DoD's $27M MIDS JTRS SE&I contract awarded to L3 Technologies, Inc. for communications equipment

Contract Overview

Contract Amount: $27,046,542 ($27.0M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-27

End Date: 2025-09-30

Contract Duration: 156 days

Daily Burn Rate: $173.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I (CPFF) BALANCE

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS SE&I (CPFF) BALANCE Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk if not managed closely. 3. Delivery Order (DO) indicates this is a task order against a larger contract vehicle. 4. The contract duration is 156 days, suggesting a short-term need for services or equipment. 5. The contract is not set aside for small businesses, indicating larger prime contractors are expected to perform the work. 6. The contract is for Other Communications Equipment Manufacturing, placing it within a specific industrial sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the underlying contract vehicle. However, the Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without excessive profit. Comparing the per-unit cost of the 'Other Communications Equipment' to similar items procured by the Department of the Navy or other DoD components would be necessary for a thorough value assessment. The limited duration suggests a focused effort, which may limit the potential for significant cost overruns if well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Navy likely issued a solicitation that allowed for a broad range of potential contractors to compete, ensuring that the government received proposals from multiple qualified entities.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) capabilities. The contract will deliver services and/or equipment related to the MIDS JTRS SE&I (System Engineering & Integration) program. The geographic impact is likely concentrated within areas where the Navy operates or deploys MIDS JTRS systems, potentially worldwide. Workforce implications may include specialized engineers and technical staff at L3 Technologies, Inc. and potentially subcontractors involved in system integration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
Lack of specific details on the 'SE&I' scope makes it difficult to assess if the fixed fee is appropriate for the effort required.
The short duration might indicate a need for rapid deployment, which can sometimes increase costs.
The absence of small business participation as a prime contractor could limit opportunities for smaller innovative firms in this specific award.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
L3 Technologies, Inc. is a known defense contractor, implying a level of established capability and experience.
The contract is a Delivery Order against an existing contract vehicle, suggesting a pre-vetted and potentially streamlined procurement process.
The fixed fee component of the CPFF contract provides a ceiling on contractor profit, encouraging efficiency.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector encompasses a broad range of products used for transmitting and receiving information. Within the defense industry, such equipment is critical for command and control, intelligence sharing, and operational coordination. Spending in this sector is often driven by modernization efforts, technological upgrades, and the need for secure, interoperable communication systems across various military branches. Comparable spending benchmarks would involve analyzing other DoD contracts for similar communication systems, considering factors like system complexity, quantity, and technological sophistication.

Small Business Impact

This contract was not set aside for small businesses, meaning the prime contract was awarded to a large business, L3 Technologies, Inc. This implies that any subcontracting opportunities for small businesses would be at the discretion of the prime contractor. While large prime contractors often have subcontracting plans, the absence of a set-aside means there's no direct mandate for small business participation in this specific award. The impact on the small business ecosystem depends on L3 Technologies' subcontracting strategy and whether they engage smaller firms for specialized services or components.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would include performance monitoring against the contract's statement of work, adherence to cost reporting requirements under the CPFF structure, and timely delivery of goods or services. Transparency is typically maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

MIDS JTRS Program
Tactical Data Links
Secure Communications Systems
Defense Communications Infrastructure
Naval Aviation Communications

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Limited duration may indicate a focused effort, but rapid deployment needs can sometimes increase costs.
No small business set-aside means direct opportunities for small businesses are not mandated for this prime contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to L3 TECHNOLOGIES, INC.. MIDS JTRS SE&I (CPFF) BALANCE

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 $27.0 million.

What is the period of performance?

Start: 2025-04-27. End: 2025-09-30.

What is the specific scope of the 'SE&I' (System Engineering & Integration) for this MIDS JTRS contract, and how does it align with L3 Technologies' core competencies?

The 'SE&I' scope for the MIDS JTRS contract typically involves the technical management and engineering activities required to integrate, test, and sustain the MIDS JTRS system. This can include requirements definition, system architecture development, interface control, verification and validation, risk management, and technical support throughout the system's lifecycle. L3 Technologies, Inc. (now part of L3Harris Technologies) has a strong background in defense electronics, communications systems, and system integration, making them a suitable contractor for such tasks. Their expertise likely encompasses the complex integration challenges associated with advanced tactical communication systems like MIDS JTRS, ensuring interoperability and performance across various platforms.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar defense communication system integration efforts, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) structure is common in defense contracts, particularly for research, development, and complex system integration where the scope may evolve or is not fully defined at the outset. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This differs from fixed-price contracts, where the contractor agrees to a total price regardless of costs, and cost-reimbursement contracts without a fixed fee. For cost control, CPFF requires robust government oversight to ensure costs are reasonable and allocable. While the fixed fee incentivizes the contractor to complete the work efficiently to protect their profit margin, it can also lead to cost overruns if the government does not effectively manage the scope and contractor performance. Compared to firm-fixed-price contracts, CPFF offers more flexibility but less cost certainty for the government. It is often chosen when technical risks are high or when the scope is difficult to define precisely upfront.

What is the historical spending pattern for MIDS JTRS SE&I or similar communication system integration efforts by the Department of the Navy over the past five years?

Analyzing historical spending patterns for MIDS JTRS SE&I or similar communication system integration efforts by the Department of the Navy requires access to detailed federal procurement data. Generally, spending in this area tends to be consistent, driven by the ongoing need to maintain, upgrade, and integrate advanced communication systems across naval platforms. Factors influencing spending include technological obsolescence, evolving threat environments, and the introduction of new communication standards. The Navy, like other branches of the DoD, invests significantly in ensuring its forces have secure, reliable, and interoperable communication capabilities. Historical data would likely show recurring awards for system engineering, integration, sustainment, and upgrades, with significant contract values reflecting the complexity and criticality of these systems. Specific figures would necessitate a deep dive into contract databases like FPDS or SAM.gov, filtering by agency, product service code, and contract type.

What are the key performance indicators (KPIs) typically used to evaluate the success of a MIDS JTRS SE&I contract, and how are they measured?

Key Performance Indicators (KPIs) for a MIDS JTRS SE&I contract typically focus on technical performance, schedule adherence, and cost management. Technical KPIs might include system availability rates, data throughput speeds, message success rates, interoperability with other systems, and compliance with cybersecurity requirements. Schedule adherence is measured by the timely completion of milestones and deliverables outlined in the contract's statement of work. Cost management KPIs involve tracking actual costs against the estimated costs, ensuring that expenditures remain within the allocated budget and that the fixed fee is earned appropriately. These KPIs are usually measured through regular progress reports, technical reviews, testing and evaluation results, and financial status reports submitted by the contractor and reviewed by the government's contracting officer's representative (COR) and program management team.

What is the track record of L3 Technologies, Inc. (and its relevant divisions) in delivering complex communication system integration projects for the Department of Defense?

L3 Technologies, Inc., now part of L3Harris Technologies, has a substantial track record in delivering complex communication systems and integration services for the Department of Defense and other government agencies. The company has been involved in numerous programs related to tactical communications, electronic warfare, and command and control systems. Their experience often includes system design, development, manufacturing, integration, testing, and sustainment. For MIDS JTRS specifically, L3Harris has been a significant player, contributing to various aspects of the program, including hardware development and system integration. Their history suggests a capability to handle large, technically challenging projects, though like any large contractor, specific project performance can vary. A detailed review of their past performance on similar contracts, including any past performance evaluations or awards/debarments, would provide a more granular assessment.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $56,464,866

Exercised Options: $33,135,570

Current Obligation: $27,046,542

Actual Outlays: $18,471

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $516,796

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