DoD's $21.3M AEHF ACTS II Contract Awarded to L3 Technologies Raises Questions on Competition

Contract Overview

Contract Amount: $21,286,509 ($21.3M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-01

End Date: 2019-05-31

Contract Duration: 1,733 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) COMMUNICATION SECURITY/TRANSITION SECURITY SYSTEM II (ACTS II)

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to L3 TECHNOLOGIES, INC. for work described as: IGF::CT::IGF ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) COMMUNICATION SECURITY/TRANSITION SECURITY SYSTEM II (ACTS II) Key points: 1. Contract awarded to L3 Technologies for $21.3M for AEHF ACTS II. 2. The contract was not competed, raising concerns about price discovery. 3. Services fall under 'All Other Professional, Scientific, and Technical Services'. 4. The contract duration was 1733 days, ending May 31, 2019.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $21.3M price represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for this $21.3M contract may have resulted in inflated costs, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense relies on secure communication systems like AEHF ACTS II. Lack of transparency in sole-source awards can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing

Positive Signals

Essential defense communication system

Sector Analysis

This contract falls under professional, scientific, and technical services, a broad category. Benchmarks for similar complex communication security systems are hard to establish without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Further oversight would be needed to confirm the justification for the sole-source award and the reasonableness of costs.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
Difficulty in benchmarking price

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to L3 TECHNOLOGIES, INC.. IGF::CT::IGF ADVANCED EXTREMELY HIGH FREQUENCY (AEHF) COMMUNICATION SECURITY/TRANSITION SECURITY SYSTEM II (ACTS II)

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 $21.3 million.

What is the period of performance?

Start: 2014-09-01. End: 2019-05-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgency, unique capabilities, or lack of market availability. A thorough review would be required to validate the necessity of this approach for the AEHF ACTS II system.

How was the fixed fee determined in this Cost Plus Fixed Fee contract?

The data does not detail how the fixed fee was determined. In CPFF contracts, the fee is negotiated based on anticipated costs and profit margin. Without competitive proposals, assessing the reasonableness of this negotiated fee is challenging and could represent a risk to taxpayer value.

What measures were in place to ensure cost control and efficiency given the contract type?

The data does not specify cost control measures. For Cost Plus Fixed Fee contracts, especially sole-source ones, robust government oversight, including audits and performance monitoring, is crucial to ensure contractor efficiency and prevent cost overruns. The effectiveness of these measures is not evident from the provided information.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 1 FEDERAL ST, CAMDEN, NJ, 08103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,025,464

Exercised Options: $27,460,954

Current Obligation: $21,286,509

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $198,404

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline