Limited small business participation might suggest a less diverse supplier base.
- Firm Fixed Price contracts can sometimes lead to less flexibility for scope changes.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Contract supported a significant defense need for essential communications equipment.
- Long-term nature provided stability for both the government and the contractor.
Sector Analysis
The procurement falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. Spending in this sector for defense is critical for maintaining communication superiority. Benchmarks for similar long-term, high-value defense equipment contracts would typically be in the tens to hundreds of millions of dollars.
Small Business Impact
This contract did not involve small businesses, as indicated by the 'sb' field being false. This suggests the procurement likely required specialized capabilities or large-scale production capacity typically held by larger corporations.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contract compliance and performance. The long duration necessitates ongoing oversight to ensure value and adherence to terms.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (9.5 years)
- No small business participation
- Potential for technology obsolescence over time
- Firm Fixed Price may limit flexibility for scope changes
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $395.7 million to L3 TECHNOLOGIES, INC.. See the official description on USAspending.
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 $395.7 million.
What is the period of performance?
Start: 2003-04-14. End: 2012-08-12.
What was the specific type of wireless communications equipment procured, and how did its capabilities evolve over the contract's lifespan?
The data does not specify the exact type of wireless communications equipment. However, given the contract's duration (2003-2012) and the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code, it likely included advanced radio systems, secure communication devices, or related infrastructure components. The evolution of capabilities would depend on specific contract modifications and technological advancements adopted by L3 Technologies during the period.
How did the firm fixed price structure impact the government's ability to adapt to changing technological requirements during the contract?
A firm fixed price (FFP) contract generally offers less flexibility for scope changes without formal modifications and potential price adjustments. If technological requirements evolved significantly, the DoD might have needed to negotiate separate contracts or modifications, potentially leading to delays or increased costs compared to more flexible contract types like cost-plus. This structure incentivized the contractor to control costs but could limit agility.
Were there any performance issues or contract disputes reported during the nearly decade-long execution of this contract?
The provided data does not contain information on performance issues or contract disputes. However, for a contract of this magnitude and duration, it is common for government agencies to have performance metrics and oversight mechanisms in place. The absence of explicit flags for disputes in this summary data does not preclude the possibility of minor issues or resolutions occurring during its execution.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
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: 2003-04-14
Current End Date: 2012-08-12
Potential End Date: 2012-08-12 00:00:00
Last Modified: 2019-03-19
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