DoD awards $63M for MIDS JTRS Terminal Production to L3 Technologies, Inc

Contract Overview

Contract Amount: $63,059,293 ($63.1M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2027-09-30

Contract Duration: 745 days

Daily Burn Rate: $84.6K/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 $63.1 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS TERMINAL PRODUCTION Key points: 1. Contract value represents a significant investment in tactical communication systems. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance period extends over two years, indicating a sustained need. 4. The contract falls within the 'Other Communications Equipment Manufacturing' NAICS code. 5. This award is part of a broader DoD strategy to modernize battlefield communications.

Value Assessment

Rating: good

The contract value of $63 million for MIDS JTRS terminal production appears reasonable given the specialized nature of the equipment. Benchmarking against similar advanced communication systems suggests that the pricing is likely competitive, especially considering the full and open competition. The firm fixed-price structure provides cost certainty for the government. Further analysis would require detailed cost breakdowns and comparisons to previous production runs or similar systems from other vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of two bidders suggests a healthy level of competition for this specialized defense contract. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is sought, potentially leading to lower prices and higher quality.

Public Impact

The primary beneficiaries are U.S. military personnel who will receive enhanced communication capabilities. The contract delivers critical MIDS JTRS terminals, essential for secure and interoperable battlefield communications. The geographic impact is primarily within Department of Defense operations globally. Workforce implications include skilled manufacturing and engineering roles at L3 Technologies and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring interoperability with existing and future communication systems is crucial.
Long-term sustainment and maintenance costs need careful consideration beyond initial production.

Positive Signals

L3 Technologies has a strong track record in defense electronics manufacturing.
The MIDS JTRS program is a proven system with established operational benefits.
Firm fixed-price contract provides cost control and predictability.

Sector Analysis

The defense electronics manufacturing sector is characterized by high barriers to entry due to technological complexity and stringent quality requirements. This contract for MIDS JTRS terminals fits within the broader market for tactical data links and secure communication systems, a segment vital for modern military operations. Comparable spending in this area often involves significant R&D and production investments, with major defense contractors dominating the landscape.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. The prime contractor, L3 Technologies, Inc., is a large defense corporation. The impact on the small business ecosystem would depend on whether L3 Technologies engages small businesses as subcontractors for components or specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified terminals. Transparency is generally maintained through contract award databases, though detailed cost and performance data may be considered sensitive.

Related Government Programs

Joint Tactical Information Distribution System (JTIDS)
Multifunctional Information Distribution System (MIDS)
Warfighter Information Network-Tactical (WIN-T)
Command and Control Systems

Risk Flags

Supply Chain Risk
Interoperability Risk
Cybersecurity Risk
Long-term Sustainment Cost Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.1 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 $63.1 million.

What is the period of performance?

Start: 2025-09-15. End: 2027-09-30.

What is L3 Technologies' track record with MIDS JTRS or similar communication systems?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant history in producing advanced communication and electronic warfare systems for defense applications. While specific details on their involvement with MIDS JTRS production prior to this award are not detailed in the provided data, the company has extensive experience with Link 16 terminals and other components of the Multifunctional Information Distribution System (MIDS) family. Their broader portfolio includes secure communication radios, satellite communication systems, and electronic warfare pods, demonstrating a strong capability in the domain relevant to this contract. This established expertise suggests a lower risk profile regarding technical execution and program management for MIDS JTRS terminal production.

How does the $63 million award compare to historical spending on MIDS JTRS terminals?

Historical spending on MIDS JTRS terminals can vary significantly based on production volume, technological upgrades, and the specific configurations ordered. Without access to detailed historical contract data for MIDS JTRS terminals awarded to L3 Technologies or other vendors, a direct comparison is challenging. However, the $63 million figure for a two-year delivery order suggests a substantial, but not unprecedented, investment. The Department of Defense procures these terminals incrementally over many years, with total program costs accumulating over the lifecycle. This award represents a specific tranche of production, and its value should be assessed in the context of the overall program's sustainment and modernization efforts.

What are the primary risks associated with this contract for MIDS JTRS terminal production?

Key risks for this contract include potential supply chain disruptions for specialized electronic components, which could impact production timelines and costs. Ensuring the seamless integration and interoperability of the new terminals with existing and future military communication networks is another critical risk. Furthermore, the long-term sustainment and maintenance of these advanced terminals present ongoing challenges and potential cost overruns if not adequately planned. Finally, cybersecurity risks associated with networked communication equipment require continuous vigilance and mitigation strategies throughout the system's lifecycle.

How effective are MIDS JTRS terminals in enhancing battlefield communications?

MIDS JTRS terminals are designed to significantly enhance battlefield communications by providing secure, jam-resistant, and interoperable data links. They enable real-time situational awareness by allowing different platforms (air, ground, sea) to share tactical data, improving command and control. The 'JTRS' (Joint Tactical Radio System) aspect implies enhanced software-defined radio capabilities, allowing for greater flexibility in communication waveforms and future upgrades. Their effectiveness is crucial for joint operations, enabling seamless information exchange between different branches of the military and allied forces, thereby improving mission coordination and reducing friendly fire incidents.

What is the typical contract structure for MIDS JTRS terminal production?

Contracts for MIDS JTRS terminal production typically involve a combination of contract types, often starting with development contracts and moving to firm-fixed-price (FFP) contracts for production. This specific award is a delivery order under a larger contract, structured as Firm Fixed Price (FFP). FFP contracts are common for production phases as they provide the government with cost certainty, shifting the risk of cost overruns to the contractor. These contracts usually specify quantities, delivery schedules, and technical performance requirements. Multi-year contracts or indefinite-delivery/indefinite-quantity (IDIQ) vehicles are often used to procure these systems over extended periods, with individual delivery orders like this one defining specific production runs.

What is the significance of the 'Other Communications Equipment Manufacturing' NAICS code?

The North American Industry Classification System (NAICS) code 334290, 'Other Communications Equipment Manufacturing,' signifies that the primary business activity of the contractor under this award involves the production of communication equipment not elsewhere classified. This broad category encompasses a range of products, including radio and television broadcasting equipment, wireless communications equipment, and other electronic components used for transmitting or receiving voice, data, or video. For MIDS JTRS terminals, this code accurately reflects their function as specialized communication devices essential for military operations, falling outside more specific categories like telephone apparatus manufacturing or computer peripheral equipment.

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

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: $63,059,293

Exercised Options: $63,059,293

Current Obligation: $63,059,293

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,405,435

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