DoD Awards $89.4M for MIDS JTRS Terminals to L3 Technologies, Inc
Contract Overview
Contract Amount: $89,401,682 ($89.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-05-29
End Date: 2025-11-30
Contract Duration: 2,742 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS JTRS TERMINAL
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $89.4 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS TERMINAL Key points: 1. Significant contract value for specialized communication equipment. 2. Sole-source award to L3 Technologies, Inc. raises competition concerns. 3. Long contract duration (2018-2025) suggests ongoing program needs. 4. Focus on wireless communications equipment manufacturing.
Value Assessment
Rating: questionable
The total award amount of $89.4M over several years needs careful review. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced communication terminals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in the government paying a premium for these terminals, impacting overall taxpayer value.
Public Impact
Ensures critical communication capabilities for naval operations. Potential for higher costs due to lack of competitive bidding. Supports a single contractor for specialized defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential defense capability
- Firm fixed price contract
Sector Analysis
This contract falls within the defense sector, specifically for advanced wireless communications equipment. Spending benchmarks for similar sole-source procurements of specialized military hardware are often higher than competitive bids.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have participated in a competitive environment for this requirement.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential cost overruns. Regular reviews of performance and cost justification are recommended.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- Long contract duration may not reflect current market conditions.
- No indication of small business participation.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.4 million to L3 TECHNOLOGIES, INC.. MIDS JTRS TERMINAL
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 $89.4 million.
What is the period of performance?
Start: 2018-05-29. End: 2025-11-30.
What is the justification for the sole-source award, and could competition have been achieved?
The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. However, a thorough market research analysis should have been conducted to determine if other qualified vendors could have competed, especially for a contract of this magnitude and duration.
What are the risks associated with a sole-source award for advanced communication terminals?
The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Additionally, it can stifle innovation by limiting market entry for other companies and may lead to vendor lock-in, making future procurements more expensive and less flexible.
How does the firm fixed price contract structure impact value and risk for this sole-source award?
A firm fixed price contract shifts most of the risk to the contractor, which is generally favorable for the government. However, in a sole-source scenario, the 'fixed' price might still be higher than a competitively derived price. While it caps the government's cost exposure, it doesn't guarantee the best possible value without competition.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003914R0021
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
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: $89,401,682
Exercised Options: $89,401,682
Current Obligation: $89,401,682
Actual Outlays: $10,097,276
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $55,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0003915D0008
IDV Type: IDC
Timeline
Start Date: 2018-05-29
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-02-13
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