DoD Awards $117M Contract for SPARES (WITH WARRANTY) to L3 Technologies, Inc
Contract Overview
Contract Amount: $117,247,146 ($117.2M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-14
End Date: 2026-11-30
Contract Duration: 1,600 days
Daily Burn Rate: $73.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPARES (WITH WARRANTY)
Place of Performance
Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009
Plain-Language Summary
Department of Defense obligated $117.2 million to L3 TECHNOLOGIES, INC. for work described as: SPARES (WITH WARRANTY) Key points: 1. Significant contract value of $117.2 million for spare parts and warranty. 2. L3 Technologies, Inc. is the sole awardee under a full and open competition. 3. Potential risk associated with a single awardee for critical spare parts. 4. The contract falls under the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $117.2 million appears reasonable given the scope of spare parts and warranty over a multi-year period. Benchmarking against similar large-scale spare parts procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is L3 Technologies, Inc., indicating they were the most advantageous offer.
Taxpayer Impact: The competitive nature of the award aims to secure the best value for taxpayers, although the final price is fixed.
Public Impact
Ensures availability of critical spare parts for Department of the Navy operations. Warranty provision offers long-term cost savings and operational reliability. Supports the defense industrial base through a significant contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if future needs arise beyond initial scope.
- Dependence on a single supplier for critical spare parts.
Positive Signals
- Awarded under full and open competition.
- Includes a warranty, potentially reducing long-term maintenance costs.
- Long-term contract duration provides supply chain stability.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, which is crucial for maintaining operational readiness. Spending benchmarks in this sector vary widely based on technology and scale.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight for delivery orders and performance. Accountability will be managed through contract performance metrics and financial reporting.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole awardee for critical spare parts.
- Potential for price escalation on future orders.
- Long-term contract duration may limit flexibility for adopting newer technologies.
- Lack of small business participation noted.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.2 million to L3 TECHNOLOGIES, INC.. SPARES (WITH WARRANTY)
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 $117.2 million.
What is the period of performance?
Start: 2022-07-14. End: 2026-11-30.
What is the breakdown of spare parts and warranty costs within the total contract value?
The provided data does not specify the cost allocation between spare parts and the warranty. A detailed breakdown would be necessary to assess the value proposition of each component and ensure fair pricing for both.
Are there any identified risks associated with L3 Technologies, Inc.'s ability to fulfill this contract?
The data does not highlight any specific performance risks associated with L3 Technologies, Inc. However, as with any sole awardee for critical components, potential supply chain disruptions or quality control issues should be monitored.
How does the pricing of these spare parts compare to commercial equivalents or previous government procurements?
A direct comparison of pricing is not possible with the given data. A thorough analysis would require benchmarking against commercial off-the-shelf (COTS) prices, historical government contract data for similar items, and market research.
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: $117,247,146
Exercised Options: $117,247,146
Current Obligation: $117,247,146
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $58,591,845
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
Start Date: 2022-07-14
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2025-01-17
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