DoD awards $100.7M for MIDS JTRS spares, with L3 Technologies Inc. as prime contractor

Contract Overview

Contract Amount: $100,718,720 ($100.7M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2027-01-30

Contract Duration: 2,039 days

Daily Burn Rate: $49.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS SPARES

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $100.7 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS SPARES Key points: 1. Contract value of $100.7 million for spare parts indicates significant sustainment needs for the MIDS JTRS program. 2. The contract was awarded under full and open competition, suggesting a competitive environment for these specialized parts. 3. The duration of the contract (over 5 years) points to long-term program support requirements. 4. The fixed-price contract type aims to control costs and provide predictability for the government. 5. The prime contractor, L3 Technologies, Inc., has a substantial presence in defense electronics, suggesting relevant expertise.

Value Assessment

Rating: good

Benchmarking the per-unit cost of spare parts is challenging without specific part numbers and quantities. However, the total award of $100.7 million over approximately five years suggests a moderate annual spend for sustainment. The firm fixed-price nature of the contract provides cost certainty. Further analysis would require comparing the pricing of individual line items against market rates or historical data for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of a competitive process generally supports better price discovery and potentially more favorable terms for the government. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of suppliers to offer their best value solutions.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, which will receive the spare parts. These spare parts are critical for the sustainment and operational readiness of the Multifunctional Information Distribution System (MIDS) Joint Tactical Radio System (JTRS). The contract has a geographic impact primarily within California, where the contractor is located, and wherever the MIDS JTRS systems are deployed. The contract supports jobs within the defense manufacturing sector, particularly in communications equipment manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific part numbers makes it difficult to assess if pricing is competitive for individual components.
The duration of the contract could lead to price increases if not managed effectively through contract modifications.
Reliance on a single prime contractor for a broad range of spares could present supply chain risks if not properly monitored.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty and limits government exposure to cost overruns.
The prime contractor, L3 Technologies, Inc., is an established defense contractor with relevant experience in communications systems.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on communications equipment manufacturing. The MIDS JTRS program is a critical component of modern military communication networks, enabling secure and jam-resistant data and voice transmission. The market for such specialized defense components is typically characterized by a limited number of highly capable suppliers, often with long-standing relationships with government agencies. Spending in this area is driven by the need for advanced, reliable communication systems to support diverse operational environments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, the prime contractor, L3 Technologies, Inc., may engage small businesses as subcontractors to fulfill parts of the contract, depending on their internal procurement strategies and the availability of specialized components in the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Accountability measures are inherent in the contract terms, requiring delivery of specified spare parts. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports are typically internal to the agency.

Related Government Programs

MIDS Program
JTRS Program
Defense Communications Systems
Tactical Data Links
Military Spare Parts Procurement

Risk Flags

Potential for obsolescence in spare parts
Supply chain vulnerability for specialized components
Long-term cost management for sustainment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $100.7 million to L3 TECHNOLOGIES, INC.. MIDS JTRS 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 $100.7 million.

What is the period of performance?

Start: 2021-07-01. End: 2027-01-30.

What is the historical spending trend for MIDS JTRS spare parts under this contract vehicle?

The provided data represents a single delivery order award of $100.7 million for MIDS JTRS spares, with a performance period extending from July 1, 2021, to January 30, 2027. This specific award does not inherently reveal historical spending trends for MIDS JTRS spare parts. To understand historical trends, one would need to examine previous contract awards, delivery orders, and task orders issued under the parent contract vehicle (if applicable) or for similar spare parts requirements over multiple fiscal years. Analyzing annual spending patterns, fluctuations in demand, and the average cost per year would provide a clearer picture of the program's sustainment budget evolution.

How does the pricing of these MIDS JTRS spares compare to similar components in the defense market?

A direct comparison of the pricing for these MIDS JTRS spares to similar components in the defense market is difficult without specific part numbers, quantities, and detailed specifications. The $100.7 million award covers a range of unspecified spare parts. To perform a meaningful benchmark, one would need to identify comparable items (e.g., other radio frequency components, communication modules) procured by the DoD or other military branches, analyze their unit costs, and consider factors like technological sophistication, obsolescence, and supplier base. The fact that this contract was awarded under full and open competition suggests that the pricing was deemed competitive at the time of award, but external validation against market rates for specific parts would be necessary for a definitive assessment.

What are the primary risks associated with the sustainment of the MIDS JTRS system, and how does this contract address them?

Primary risks associated with MIDS JTRS sustainment include potential obsolescence of components, supply chain disruptions, limited availability of specialized parts, and the high cost of maintaining aging systems. This contract, valued at $100.7 million, addresses these risks by securing a supply of necessary spare parts through a firm fixed-price agreement, which provides cost certainty. The full and open competition aims to ensure a competitive supply base. However, risks remain regarding the long-term availability of specific components and the potential for price increases over the contract's duration (2021-2027). Effective program management, proactive inventory management, and continuous market surveillance by the Navy are crucial to mitigate these ongoing sustainment risks.

What is the track record of L3 Technologies, Inc. in delivering similar communication equipment or spare parts to the DoD?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant track record in delivering a wide array of communication systems, electronic warfare equipment, and related components to the Department of Defense. They are known for their expertise in areas such as secure communications, avionics, and sensor systems. While specific details on their performance for MIDS JTRS spares under this particular contract require access to internal performance reports, their established presence and broad capabilities in the defense sector suggest they possess the necessary technical expertise and manufacturing capacity. Past performance evaluations and contract databases would provide more granular insights into their historical delivery success rates, quality adherence, and on-time delivery metrics for similar defense contracts.

How does the $100.7 million award for MIDS JTRS spares fit into the broader context of DoD spending on communication systems?

The $100.7 million award for MIDS JTRS spares represents a component of the Department of Defense's substantial investment in maintaining and upgrading its communication infrastructure. MIDS JTRS is a critical enabler for network-centric warfare, facilitating secure data links between various platforms. DoD spending on communication systems encompasses a vast array of programs, including satellite communications, tactical radios, network infrastructure, and cybersecurity. While $100.7 million is a significant sum for spare parts, it should be viewed within the context of the overall DoD budget, which often runs into hundreds of billions of dollars annually. This specific contract addresses the sustainment needs of a particular, albeit vital, communication system, ensuring its operational readiness.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other 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: N0003919R1000

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: $100,718,720

Exercised Options: $100,718,720

Current Obligation: $100,718,720

Actual Outlays: $94,005

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $16,881,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0058

IDV Type: IDC

Timeline