DoD awards $42.6M for Universal Modular Masts and Engineering Services to L3 Technologies, Inc
Contract Overview
Contract Amount: $42,657,522 ($42.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-12-07
End Date: 2016-07-15
Contract Duration: 1,316 days
Daily Burn Rate: $32.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNIVERSAL MODULAR MASTS AND ENGINEERING SERVICES
Place of Performance
Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060
Plain-Language Summary
Department of Defense obligated $42.7 million to L3 TECHNOLOGIES, INC. for work described as: UNIVERSAL MODULAR MASTS AND ENGINEERING SERVICES Key points: 1. Contract awarded to L3 Technologies, Inc. for $42.6M. 2. The contract is for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. 3. Awarded by the Department of Defense, managed by DCMA. 4. Contract duration was 1316 days. 5. This was a definitive contract with a firm fixed price.
Value Assessment
Rating: fair
The contract value of $42.6M over 1316 days suggests a moderate annual spend. Without specific unit details or comparable contract data, a precise pricing assessment is difficult, but the firm fixed price indicates a defined cost structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for these specialized masts and engineering services.
Public Impact
Supports critical defense navigation and guidance systems. Ensures availability of specialized manufacturing and engineering expertise. Impacts military readiness and operational capabilities. Funds a significant contract for a large defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Firm fixed price contract
- Long-term award providing stability
Sector Analysis
The defense sector often involves complex, specialized systems like navigation and guidance instruments. Spending benchmarks for such niche manufacturing and engineering services can vary widely based on technological sophistication and required expertise.
Small Business Impact
The contract was awarded to L3 Technologies, Inc., a large corporation, and there is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. However, the sole-source nature raises questions about the effectiveness of oversight in achieving the best value.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Limited transparency in pricing
- Risk of vendor lock-in
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.7 million to L3 TECHNOLOGIES, INC.. UNIVERSAL MODULAR MASTS AND ENGINEERING SERVICES
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 $42.7 million.
What is the period of performance?
Start: 2012-12-07. End: 2016-07-15.
What was the justification for not competing this significant contract, and what specific capabilities did L3 Technologies possess that warranted a sole-source award?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without the specific justification document, it's impossible to detail L3 Technologies' unique position. However, such awards warrant scrutiny to ensure they are truly necessary and not a result of convenience or lack of market research.
How does the per-unit cost of these universal modular masts and engineering services compare to industry benchmarks, especially given the lack of competitive bidding?
Assessing the per-unit cost against industry benchmarks is challenging without specific unit data and comparable contract information. Sole-source contracts inherently lack the price discovery mechanism of competition, making it difficult to determine if the price paid was fair and reasonable. A post-award review or comparison with similar, albeit potentially different, systems might offer some insight, but definitive conclusions are hard to draw.
What is the long-term strategic value of this sole-source contract for the Department of Defense, and are there plans to introduce competition for future needs in this area?
The long-term strategic value likely lies in securing specialized, potentially critical, components or services for defense systems. However, relying on a sole-source provider can create vendor lock-in and limit future innovation or cost savings. The DoD should actively explore opportunities to foster competition or develop alternative sources to mitigate these risks and ensure long-term cost-effectiveness and technological advancement.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002412R6229
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 50 PRINCE ST, NORTHAMPTON, MA, 01060
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: $55,845,309
Exercised Options: $55,845,309
Current Obligation: $42,657,522
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-07
Current End Date: 2016-07-15
Potential End Date: 2016-07-15 00:00:00
Last Modified: 2019-09-09
More Contracts from L3 Technologies, Inc.
- 63 Each of the Following Hardware Items for the Bradley Fighting Vehicle System (bfvs): Thor Hmpt 800HP Reman Transmission, NSN 2520-01-626-5061 TCM Electronic Assembly, NSN 2520-01-627-6468 Shift Tower, NSN 2520-01-465-5184 TEC Cable, NSN 6150-01-631-6134 — $456.5M (Department of Defense)
- Purchase of 538 EA E-Rovers — $401.1M (Department of Defense)
- Federal Contract — $395.7M (Department of Defense)
- CEC System Production and Repair — $315.9M (Department of Defense)
- Undersea Warfare Training Range (uswtr) Program Requirements Will Provide the Capability for Undersea Warfare (USW) Training and Assessment in Shallow Water and Deep Water Under Adverse Conditions for AIR, Surface, and Subsurface Forces — $267.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)