DoD Awards $179M for MIDS JTRS Terminals to L3 Technologies, Inc

Contract Overview

Contract Amount: $179,155,201 ($179.2M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2025-12-31

Contract Duration: 915 days

Daily Burn Rate: $195.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS JTRS TERMINALS (WITH WARRANTY)

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $179.2 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS TERMINALS (WITH WARRANTY) Key points: 1. Significant award for critical communication equipment. 2. L3 Technologies is a major defense contractor. 3. Potential for cost overruns or performance issues. 4. Spending aligns with defense sector priorities.

Value Assessment

Rating: good

The award value of $179.16M for MIDS JTRS Terminals appears reasonable given the duration and nature of the equipment. Benchmarking against similar complex communication systems suggests this is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for essential defense communication hardware.

Public Impact

Ensures continued operational capability for Navy forces. Supports advanced, secure battlefield communications. Potential for follow-on contracts and sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Warranty costs not explicitly detailed.
Potential for obsolescence of technology.
Dependence on a single awardee for this order.

Positive Signals

Awarded under full and open competition.
Long-term contract duration provides stability.
Includes warranty, enhancing long-term value.

Sector Analysis

This contract falls within the defense sector, specifically for communications equipment manufacturing. Spending on such systems is crucial for maintaining military readiness and interoperability.

Small Business Impact

The prime contractor, L3 Technologies, Inc., is a large business. There is no indication of small business subcontracting participation in this specific award data.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract type (firm fixed price) and competitive award suggest a degree of accountability for cost and performance.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Warranty cost transparency
Technology obsolescence risk
Long-term sustainment planning
Potential for sole-source follow-on orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $179.2 million to L3 TECHNOLOGIES, INC.. MIDS JTRS TERMINALS (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 $179.2 million.

What is the period of performance?

Start: 2023-06-30. End: 2025-12-31.

What is the specific breakdown of costs associated with the included warranty?

The provided data does not detail the specific cost allocation for the warranty. Further analysis of the contract line items would be required to ascertain the warranty's financial impact and ensure it aligns with industry standards and the expected lifespan of the MIDS JTRS terminals.

What are the risks associated with the long-term sustainment and potential obsolescence of this technology?

The primary risk is that MIDS JTRS technology may become outdated before the contract end date, requiring costly upgrades or replacements. This necessitates proactive technology refresh planning and monitoring of industry advancements to mitigate obsolescence and ensure long-term operational effectiveness.

How effectively does this award contribute to the overall interoperability of communication systems within the DoD?

MIDS JTRS terminals are designed for interoperability across various platforms and services, enhancing secure battlefield communications. This award ensures the continued availability of these critical components, directly supporting the DoD's goal of seamless information exchange and operational synergy.

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: $179,155,201

Exercised Options: $179,155,201

Current Obligation: $179,155,201

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $71,927,258

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