DoD awards $81.7M for MK 20 EOSS Production Units & Spares to L3 Technologies, Inc
Contract Overview
Contract Amount: $81,680,237 ($81.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-20
End Date: 2022-09-30
Contract Duration: 2,201 days
Daily Burn Rate: $37.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MK 20 EOSS PRODUCTION UNITS&SPARES
Place of Performance
Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060
Plain-Language Summary
Department of Defense obligated $81.7 million to L3 TECHNOLOGIES, INC. for work described as: MK 20 EOSS PRODUCTION UNITS&SPARES Key points: 1. Contract awarded to L3 Technologies, Inc. for $81.7 million. 2. The contract is for MK 20 EOSS Production Units & Spares. 3. This contract was not competed, raising potential concerns about price discovery. 4. The sector is Optical Instrument and Lens Manufacturing, with a PSC of 333314.
Value Assessment
Rating: questionable
The contract value of $81.7 million for production units and spares needs benchmarking against similar optical instrument contracts. Without competitive pricing, it's difficult to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition for an $81.7 million contract raises concerns about taxpayer value, as a more competitive process could have yielded cost savings.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The specific use and necessity of the MK 20 EOSS system are not detailed, impacting public understanding of the expenditure. Oversight is crucial to ensure the funds are used efficiently and effectively for the intended defense purpose.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency on system necessity
Positive Signals
- Definitive contract awarded
- Firm Fixed Price contract type
Sector Analysis
The Optical Instrument and Lens Manufacturing sector (NAICS 333314) is critical for defense applications. Benchmarking this contract's value against other defense optics procurements is essential, especially given the sole-source nature.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if small business participation was considered or possible.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure L3 Technologies, Inc. is delivering the required units and spares at a reasonable price. Accountability mechanisms should be in place to track performance and costs.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for reduced innovation due to sole-source award.
- Limited transparency regarding the system's specific capabilities and necessity.
- 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 $81.7 million to L3 TECHNOLOGIES, INC.. MK 20 EOSS PRODUCTION UNITS&SPARES
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 $81.7 million.
What is the period of performance?
Start: 2016-09-20. End: 2022-09-30.
What is the specific operational purpose and criticality of the MK 20 EOSS system to justify a sole-source award?
The specific operational purpose and criticality of the MK 20 EOSS system are not detailed in the provided data. Understanding its role in defense operations, such as surveillance, targeting, or navigation, would help justify a sole-source award and assess the necessity of the expenditure. Without this context, it's difficult to fully evaluate the value proposition.
What steps were taken to ensure fair and reasonable pricing in the absence of a competitive bidding process?
Given the sole-source nature of this contract, it is crucial to understand the government's process for ensuring fair and reasonable pricing. This typically involves detailed cost analysis, comparison with historical pricing for similar items, and negotiation with the contractor. The absence of competition means these steps are even more critical to prevent potential overspending of taxpayer funds.
How does the performance and cost of this contract compare to similar sole-source procurements within the Department of Defense?
Benchmarking this contract against similar sole-source procurements within the Department of Defense is essential for assessing its effectiveness and value. Without comparative data on performance metrics and cost per unit for comparable systems acquired under similar conditions, it is challenging to determine if $81.7 million represents an efficient use of resources. This analysis would highlight any potential outliers in pricing or delivery.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIBER OPTIC
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002415R5366
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
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: $82,806,659
Exercised Options: $81,855,088
Current Obligation: $81,680,237
Actual Outlays: $28,415,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-20
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-01-07
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