DoD Awards $70.8M Radio Equipment Contract to L3 Technologies, Inc. with No Competition
Contract Overview
Contract Amount: $70,799,869 ($70.8M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-30
End Date: 2027-07-01
Contract Duration: 1,766 days
Daily Burn Rate: $40.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 2 AGAINST FA8735-22-D-B001 FOR PURCHASE OF RADIO FREQUENCY EQUIPMENT AND INSTALLATION.
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $70.8 million to L3 TECHNOLOGIES, INC. for work described as: DELIVERY ORDER 2 AGAINST FA8735-22-D-B001 FOR PURCHASE OF RADIO FREQUENCY EQUIPMENT AND INSTALLATION. Key points: 1. Significant award for radio frequency equipment and installation, highlighting a critical defense need. 2. Sole-source award to L3 Technologies, Inc. raises questions about price discovery and potential cost savings. 3. The contract duration extends over 4 years, indicating a long-term requirement. 4. The sector is dominated by a few large players, suggesting limited competition for specialized equipment.
Value Assessment
Rating: questionable
The contract value of $70.8 million for radio frequency equipment and installation is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
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 may result in higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition for this large contract could lead to suboptimal pricing, potentially costing taxpayers more than necessary.
Public Impact
Ensures critical radio frequency equipment and installation for the Department of Defense. Potential for higher costs due to the absence of competitive bidding. Supports a major defense contractor, L3 Technologies, Inc. Long-term contract (over 4 years) impacts future budget planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Fulfills critical defense equipment needs
- Long-term contract provides stability
Sector Analysis
The defense sector, particularly for specialized radio frequency equipment, often involves complex manufacturing and high barriers to entry. Spending benchmarks in this niche can vary significantly based on technological advancements and specific requirements.
Small Business Impact
This contract was awarded to L3 Technologies, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Accountability for the pricing and performance will be crucial throughout the contract's duration.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in procurement process
- High contract value without clear justification for sole-source
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.8 million to L3 TECHNOLOGIES, INC.. DELIVERY ORDER 2 AGAINST FA8735-22-D-B001 FOR PURCHASE OF RADIO FREQUENCY EQUIPMENT AND INSTALLATION.
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 $70.8 million.
What is the period of performance?
Start: 2022-08-30. End: 2027-07-01.
What specific factors justified the sole-source award for this radio frequency equipment and installation, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's unclear if the Department of Defense thoroughly explored all potential sources or if specific technological requirements uniquely positioned L3 Technologies, Inc. as the only viable option. This lack of transparency can obscure potential cost savings.
How does the per-unit cost of this equipment compare to industry benchmarks, given the lack of competition?
Assessing the per-unit cost is challenging without competitive bids. The absence of competition means there was no market pressure to establish a benchmark price. A thorough post-award analysis or comparison with similar, albeit potentially older or less advanced, systems procured competitively would be necessary to gauge value for money.
What is the projected return on investment or operational effectiveness gained from this $70.8 million expenditure?
The effectiveness of this investment hinges on the critical nature of the radio frequency equipment and its installation for national security operations. While the contract ensures the acquisition of necessary assets, quantifying the precise ROI is difficult without understanding the specific mission requirements it supports and the performance metrics established for the equipment.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 FEDERAL ST, CAMDEN, NJ, 08103
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: $70,799,869
Exercised Options: $70,799,869
Current Obligation: $70,799,869
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA873522DB001
IDV Type: IDC
Timeline
Start Date: 2022-08-30
Current End Date: 2027-07-01
Potential End Date: 2027-07-01 00:00:00
Last Modified: 2025-12-19
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