DoD Awards $60.5M L3 Technologies Contract for Aircraft Manufacturing Support
Contract Overview
Contract Amount: $60,496,974 ($60.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-11-01
End Date: 2022-10-15
Contract Duration: 1,444 days
Daily Burn Rate: $41.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: L-3 DEPOT ACTIVATION AT TOBYHANNA ARMY DEPOT AND WARNER-ROBINS AIR LOGISTICS COMPLEX
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $60.5 million to L3 TECHNOLOGIES, INC. for work described as: L-3 DEPOT ACTIVATION AT TOBYHANNA ARMY DEPOT AND WARNER-ROBINS AIR LOGISTICS COMPLEX Key points: 1. Contract awarded to L3 Technologies, Inc. for aircraft manufacturing support. 2. Significant value of $60.5 million over a 4-year period. 3. No competition was involved in this definitive contract award. 4. The contract falls under the Aircraft Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $60.5 million for a 4-year period suggests a substantial investment. Without specific unit details or benchmarks for similar depot activation services, a precise pricing assessment is difficult. However, the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.
Public Impact
Supports critical aircraft manufacturing and depot activation functions for the Air Force. Ensures continued operational readiness and maintenance capabilities for military aircraft. Potential for job creation and economic impact within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed-price contract
- Supports critical defense infrastructure
Sector Analysis
This contract is within the Aircraft Manufacturing sector, which is a critical component of the defense industrial base. Spending in this sector is often driven by national security needs and can involve complex, high-value procurements.
Small Business Impact
The data indicates that small business participation was not a factor in this specific contract award, as the prime contractor is L3 Technologies, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The award of a definitive contract suggests a structured procurement process. However, the sole-source nature warrants scrutiny to ensure fair pricing and justification for the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price discovery
Tags
aircraft-manufacturing, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.5 million to L3 TECHNOLOGIES, INC.. L-3 DEPOT ACTIVATION AT TOBYHANNA ARMY DEPOT AND WARNER-ROBINS AIR LOGISTICS COMPLEX
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $60.5 million.
What is the period of performance?
Start: 2018-11-01. End: 2022-10-15.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason. However, such awards necessitate rigorous review to ensure they are in the government's best interest and that the price is fair and reasonable.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risk of a sole-source contract is the absence of competitive pressure, which can lead to inflated prices and reduced innovation. There's also a risk that the government may not be getting the best value or that the contractor may not be incentivized to perform at the highest level. Oversight is crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of the Air Force's aircraft sustainment and manufacturing capabilities?
This contract directly supports depot activation, which is vital for maintaining and modernizing Air Force aircraft. By ensuring these critical functions are operational, it contributes to the readiness and longevity of the fleet, thereby enhancing overall mission effectiveness. The specific impact depends on the scope of 'depot activation'.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,206,473
Exercised Options: $63,206,473
Current Obligation: $60,496,974
Actual Outlays: $6,751,762
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $10,603,577
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-11-01
Current End Date: 2022-10-15
Potential End Date: 2022-10-15 00:00:00
Last Modified: 2022-10-11
More Contracts from L3 Technologies, Inc.
- 63 Each of the Following Hardware Items for the Bradley Fighting Vehicle System (bfvs): Thor Hmpt 800HP Reman Transmission, NSN 2520-01-626-5061 TCM Electronic Assembly, NSN 2520-01-627-6468 Shift Tower, NSN 2520-01-465-5184 TEC Cable, NSN 6150-01-631-6134 — $456.5M (Department of Defense)
- Purchase of 538 EA E-Rovers — $401.1M (Department of Defense)
- Federal Contract — $395.7M (Department of Defense)
- CEC System Production and Repair — $315.9M (Department of Defense)
- Undersea Warfare Training Range (uswtr) Program Requirements Will Provide the Capability for Undersea Warfare (USW) Training and Assessment in Shallow Water and Deep Water Under Adverse Conditions for AIR, Surface, and Subsurface Forces — $267.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)