Naval Sea Systems Command awarded $49.2M for optical sighting and ranging equipment, with L3 Technologies as the prime contractor

Contract Overview

Contract Amount: $49,212,343 ($49.2M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-02-22

End Date: 2010-12-31

Contract Duration: 3,234 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200208!023055!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4032 !A!N! !N! !20020222!20050222!041491895!041491895!024744476!N!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPSHIRE !MASS !+000012404997!N!N!000000000000!1240!OPTICAL SIGHTING AND RANGING EQUIPMENT !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !333314!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!001!B! !A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $49.2 million to L3 TECHNOLOGIES, INC. for work described as: 200208!023055!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4032 !A!N! !N! !20020222!20050222!041491895!041491895!024744476!N!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPS… Key points: 1. Contract value of $49.2M for optical sighting and ranging equipment. 2. Awarded by the Naval Sea Systems Command, indicating a focus on naval defense capabilities. 3. The contract was competed under full and open competition. 4. The period of performance spans from February 2002 to December 2010. 5. The product service code (PSC) is 333314, related to optical instrument and lens manufacturing. 6. The contract type is a firm fixed price definitive contract. 7. The prime contractor is L3 Technologies, Inc.

Value Assessment

Rating: fair

The contract value of $49.2 million for optical sighting and ranging equipment over an 8-year period (2002-2010) appears to be within a reasonable range for specialized defense hardware. However, without specific details on the quantity and technical specifications of the equipment, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for advanced optical systems would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The data indicates one award, but the competition level implies a robust bidding process that should have driven competitive pricing. The specific number of bidders is not provided, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation, ensuring that the government receives the best value for its investment.

Public Impact

Naval forces benefit from advanced optical sighting and ranging equipment, enhancing operational capabilities. The contract supports the development and procurement of critical defense technology. The geographic impact is primarily within the United States, with potential deployment on naval vessels globally. The contract likely supports a specialized workforce in the defense manufacturing sector, particularly in optical and precision engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered equipment.
The long performance period (2002-2010) raises questions about the technology's obsolescence by the end of the contract.
Limited information on the specific type and quantity of optical sighting and ranging equipment procured.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed price contract type helps control costs and provides budget certainty.
Prime contractor L3 Technologies is a known entity in the defense sector.

Sector Analysis

This contract falls within the Defense sector, specifically related to the manufacturing of optical instruments and lenses. The market for such specialized defense equipment is characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks would typically involve other major defense procurements for sensor and targeting systems, often involving multi-year, high-value contracts.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific contract is not discernible. Further investigation into subcontracting opportunities awarded by L3 Technologies would be needed to assess any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the firm fixed price terms and delivery schedules. Transparency is generally maintained through contract award databases, though specific performance details may be classified or limited.

Related Government Programs

Naval Ship Systems
Defense Procurement
Optical and Fire Control Systems
Advanced Manufacturing
Military Optics

Risk Flags

Long performance period may lead to technology obsolescence.
Lack of detailed performance metrics limits assessment.
Potential for classified technical specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.2 million to L3 TECHNOLOGIES, INC.. 200208!023055!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002402C4032 !A!N! !N! !20020222!20050222!041491895!041491895!024744476!N!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPSHIRE !MASS !+000012404997!N!N!000000000000!1240!OPTICAL SIGHTING AND RANGING EQUIPMENT !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !333314!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $49.2 million.

What is the period of performance?

Start: 2002-02-22. End: 2010-12-31.

What was the specific type and quantity of optical sighting and ranging equipment procured under this contract?

The specific type and quantity of optical sighting and ranging equipment procured under this contract are not detailed in the provided data. The Product Service Code (PSC) 333314 indicates 'Optical Instrument and Lens Manufacturing,' and the description mentions 'OPTICAL SIGHTING AND RANGING EQUIPMENT.' However, the exact models, technical specifications, and the number of units purchased are not publicly disclosed in this record. This level of detail is often considered sensitive for national security reasons or is contained within the detailed contract statements of work, which are not accessible here. Understanding the specifics would be crucial for a thorough technical and value assessment.

How does the $49.2 million contract value compare to similar procurements for optical sighting and ranging equipment by the Navy or other defense agencies?

Comparing the $49.2 million contract value requires access to a broader dataset of similar procurements. However, for a contract spanning approximately 8 years (February 2002 to December 2010) for specialized naval equipment, this value is not inherently excessive, especially considering the high research, development, and manufacturing costs associated with advanced defense optics. Similar contracts for targeting pods, advanced periscopes, or fire control systems can range from tens to hundreds of millions of dollars depending on complexity, quantity, and technological sophistication. Without specific technical details of the equipment procured here, a precise benchmark is difficult, but the value appears plausible within the context of major defense acquisitions.

What were the key performance indicators (KPIs) or success metrics for this contract, and how did the contractor perform against them?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, such metrics would be detailed in the contract's Statement of Work (SOW) and would cover aspects like technical performance, reliability, delivery schedules, and quality standards. For a firm fixed price contract, adherence to the agreed-upon specifications and delivery timelines are primary indicators of success. The data does not offer insights into whether L3 Technologies met these unstated requirements or if there were any contract modifications, disputes, or penalties related to performance. A full performance assessment would require access to contract administration records.

What is the track record of L3 Technologies, Inc. in fulfilling similar defense contracts, particularly for optical systems?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a long and extensive track record in the defense industry, including significant experience with optical systems, sensors, and related technologies. They have historically been a major supplier of various defense electronics and systems, including electro-optical/infrared (EO/IR) systems, targeting systems, and communication equipment for military applications. Their involvement in numerous large-scale defense contracts suggests a capacity to handle complex procurements like the one from Naval Sea Systems Command. While specific performance details for every contract are not always public, their sustained presence and role as a prime contractor in the defense sector indicate a generally established capability in delivering such equipment.

Were there any significant risks identified or mitigation strategies employed during the performance of this contract?

The provided data does not explicitly detail any specific risks identified or mitigation strategies employed during the performance of this contract. However, for a defense contract involving advanced technology and a long performance period, potential risks could include technological obsolescence, supply chain disruptions, cost overruns (though mitigated by FFP), and performance issues. Given the firm fixed price nature, the primary risk for the government is non-performance or substandard delivery, while the contractor bears the risk of cost overruns. Without access to contract administration files or Inspector General reports, it's impossible to ascertain the specific risks encountered or how they were managed.

How has spending on optical sighting and ranging equipment by the Department of Defense evolved since this contract was awarded?

Spending on optical sighting and ranging equipment by the Department of Defense has likely evolved significantly since this contract, which concluded in late 2010. Post-2010, advancements in technology, such as increased sensor resolution, artificial intelligence for target recognition, miniaturization, and network-centric capabilities, have driven new requirements and procurements. Defense budgets have also fluctuated, influencing overall spending levels. While specific aggregate spending figures for 'optical sighting and ranging equipment' are not readily available as a distinct category, it's reasonable to assume that spending has continued, potentially shifting towards more integrated systems, networked sensors, and technologies supporting unmanned platforms and enhanced situational awareness, reflecting broader trends in military modernization.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 347 KING ST, NORTHAMPTON, MA, 01060

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline