DoD Awards $73M for Universal Modular Masts and Engineering Services to L3 Technologies, Inc
Contract Overview
Contract Amount: $73,105,262 ($73.1M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-06-19
End Date: 2021-11-18
Contract Duration: 2,344 days
Daily Burn Rate: $31.2K/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 $73.1 million to L3 TECHNOLOGIES, INC. for work described as: UNIVERSAL MODULAR MASTS AND ENGINEERING SERVICES Key points: 1. Significant award for specialized defense systems. 2. Sole-source award raises questions about competition. 3. Long contract duration (2344 days) may impact price. 4. Focus on navigation and guidance systems.
Value Assessment
Rating: fair
The award value of $73.1M over approximately 6.5 years suggests a substantial investment. Without comparable contracts for similar modular mast systems and engineering services, a precise pricing assessment is difficult. However, the duration and sole-source nature warrant scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this significant contract may result in a higher cost to taxpayers than if it had been competitively bid.
Public Impact
Impacts military navigation and detection capabilities. Potential for extended reliance on a single provider. Raises concerns about future procurement strategies for similar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Essential defense system procurement
- Firm fixed price contract
Sector Analysis
This contract falls within the defense sector, specifically related to navigation and guidance systems. Spending in this area is critical for national security, but competitive procurement is generally preferred to ensure value for money.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA). Oversight would focus on contract performance, delivery, and adherence to terms, especially given the sole-source nature.
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 pricing due to sole-source award
- Long contract duration may not reflect current market conditions
- Limited visibility into alternative solutions
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 $73.1 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 $73.1 million.
What is the period of performance?
Start: 2015-06-19. End: 2021-11-18.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
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 specific documentation, it's unclear if alternatives were explored. This lack of competition limits the government's ability to secure the best possible price and value.
How does the firm fixed price structure mitigate risk given the long contract duration and sole-source nature?
A firm fixed price (FFP) contract shifts most of the cost risk to the contractor, providing budget certainty for the government. However, with a sole-source award and a long duration (2344 days), the initial price negotiation is critical. If the price was not set competitively, the FFP may not represent the best value, even though it caps potential cost overruns.
What is the long-term strategic impact of awarding such a significant contract solely to L3 Technologies, Inc.?
Sole-source awards can foster deep expertise and long-term partnerships but also risk creating vendor lock-in and stifling innovation from potential competitors. The government should ensure robust performance monitoring and consider future strategies to introduce competition or explore alternative solutions to maintain technological advantage and cost-effectiveness.
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: N0002413R6279
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: $101,229,026
Exercised Options: $101,229,026
Current Obligation: $73,105,262
Actual Outlays: $5,661,480
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-06-19
Current End Date: 2021-11-18
Potential End Date: 2021-11-18 00:00:00
Last Modified: 2021-12-20
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