DoD's $83M WAM contract awarded to L3 Technologies, Inc. for wireless communications equipment
Contract Overview
Contract Amount: $83,076,663 ($83.1M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-30
End Date: 2026-03-31
Contract Duration: 2,070 days
Daily Burn Rate: $40.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: WAM
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $83.1 million to L3 TECHNOLOGIES, INC. for work described as: WAM Key points: 1. Significant contract value of $83M highlights substantial investment in wireless communications. 2. L3 Technologies, Inc. is a key player in the defense sector, indicating established capabilities. 3. The contract's duration of 2070 days suggests a long-term need for these services. 4. The 'UT' status code requires further investigation for specific sector implications.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee (CPIF) structure allows for shared savings and cost control, which is generally positive for value. Benchmarking against similar wireless communications equipment contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are encouraged to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures continued operational readiness for Department of the Navy communication systems. Supports advanced wireless technology development and deployment within the defense sector. Potential for job creation and economic activity related to manufacturing and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific Product Service Code (PSC) makes detailed benchmarking difficult.
- The 'UT' status code needs clarification to understand its full impact.
Positive Signals
- Awarded under full and open competition.
- CPIF contract type incentivizes cost efficiency.
- Long-term contract provides stability for critical systems.
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector for defense is crucial for maintaining technological superiority and operational effectiveness in communication systems.
Small Business Impact
While the prime contractor is L3 Technologies, Inc., the extent of small business participation through subcontracting is not detailed in the provided data. Further analysis would be needed to assess small business inclusion.
Oversight & Accountability
The contract's long duration and CPIF structure necessitate ongoing oversight to ensure cost control and performance targets are met. Regular reviews by the Department of the Navy are crucial for accountability.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if performance incentives are not effectively managed.
- Risk of technological obsolescence given the contract's long duration.
- Dependence on a single prime contractor for critical communication equipment.
- Need for clarity on the 'UT' status code and its implications.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.1 million to L3 TECHNOLOGIES, INC.. WAM
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 $83.1 million.
What is the period of performance?
Start: 2020-07-30. End: 2026-03-31.
What is the specific nature of the wireless communications equipment being procured under this contract?
The provided data indicates the contract is for 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' under NAICS code 334220. However, the precise type of equipment, such as radios, transceivers, or network infrastructure components, is not specified. Understanding the exact equipment is key to assessing its technological relevance and potential obsolescence risks.
How does the awarded price compare to industry benchmarks for similar wireless communication systems?
Benchmarking the $83 million contract value against similar systems is challenging without more specific details on the equipment's capabilities and quantities. The Cost Plus Incentive Fee (CPIF) structure aims to control costs, but the final price will depend on performance and efficiency. A detailed comparison would require access to market research reports or data on comparable government or commercial procurements.
What are the key performance indicators (KPIs) and metrics used to evaluate the contractor's performance under this CPIF contract?
The effectiveness of this contract hinges on clearly defined Key Performance Indicators (KPIs) and metrics within the Cost Plus Incentive Fee (CPIF) agreement. These metrics likely relate to delivery timelines, equipment reliability, technical performance standards, and cost control. The Department of the Navy's oversight process would track these KPIs to ensure the contractor meets objectives and to determine incentive fee payouts.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003919R0009
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2 FEDERAL ST, CAMDEN, NJ, 08102
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: $83,076,663
Exercised Options: $83,076,663
Current Obligation: $83,076,663
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0065
IDV Type: IDC
Timeline
Start Date: 2020-07-30
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-08
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