DoD's $64.8M Bomb Fuze Contract Awarded to L3Harris Amidst Concerns of Limited Competition
Contract Overview
Contract Amount: $64,850,869 ($64.9M)
Contractor: L3harris Fuzing and Ordnance Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-24
End Date: 2019-04-30
Contract Duration: 1,679 days
Daily Burn Rate: $38.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMU-139C/B ELECTRONIC BOMB FUZES AND ACCESSORY KITS
Place of Performance
Location: CINCINNATI, CLERMONT County, OHIO, 45245
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $64.9 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC. for work described as: FMU-139C/B ELECTRONIC BOMB FUZES AND ACCESSORY KITS Key points: 1. The Department of Defense awarded a $64.8 million contract for electronic bomb fuzes and accessory kits. 2. L3Harris Fuzing and Ordnance Systems, Inc. was the sole awardee, raising questions about competitive pricing. 3. The contract utilized 'Full and Open Competition After Exclusion of Sources,' a complex designation. 4. The sector is Defense, specifically ordnance manufacturing, with a significant contract value. 5. The lack of clear competition could pose a risk to achieving best value for taxpayers.
Value Assessment
Rating: questionable
The contract value of $64.8 million for bomb fuzes and accessory kits appears substantial. Without clear benchmarks or comparable contract data, assessing the pricing against similar procurements is difficult. The limited competition structure further complicates a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for limiting the pool of potential bidders. This method can restrict price discovery and potentially lead to higher costs compared to broad-based competition.
Taxpayer Impact: The limited competition structure raises concerns about whether taxpayers received the best possible price for these critical defense components.
Public Impact
Taxpayers may be overpaying due to restricted competition for essential military equipment. The Department of Defense relies on advanced ordnance, making contract oversight crucial. This contract highlights the complexities of defense procurement and the need for robust competition. The exclusion of sources could impact the availability of alternative, potentially more cost-effective, solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear pricing benchmarks
- Potential for inflated costs
Positive Signals
- Awarded to a known defense contractor
- Contract addresses a specific military need
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of ordnance and accessories. Spending in this area is critical for national security, but often involves complex supply chains and specialized manufacturing capabilities, which can influence competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). The prime contractor, L3Harris, is a large corporation, suggesting that opportunities for small business participation may have been limited or subcontracted.
Oversight & Accountability
The contract's designation 'Full and Open Competition After Exclusion of Sources' suggests a specific justification was provided, but further oversight is needed to ensure this exclusion was warranted and that the pricing reflects fair market value. Accountability rests with the Department of the Navy.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparent pricing benchmarks.
- Potential for reduced innovation due to restricted bidder pool.
- Contract awarded after exclusion of sources requires further justification.
- No small business participation noted.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.9 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC.. FMU-139C/B ELECTRONIC BOMB FUZES AND ACCESSORY KITS
Who is the contractor on this award?
The obligated recipient is L3HARRIS FUZING AND ORDNANCE SYSTEMS, 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 $64.9 million.
What is the period of performance?
Start: 2014-09-24. End: 2019-04-30.
What was the specific justification for excluding sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did it impact the final price?
The justification for excluding sources is critical to understanding the procurement's integrity. If the exclusion was based on unique technical requirements or proprietary technology, it might explain the limited competition. However, without this information, it's difficult to ascertain if the price achieved reflects fair market value or if the exclusion inadvertently inflated costs by limiting competitive pressure.
How does the per-unit cost of these bomb fuzes compare to similar systems procured through broader competitive processes by other defense agencies or allies?
Benchmarking the per-unit cost against similar bomb fuzes procured through more open competition is essential for assessing value. If this contract's pricing is significantly higher, it indicates a potential issue with price discovery and taxpayer impact. A detailed cost analysis comparing this award to publicly available data or intelligence on similar systems is necessary.
What measures are in place to ensure the effectiveness and reliability of these bomb fuzes, given the specialized nature of the product and the limited competitive landscape?
Ensuring the effectiveness of critical defense components like bomb fuzes is paramount, regardless of the procurement method. Robust testing, quality assurance protocols, and post-award performance monitoring by the Department of the Navy are crucial. The limited competition necessitates heightened scrutiny to confirm the product meets stringent military specifications and operational requirements.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001913R0065
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3 Technologies, Inc. (UEI: 008898884)
Address: 3975 MC MANN RD, CINCINNATI, OH, 45245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $64,850,869
Exercised Options: $64,850,869
Current Obligation: $64,850,869
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-24
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2019-03-21
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