DoD Awards $66.5M Contract for Wireless Communications Equipment to L3 Technologies, Inc
Contract Overview
Contract Amount: $66,453,623 ($66.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-13
End Date: 2027-05-30
Contract Duration: 1,202 days
Daily Burn Rate: $55.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SERVICES (OPN)
Place of Performance
Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103
Plain-Language Summary
Department of Defense obligated $66.5 million to L3 TECHNOLOGIES, INC. for work described as: SERVICES (OPN) Key points: 1. Significant contract value of $66.5 million awarded. 2. L3 Technologies, Inc. is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector involves Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type carries inherent risk for cost overruns. Without competitive bidding, it's difficult to assess if the fixed fee is reasonable or if the overall cost structure is optimized for taxpayer value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This limits price discovery and potentially leads to higher costs compared to a fully competed scenario.
Taxpayer Impact: The lack of competition and the Cost Plus Fixed Fee structure raise concerns about potential overspending of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The specific use of the wireless communications equipment is not detailed, limiting public understanding of its necessity. Oversight will be crucial to manage costs under the Cost Plus Fixed Fee arrangement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Award to established company L3 Technologies, Inc.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on wireless communications equipment manufacturing. Spending in this area is critical for defense modernization, but competitive procurement is key to ensuring value.
Small Business Impact
The awardee, L3 Technologies, Inc., is a large business. There is no indication that small businesses were involved in this specific procurement, which could be an area for improvement in future solicitations.
Oversight & Accountability
Given the non-competitive nature and the contract type, robust oversight by the Department of the Navy will be essential to monitor costs, performance, and ensure the government receives fair value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- No small business participation indicated
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.5 million to L3 TECHNOLOGIES, INC.. SERVICES (OPN)
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 $66.5 million.
What is the period of performance?
Start: 2024-02-13. End: 2027-05-30.
What specific wireless communications equipment is being procured, and what is the justification for not competing this contract?
The specific equipment is categorized under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). The justification for not competing the contract is not provided in the data. Typically, sole-source or limited competition is justified by factors like unique capabilities, urgent need, or lack of market availability. Further investigation would be needed to understand the rationale.
What are the potential cost risks associated with a Cost Plus Fixed Fee contract for this type of equipment?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs, as the government bears the burden of actual expenses. If costs escalate beyond initial estimates, the total expenditure for the government can significantly increase, impacting the overall value proposition.
How does the lack of competition impact the government's ability to secure advanced or specialized wireless technology?
A lack of competition can limit the government's exposure to a broader range of innovative solutions and potentially lower prices. When a contract is not competed, the government may miss out on advancements or specialized technologies offered by other capable firms. This can lead to acquiring technology that is not cutting-edge or paying a higher price than could be achieved through a competitive process.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6600124R0018
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 11 FEDERAL ST, CAMDEN, NJ, 08103
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: $66,453,623
Exercised Options: $66,453,623
Current Obligation: $66,453,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-13
Current End Date: 2027-05-30
Potential End Date: 2027-05-30 00:00:00
Last Modified: 2025-09-29
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