DoD awards $164M for HawkLink Systems, including AN/SRQ-4 and AN/ARQ radio terminals
Contract Overview
Contract Amount: $164,283,693 ($164.3M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-11
End Date: 2019-01-31
Contract Duration: 2,333 days
Daily Burn Rate: $70.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON DATA LINK (CDL) HAWKLINK SYSTEMS: THE AN/SRQ-4 (KU) RADIO TERMINAL SETS (RTSS) FOR SHIP SMALL SURFACE COMBATANTS, AND THE AN/ARQ RTS FOR THE MH-60R AIRCRAFT
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $164.3 million to L3 TECHNOLOGIES, INC. for work described as: COMMON DATA LINK (CDL) HAWKLINK SYSTEMS: THE AN/SRQ-4 (KU) RADIO TERMINAL SETS (RTSS) FOR SHIP SMALL SURFACE COMBATANTS, AND THE AN/ARQ RTS FOR THE MH-60R AIRCRAFT Key points: 1. Contract awarded to L3 Technologies, Inc. for critical communication systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 2333 days, indicating a long-term need. 4. The total award value is $164,283,693. 5. This spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: good
The contract was awarded under a firm fixed price, which helps control costs. Benchmarking against similar complex electronic systems contracts is needed for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to better price discovery and potentially lower costs for the government. The use of a definitive contract suggests a well-defined scope.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value for the funds expended on essential defense communication systems.
Public Impact
Enhances communication capabilities for Navy surface combatants and MH-60R aircraft. Supports critical intelligence, surveillance, and reconnaissance (ISR) missions. Ensures interoperability and operational effectiveness of naval platforms. Contributes to the modernization of naval communication infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value analysis challenging.
- Contract duration is lengthy, requiring ongoing monitoring for performance and cost overruns.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Awarded to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a significant part of the broader aerospace and defense industry. Spending benchmarks for similar complex electronic systems are typically in the tens to hundreds of millions.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were mandated or pursued.
Oversight & Accountability
The use of a definitive contract and full and open competition suggests a structured procurement process. Ongoing oversight would focus on contract performance, delivery schedules, and adherence to the fixed price.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for technological obsolescence due to long contract duration.
- Lack of detailed per-unit cost data hinders precise value assessment.
- No small business participation indicated in the primary award.
- Reliance on a single contractor for a critical system component.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ut, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $164.3 million to L3 TECHNOLOGIES, INC.. COMMON DATA LINK (CDL) HAWKLINK SYSTEMS: THE AN/SRQ-4 (KU) RADIO TERMINAL SETS (RTSS) FOR SHIP SMALL SURFACE COMBATANTS, AND THE AN/ARQ RTS FOR THE MH-60R AIRCRAFT
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 Navy).
What is the total obligated amount?
The obligated amount is $164.3 million.
What is the period of performance?
Start: 2012-09-11. End: 2019-01-31.
What is the specific performance capability improvement expected from these HawkLink Systems compared to previous generations?
The HawkLink Systems, including the AN/SRQ-4 and AN/ARQ radio terminal sets, are designed to provide enhanced data link capabilities for ship small surface combatants and MH-60R aircraft. This likely translates to improved bandwidth, reduced latency, and potentially more secure communication channels, crucial for modern naval operations involving intelligence, surveillance, and reconnaissance (ISR) data transmission.
Are there any identified risks associated with the long-term sustainment and potential obsolescence of these specific radio terminal sets?
The 2333-day contract duration presents a risk of technological obsolescence, especially in rapidly evolving communication systems. While L3 Technologies is a reputable contractor, the government must ensure robust sustainment plans are in place and monitor for emerging technologies that could offer superior performance or lower lifecycle costs, potentially necessitating future contract modifications or replacements.
How does the firm fixed price structure mitigate potential cost overruns given the complexity of the systems?
The firm fixed price (FFP) contract structure places the primary cost risk on the contractor, L3 Technologies. This incentivizes efficient performance and cost control, as any overruns beyond the agreed-upon price are absorbed by the contractor. However, the government must ensure the initial price was set appropriately based on thorough cost analysis and market research to avoid underpricing that could lead to quality compromises.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001911R0041
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $175,156,993
Exercised Options: $164,283,693
Current Obligation: $164,283,693
Subaward Activity
Number of Subawards: 279
Total Subaward Amount: $50,545,720
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-11
Current End Date: 2019-01-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2021-11-19
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