DoD Awards L3 Technologies $265M for Submarine Photonics Masts, Boosting Naval ISR Capabilities
Contract Overview
Contract Amount: $265,300,239 ($265.3M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-02
End Date: 2028-08-30
Contract Duration: 2,981 days
Daily Burn Rate: $89.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: DESIGN, DEVELOPMENT, TESTING, SYSTEM SUPPORT, AND PRODUCTION OF SUBMARINE PHOTONICS MASTS
Place of Performance
Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060
Plain-Language Summary
Department of Defense obligated $265.3 million to L3 TECHNOLOGIES, INC. for work described as: DESIGN, DEVELOPMENT, TESTING, SYSTEM SUPPORT, AND PRODUCTION OF SUBMARINE PHOTONICS MASTS Key points: 1. Significant investment in advanced naval intelligence, surveillance, and reconnaissance (ISR) technology. 2. L3 Technologies, a major defense contractor, secures a substantial contract. 3. Potential for long-term system support and upgrades over the contract's lifespan. 4. Fixed-price incentive contract aims to balance cost control with performance incentives.
Value Assessment
Rating: good
The contract value of $265.3M appears reasonable for the complex, high-tech nature of submarine photonics masts. Benchmarking against similar advanced sensor systems for naval platforms suggests this pricing is within expected ranges, though detailed cost breakdowns would be needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process that likely drove price discovery. This method is generally expected to yield fair and reasonable pricing for the government.
Taxpayer Impact: The competitive award process suggests taxpayers are likely receiving value for money, with the investment supporting critical national security capabilities.
Public Impact
Enhances submarine's ability to gather intelligence without surfacing. Improves situational awareness for naval operations. Supports advanced sensor technology development for the U.S. Navy. Contributes to the technological superiority of U.S. submarine fleet. Potential for job creation in specialized manufacturing and engineering sectors.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Fixed-price incentive contracts can lead to cost overruns if performance targets are not met efficiently.
- Long-term reliance on a single supplier for critical components.
- Potential for scope creep in system development and testing phases.
Positive Signals
- Awarded under full and open competition.
- Utilizes fixed-price incentive structure to manage costs.
- Supports critical defense modernization efforts.
- Long contract duration allows for stable production and support.
Sector Analysis
This contract falls within the Defense sector, specifically in advanced electronics and systems manufacturing. Spending benchmarks for similar complex defense systems suggest this award is in line with market rates for cutting-edge naval technology.
Small Business Impact
While the prime contractor is L3 Technologies, Inc., a large entity, the contract details do not specify subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation in this award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight will be crucial to ensure performance, cost control, and adherence to contract terms, especially given the fixed-price incentive structure.
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
- Potential for cost overruns due to incentive structure.
- Dependence on a single large contractor.
- Technological obsolescence risk over the system's lifecycle.
- Complexity of integrating new technology into existing submarine platforms.
- Ensuring adequate cybersecurity for advanced sensor systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $265.3 million to L3 TECHNOLOGIES, INC.. DESIGN, DEVELOPMENT, TESTING, SYSTEM SUPPORT, AND PRODUCTION OF SUBMARINE PHOTONICS MASTS
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 $265.3 million.
What is the period of performance?
Start: 2020-07-02. End: 2028-08-30.
What specific performance metrics are tied to the incentive portion of this contract, and how are they measured?
The incentive structure likely ties additional profit to achieving specific performance milestones related to the photonics masts' capabilities, such as resolution, detection range, or operational reliability under various conditions. The contract documentation would detail these metrics and the methodology for measuring success, ensuring the contractor is motivated to deliver superior performance while managing costs effectively.
What are the long-term sustainment and upgrade plans for these photonics masts post-production?
The contract's duration extending to 2028 suggests provisions for initial system support. However, long-term sustainment and future upgrade strategies are typically addressed in separate support contracts or program directives. Understanding these future plans is crucial for assessing the total lifecycle cost and ensuring the technology remains relevant against evolving threats.
How does the technological advancement of these photonics masts compare to international counterparts?
The development of submarine photonics masts represents a significant leap in naval ISR technology, potentially offering advantages in stealth and sensor capability over traditional periscopes. While specific international comparisons are often classified, the U.S. Navy's investment signals a strategic effort to maintain technological superiority in submarine warfare capabilities.
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: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N0002417R6249
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $268,839,656
Exercised Options: $268,839,656
Current Obligation: $265,300,239
Subaward Activity
Number of Subawards: 83
Total Subaward Amount: $38,577,425
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-07-02
Current End Date: 2028-08-30
Potential End Date: 2028-08-30 00:00:00
Last Modified: 2025-11-24
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