DoD Awards $182M for MIDS JTRS Terminals to L3 Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $182,173,614 ($182.2M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-21
End Date: 2027-12-31
Contract Duration: 1,288 days
Daily Burn Rate: $141.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIDS JTRS TERMINAL PRODUCTION
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $182.2 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS TERMINAL PRODUCTION Key points: 1. Significant investment in critical communication equipment for the Navy. 2. L3 Technologies is a key player in the defense electronics sector. 3. Potential for cost savings through competitive bidding. 4. Focus on advanced communication systems highlights technological evolution in defense.
Value Assessment
Rating: good
The award amount of $182.2 million for MIDS JTRS terminals appears reasonable given the duration and the nature of the equipment. Benchmarking against similar advanced communication systems suggests this falls within expected pricing ranges for specialized defense hardware.
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 likely resulted in competitive pricing and ensured the government received the best value from multiple qualified bidders.
Taxpayer Impact: Full and open competition generally leads to taxpayer savings by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
Enhances secure battlefield communications for U.S. and allied forces. Supports interoperability between different military branches and platforms. Contributes to the modernization of naval communication infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Risk of obsolescence for communication technology over the contract duration.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term contract provides stability for production and delivery.
- Utilizes advanced technology crucial for modern military operations.
Sector Analysis
The defense electronics sector is characterized by high R&D costs and stringent quality requirements. Spending on communication equipment like MIDS JTRS is essential for maintaining military readiness and technological superiority, with significant government investment typical in this area.
Small Business Impact
While the prime contractor is L3 Technologies, a large entity, the contract may offer subcontracting opportunities for small businesses in the manufacturing and supply chain for components and specialized services.
Oversight & Accountability
The Department of the Navy's procurement process, utilizing full and open competition, suggests a commitment to oversight. However, ongoing monitoring of performance, quality, and adherence to delivery schedules will be crucial for accountability.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for technological obsolescence.
- Supply chain risks for specialized components.
- Dependency on a single large prime contractor.
- Long contract duration may outpace rapid technological advancements.
Tags
other-communications-equipment-manufactu, department-of-defense, ut, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $182.2 million to L3 TECHNOLOGIES, INC.. MIDS JTRS TERMINAL PRODUCTION
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 $182.2 million.
What is the period of performance?
Start: 2024-06-21. End: 2027-12-31.
What is the specific technological advantage offered by the MIDS JTRS terminals compared to previous generations?
The MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) terminals represent a significant upgrade, integrating advanced networking capabilities and enhanced security features. They are designed to improve situational awareness and enable seamless, secure data and voice communication across different platforms and services, moving beyond legacy systems' limitations.
What are the primary risks associated with the long-term production and delivery of these advanced communication terminals?
Key risks include potential technological obsolescence as newer communication standards emerge, supply chain vulnerabilities for critical components, and the challenge of maintaining consistent quality over the contract's multi-year duration. Geopolitical factors could also impact component availability or necessitate rapid adaptation to evolving threats.
How effectively does this contract leverage competition to ensure long-term value for taxpayers?
The contract's award under full and open competition is a strong indicator of effective value realization. This process allows multiple capable vendors to bid, driving down prices and fostering innovation. Continued oversight and performance management will be essential to ensure sustained value throughout the contract's lifecycle.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003924R4000
Offers Received: 2
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: $182,173,614
Exercised Options: $182,173,614
Current Obligation: $182,173,614
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $108,233,859
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003924D4005
IDV Type: IDC
Timeline
Start Date: 2024-06-21
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-01-23
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