DoD awards $90.5M for Manned/Unmanned Teaming Hardware & Services to L3 Technologies, Inc

Contract Overview

Contract Amount: $90,553,903 ($90.6M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-22

End Date: 2027-11-30

Contract Duration: 1,195 days

Daily Burn Rate: $75.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MANNED/UNMANNED TEAMING DELIVERY ORDER TO PROCURE HARDWARE AND SERVICES IN SUPPORT OF THE UNITED STATES GOVERNMENT (USG).

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $90.6 million to L3 TECHNOLOGIES, INC. for work described as: MANNED/UNMANNED TEAMING DELIVERY ORDER TO PROCURE HARDWARE AND SERVICES IN SUPPORT OF THE UNITED STATES GOVERNMENT (USG). Key points: 1. Contract awarded for critical hardware and services supporting government operations. 2. Focus on manned/unmanned teaming suggests advancement in defense technology. 3. Long performance period indicates a significant, ongoing requirement. 4. Sole-source award raises questions about potential cost efficiencies and market exploration. 5. The contract's value places it as a substantial investment within its sector. 6. Performance is concentrated in Utah, potentially impacting local economy and workforce.

Value Assessment

Rating: fair

The contract value of $90.5 million over approximately four years represents a significant investment. Without specific benchmarks for manned/unmanned teaming hardware and services, a direct value-for-money assessment is challenging. However, the sole-source nature of the award warrants scrutiny to ensure competitive pricing was not overlooked. Comparing this to similar, competitively awarded contracts for advanced aerospace components or integrated systems would be necessary for a more robust evaluation of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3 Technologies, Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for specialized capabilities or urgent needs, they limit price discovery and may result in higher costs compared to a fully competed scenario. The absence of competition means the government did not benefit from potential cost reductions or innovative solutions that might have emerged from a bidding war.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

The United States Government (USG) is the primary beneficiary, receiving essential hardware and services. The contract supports advancements in manned/unmanned teaming, likely enhancing operational capabilities. Geographic impact is concentrated in Utah, where the contractor is based. Workforce implications may include specialized engineering, manufacturing, and technical support roles within L3 Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for cost savings.
Lack of transparency in the procurement process due to non-competitive nature.
Long contract duration could lead to scope creep or evolving requirements not fully accounted for in initial pricing.

Positive Signals

Award to an established contractor (L3 Technologies, Inc.) suggests a level of trust and existing capability.
Focus on advanced technology (manned/unmanned teaming) indicates investment in future defense capabilities.
Firm Fixed Price contract type provides cost certainty for the government, assuming scope is well-defined.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for advanced teaming technologies, integrating manned and unmanned systems, is a rapidly growing segment within defense. Spending in this area is driven by the need for enhanced situational awareness, reduced risk to personnel, and increased operational efficiency. Comparable spending benchmarks would typically be found within other large, sole-source or competitively awarded contracts for complex aerospace systems or specialized electronic warfare components.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting goals for small businesses (sb: false). This suggests that the primary awardee, L3 Technologies, Inc., will likely perform the majority of the work. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem for this particular contract appears limited, though L3 Technologies may engage small businesses within its broader supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and program management offices. As a delivery order under a larger vehicle (implied by 'delivery order'), oversight may be tied to the terms of the base contract. Transparency is limited due to the sole-source nature of the award. Accountability measures would typically involve performance reviews, milestone tracking, and adherence to the firm fixed price terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Procurement
Aerospace Manufacturing
Unmanned Aerial Systems (UAS)
Advanced Technology Development
Defense Hardware Procurement

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.6 million to L3 TECHNOLOGIES, INC.. MANNED/UNMANNED TEAMING DELIVERY ORDER TO PROCURE HARDWARE AND SERVICES IN SUPPORT OF THE UNITED STATES GOVERNMENT (USG).

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 Army).

What is the total obligated amount?

The obligated amount is $90.6 million.

What is the period of performance?

Start: 2024-08-22. End: 2027-11-30.

What is the specific nature of the 'Manned/Unmanned Teaming' hardware and services being procured?

The provided data does not detail the specific types of hardware or services included under 'Manned/Unmanned Teaming Delivery Order'. However, this technology typically involves the integration of manned aircraft or ground systems with unmanned platforms (like drones) to enhance operational effectiveness. Services could range from software development for command and control, sensor integration, data fusion, training, to maintenance and support for the combined systems. The hardware might include specialized communication links, processing units, or modifications to existing platforms to enable seamless teaming.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the contract is a follow-on to a previous sole-source award where the original source is the only viable option. Without further justification from the Department of Defense, the specific rationale for awarding this $90.5 million contract solely to L3 Technologies, Inc. remains unclear, but it implies a belief that no other contractor could meet the requirements as effectively or efficiently.

How does the $90.5 million contract value compare to similar investments in manned/unmanned teaming technology?

Direct comparison of this $90.5 million contract value to similar manned/unmanned teaming procurements is difficult without access to a comprehensive database of such contracts, especially given the specialized nature of the technology. However, large-scale investments in advanced defense systems, particularly those involving complex integration and cutting-edge technology, often run into tens or hundreds of millions of dollars. The value suggests a significant program of record or a critical capability development effort. Competitively awarded contracts for similar, albeit less specialized, aerospace components or systems can provide some context, but the unique integration aspect of teaming likely commands a premium.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. The government may not achieve the best possible value for its investment. Additionally, sole-sourcing can stifle innovation by not allowing other companies to propose alternative or potentially superior solutions. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility and negotiation power. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

What is L3 Technologies, Inc.'s track record with the Department of Defense, particularly in advanced teaming technologies?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a long-standing and extensive track record as a major defense contractor for the Department of Defense. They are known for providing a wide range of products and services, including advanced electronic systems, communication, avionics, and sensor technologies, many of which are critical components for modern military platforms. While specific details on their involvement in manned/unmanned teaming programs are not provided in the summary data, their broad capabilities in areas like sensor integration, data processing, and platform modernization suggest they possess the foundational expertise necessary for such complex systems.

What is the expected duration and impact of the contract's performance period (2024-2027)?

The contract performance period spans from August 22, 2024, to November 30, 2027, totaling approximately 3 years and 4 months (or 1195 days). This duration indicates a substantial and ongoing requirement for the specified hardware and services. Such a timeframe allows for development, integration, testing, and deployment phases. The impact includes sustained funding for L3 Technologies, Inc., potential for long-term employment in specialized roles, and the gradual fielding of advanced capabilities to the end-users within the Department of the Army, ultimately aiming to enhance operational readiness and effectiveness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $90,553,903

Exercised Options: $90,553,903

Current Obligation: $90,553,903

Subaward Activity

Number of Subawards: 59

Total Subaward Amount: $9,214,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ24D0065

IDV Type: IDC

Timeline