DoD's $268M Undersea Warfare Training Range contract awarded to L3 Technologies, Inc. for advanced simulation capabilities

Contract Overview

Contract Amount: $267,858,520 ($267.9M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-09

End Date: 2032-06-28

Contract Duration: 4,007 days

Daily Burn Rate: $66.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNDERSEA WARFARE TRAINING RANGE (USWTR) PROGRAM REQUIREMENTS WILL PROVIDE THE CAPABILITY FOR UNDERSEA WARFARE (USW) TRAINING AND ASSESSMENT IN SHALLOW WATER AND DEEP WATER UNDER ADVERSE CONDITIONS FOR AIR, SURFACE, AND SUBSURFACE FORCES.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $267.9 million to L3 TECHNOLOGIES, INC. for work described as: UNDERSEA WARFARE TRAINING RANGE (USWTR) PROGRAM REQUIREMENTS WILL PROVIDE THE CAPABILITY FOR UNDERSEA WARFARE (USW) TRAINING AND ASSESSMENT IN SHALLOW WATER AND DEEP WATER UNDER ADVERSE CONDITIONS FOR AIR, SURFACE, AND SUBSURFACE FORCES. Key points: 1. The contract aims to enhance undersea warfare training and assessment for various naval forces. 2. It addresses a critical need for realistic training environments in both shallow and deep waters. 3. The duration of the contract suggests a long-term commitment to developing and maintaining these training capabilities. 4. The firm-fixed-price structure provides cost certainty for the government, though it may limit flexibility. 5. The scope of work includes advanced simulation for air, surface, and subsurface threats. 6. This investment supports the modernization of naval training infrastructure.

Value Assessment

Rating: good

The awarded amount of $267.86 million over a period extending to 2032 indicates a significant investment in specialized training infrastructure. Benchmarking this against similar large-scale simulation and training range development contracts is challenging due to the unique nature of undersea warfare requirements. However, the firm-fixed-price contract type suggests an effort to control costs, although the long duration could introduce risks if requirements evolve significantly. The value proposition hinges on the effectiveness and realism of the training provided, which is difficult to quantify without performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the full and open nature suggests a robust competition was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces, ensuring the government receives the best value.

Public Impact

Naval forces, including air, surface, and subsurface units, will benefit from enhanced training realism. The contract will deliver advanced capabilities for undersea warfare training and assessment. The primary geographic impact is expected to be within naval training areas, potentially globally. The contract supports specialized technical roles within the defense industry for development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may lead to scope creep or evolving technological obsolescence.
Firm-fixed-price contracts can sometimes disincentivize contractor innovation if not structured with clear performance incentives.
Dependence on a single contractor for a critical training capability could pose a risk if performance issues arise.

Positive Signals

Full and open competition suggests a robust market assessment and potential for competitive pricing.
The firm-fixed-price structure provides budget certainty for the Department of Defense.
The contract addresses a critical, long-term capability need for naval forces.

Sector Analysis

The defense simulation and training market is a significant segment within the broader aerospace and defense industry. This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is driven by the need for advanced, realistic training environments that replicate complex operational scenarios, particularly in areas like undersea warfare where live training can be costly and logistically challenging. Comparable spending benchmarks would likely involve other large-scale simulation systems or training range developments for various military branches.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. As a large, complex system development contract, it is possible that L3 Technologies, Inc. will engage small businesses as subcontractors for specialized components or services. However, without explicit set-aside goals, the direct impact on the small business ecosystem is uncertain and would depend on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through program management offices and contracting officers. Accountability measures will be embedded within the contract's terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award announcements and public budget processes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Training Systems
Undersea Warfare Simulation
Defense Simulation and Training
Maritime Domain Awareness Systems
Fleet Training Programs

Risk Flags

Long-term contract duration increases risk of technological obsolescence.
Firm-fixed-price structure may limit flexibility for evolving requirements.
Dependence on a single contractor for critical training infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $267.9 million to L3 TECHNOLOGIES, INC.. UNDERSEA WARFARE TRAINING RANGE (USWTR) PROGRAM REQUIREMENTS WILL PROVIDE THE CAPABILITY FOR UNDERSEA WARFARE (USW) TRAINING AND ASSESSMENT IN SHALLOW WATER AND DEEP WATER UNDER ADVERSE CONDITIONS FOR AIR, SURFACE, AND SUBSURFACE FORCES.

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 $267.9 million.

What is the period of performance?

Start: 2021-07-09. End: 2032-06-28.

What is the historical spending pattern for the Undersea Warfare Training Range (USWTR) program prior to this award?

Information regarding historical spending specifically for the USWTR program prior to this definitive contract award is not readily available in the provided data. Definitive contracts are often used to establish long-term relationships or to procure services over an extended period, suggesting this award may represent the primary funding vehicle for the program's development and sustainment. Future spending will be dictated by the contract's performance periods and funding allocations. Analyzing broader trends in naval training simulation spending could offer context, but specific historical data for this particular range program would require deeper research into DoD budget justifications and prior contract actions, if any existed.

How does the awarded amount compare to similar large-scale simulation or training range contracts within the DoD?

Direct comparisons for the $267.86 million awarded to L3 Technologies, Inc. for the Undersea Warfare Training Range (USWTR) are difficult without specific details on the scope and complexity of comparable contracts. However, large-scale simulation and training systems for military applications can range from tens of millions to hundreds of millions of dollars, depending on the technology involved, the fidelity required, and the duration of development and sustainment. For instance, advanced flight simulators or virtual combat environments for fighter jets or ground vehicles often represent substantial investments. The USWTR's focus on undersea warfare, involving complex acoustic modeling and multi-domain operations, suggests a high degree of technical sophistication that aligns with significant contract values in the defense sector.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for simulation and training range contracts, success would be measured by factors such as the realism and fidelity of the simulated environment, the system's reliability and uptime, the ability to support diverse training scenarios (air, surface, subsurface), user feedback from trainees and instructors, and adherence to delivery schedules and technical specifications. The firm-fixed-price nature suggests that meeting defined technical requirements and delivery milestones will be critical. Detailed performance metrics are usually outlined in the contract's statement of work and performance work statement.

What is L3 Technologies, Inc.'s track record with similar large-scale defense simulation contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant track record in providing advanced simulation, training, and related technologies to the defense sector. They have been involved in developing a wide array of simulation systems, including those for aircraft, maritime vessels, and combat systems. Their expertise often encompasses sensor simulation, electronic warfare, and integrated training environments. While specific details on their past performance on contracts of identical scope to the USWTR program require further investigation, their established presence and capabilities in defense simulation suggest a strong foundation for undertaking such a complex requirement. Past performance evaluations within DoD procurement processes would offer more granular insights.

What are the potential risks associated with the long duration (ending 2032) of this contract?

The long duration of this contract, extending over a decade, presents several potential risks. Technological obsolescence is a primary concern; advancements in undersea warfare technology and simulation techniques could render the system outdated before the contract's end. Requirement evolution is another risk; the operational needs of the Navy might change significantly over such a long period, potentially leading to costly modifications or a system that no longer fully meets future demands. Furthermore, long-term contracts can sometimes lead to complacency or reduced urgency from the contractor if not managed proactively. Economic factors, such as inflation or shifts in defense budgets, could also impact the contract's financial viability or the government's ability to fund it consistently.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134021R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 1522 COOK PLACE, GOLETA, CA, 93117

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: $418,027,897

Exercised Options: $267,858,520

Current Obligation: $267,858,520

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $48,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline