DoD's $107.8M contract for AN/SRQ-4S maintenance modules awarded to L3 Technologies, Inc. raises questions
Contract Overview
Contract Amount: $107,805,129 ($107.8M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-02-26
End Date: 2025-09-22
Contract Duration: 2,765 days
Daily Burn Rate: $39.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AN/SRQ-4S, MAINTENANCE ASSISTANCE MODULES, ON-BOARD REPAIR PARTS, AUTOLOADERS AND NON-RECURRING ENGINEERING
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $107.8 million to L3 TECHNOLOGIES, INC. for work described as: AN/SRQ-4S, MAINTENANCE ASSISTANCE MODULES, ON-BOARD REPAIR PARTS, AUTOLOADERS AND NON-RECURRING ENGINEERING Key points: 1. Contract awarded to L3 Technologies, Inc. for $107.8M. 2. Focuses on maintenance modules, repair parts, and autoloaders for AN/SRQ-4S. 3. Competition method was 'Full and Open', but contract type is 'Definitive'. 4. Sector is Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The $107.8M contract value is significant. Without comparable contracts or detailed cost breakdowns, assessing its value against industry benchmarks is difficult. The firm fixed-price structure aims for cost certainty, but the lack of detailed pricing information hinders a thorough value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', suggesting multiple vendors could bid. However, the 'Definitive Contract' award type, while common, can sometimes limit flexibility and price discovery compared to other contract types if not managed carefully.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment maintenance. The effectiveness of the competition and the final price will determine the overall taxpayer impact.
Public Impact
Ensures operational readiness of AN/SRQ-4S systems through provision of essential parts and maintenance. Supports the Department of the Navy's technological infrastructure and sustainment capabilities. Potential for long-term reliance on L3 Technologies for ongoing support and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for a large contract.
- Definitive contract type may limit price discovery.
- No indication of small business participation.
Positive Signals
- Full and Open competition was utilized.
- Firm Fixed Price contract aims for cost certainty.
- Supports critical defense systems.
Sector Analysis
The contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector for defense applications is often driven by technological advancements and sustainment needs for complex communication systems.
Small Business Impact
The provided data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The 'Definitive Contract' award suggests a defined scope, but ongoing oversight is crucial to ensure L3 Technologies meets all performance requirements and that the pricing remains fair throughout the contract's duration.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for cost overruns with definitive contract.
- No clear small business participation noted.
- Long-term sustainment dependency.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.8 million to L3 TECHNOLOGIES, INC.. AN/SRQ-4S, MAINTENANCE ASSISTANCE MODULES, ON-BOARD REPAIR PARTS, AUTOLOADERS AND NON-RECURRING ENGINEERING
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 $107.8 million.
What is the period of performance?
Start: 2018-02-26. End: 2025-09-22.
What is the breakdown of costs for maintenance modules, on-board repair parts, and non-recurring engineering?
A detailed cost breakdown is essential for a comprehensive value assessment. Understanding the allocation of the $107.8M across these categories would reveal where the majority of funds are directed and allow for better benchmarking against industry standards for similar components and engineering services.
What specific performance metrics are being tracked to ensure the effectiveness of the maintenance and repair parts provided?
Effectiveness is measured by the reliability and availability of the AN/SRQ-4S systems. Key metrics likely include Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and the successful completion rate of maintenance tasks. Ensuring these metrics are met justifies the contract's value.
What is the risk associated with the 'Definitive Contract' award type in terms of potential cost overruns or scope creep?
Definitive contracts, while providing a clear path, carry a risk of cost overruns if initial estimates are inaccurate or if unforeseen technical challenges arise. Scope creep is also a concern if contract modifications are not rigorously managed, potentially increasing the total expenditure beyond the initial $107.8M.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001916R3001
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: $109,340,420
Exercised Options: $108,066,752
Current Obligation: $107,805,129
Actual Outlays: $9,075,115
Subaward Activity
Number of Subawards: 217
Total Subaward Amount: $25,972,008
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-02-26
Current End Date: 2025-09-22
Potential End Date: 2025-09-22 00:00:00
Last Modified: 2025-04-03
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