DoD Awards L3 Technologies $49M for Engineering Services (EOSS/MK 160) Over 9 Years
Contract Overview
Contract Amount: $49,146,118 ($49.1M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-08-01
End Date: 2014-01-21
Contract Duration: 3,095 days
Daily Burn Rate: $15.9K/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: ENGINEERING SERVIECS -EOSS/MK 160
Place of Performance
Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060
Plain-Language Summary
Department of Defense obligated $49.1 million to L3 TECHNOLOGIES, INC. for work described as: ENGINEERING SERVIECS -EOSS/MK 160 Key points: 1. Significant contract value of $49.1M awarded to L3 Technologies. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific need or prior engagement. 3. Contract duration of 3095 days (over 8 years) indicates a long-term requirement. 4. The sector is Optical Instrument and Lens Manufacturing, a specialized area within defense.
Value Assessment
Rating: fair
The total award of $49.1M over nearly 9 years averages to approximately $5.46M annually. Without specific per-unit data or comparable contracts, assessing value is difficult. However, the long duration suggests a sustained need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This implies that while competition was sought, certain sources may have been excluded initially, potentially impacting the breadth of price discovery.
Taxpayer Impact: The long-term nature of this contract means taxpayers are committed to funding these engineering services over an extended period. The specific value suggests a substantial investment.
Public Impact
Taxpayers are funding specialized engineering services for defense optical instruments. The long contract duration suggests a stable, ongoing need within the Department of Defense. The exclusion of sources in the competition method warrants further investigation into the rationale.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition method details require clarification.
- Lack of detailed per-unit cost data hinders value assessment.
Positive Signals
- Long-term contract indicates sustained need and potential for stable service delivery.
- Firm Fixed Price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the Optical Instrument and Lens Manufacturing sector, a niche area supporting defense capabilities. Spending in this sector is often driven by specific technological requirements and national security priorities.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor, L3 Technologies, is a large corporation, suggesting the scope of work was likely beyond the capacity of most small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the long duration and 'exclusion of sources' aspect warrant continued monitoring for accountability and adherence to procurement regulations.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for reduced competition due to source exclusion.
- Long contract duration may lead to scope creep or evolving requirements.
- Lack of detailed cost breakdown hinders thorough value analysis.
- No indication of small business participation.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.1 million to L3 TECHNOLOGIES, INC.. ENGINEERING SERVIECS -EOSS/MK 160
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 $49.1 million.
What is the period of performance?
Start: 2005-08-01. End: 2014-01-21.
What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and did this exclusion impact the final price?
The rationale for excluding sources typically relates to specific technical requirements, prior performance, or unique capabilities needed for the contract. Without further documentation, it's difficult to ascertain the exact reasons. However, limiting the pool of potential bidders can sometimes lead to higher prices if competition is significantly reduced, suggesting a potential impact on price discovery and taxpayer value.
How does the average annual cost of $5.46M compare to industry benchmarks for similar engineering services in optical instrument manufacturing?
Benchmarking this contract's average annual cost of $5.46M requires detailed comparison with similar contracts for specialized engineering services in optical instrument manufacturing. Factors like the complexity of the technology, required expertise, and specific deliverables are crucial. Without access to proprietary cost data or detailed market analysis for this niche sector, a definitive comparison is challenging, making the 'fair' value assessment appropriate.
What are the key performance indicators (KPIs) for this contract, and how effectively has L3 Technologies met them over the contract's duration?
Key performance indicators (KPIs) for engineering services contracts typically include technical performance, delivery schedules, quality standards, and cost control. Effective oversight by the Defense Contract Management Agency (DCMA) should involve tracking these KPIs. Understanding the contractor's performance against these metrics is crucial for assessing the overall effectiveness of the contract and ensuring taxpayer funds are used efficiently for the intended defense capabilities.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 347 KING ST, NORTHAMPTON, MA, 01060
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,421,231
Exercised Options: $49,146,118
Current Obligation: $49,146,118
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-08-01
Current End Date: 2014-01-21
Potential End Date: 2014-01-21 00:00:00
Last Modified: 2017-02-14
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