DoD Awards $180M for Ophthalmic Goods Manufacturing to L3 Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $180,412,441 ($180.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-08-10
End Date: 2019-06-30
Contract Duration: 3,246 days
Daily Burn Rate: $55.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENVG(O) TEST ARTICLES
Place of Performance
Location: LONDONDERRY, ROCKINGHAM County, NEW HAMPSHIRE, 03053
Plain-Language Summary
Department of Defense obligated $180.4 million to L3 TECHNOLOGIES, INC. for work described as: ENVG(O) TEST ARTICLES Key points: 1. Significant contract value of $180.4 million awarded. 2. L3 Technologies, Inc. is the sole contractor. 3. Contract spans nearly 9 years, indicating long-term need. 4. Firm Fixed Price contract type suggests cost certainty.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit data or comparison points for ophthalmic goods manufacturing, a precise value assessment is difficult. The firm fixed price structure aims for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and specific nature of the goods may limit the number of active bidders over time.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers. The $180.4 million expenditure over nearly nine years requires ongoing scrutiny to ensure continued cost-effectiveness.
Public Impact
Ensures supply of essential ophthalmic goods for military personnel. Supports a large defense contractor and its supply chain. Long-term commitment may impact future market entry for competitors.
Waste & Efficiency Indicators
Waste Risk Score: 55 / 10
Warning Flags
- Long contract duration (3246 days).
- Sole awardee for the entire period.
- Lack of specific unit cost data for benchmarking.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls within the broader defense manufacturing sector, specifically focusing on specialized goods. Benchmarking requires comparison to similar long-term, high-value contracts for manufactured defense equipment.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses. Analysis would require further investigation into L3 Technologies' subcontracting plans.
Oversight & Accountability
The contract's long duration necessitates robust oversight from the Defense Contract Management Agency to ensure performance, quality, and adherence to the firm fixed price terms throughout its lifecycle.
Related Government Programs
- Ophthalmic Goods Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration.
- Sole awardee.
- Potential for reduced competition over time.
- Lack of detailed unit cost data for benchmarking.
- Specific product details not provided.
Tags
ophthalmic-goods-manufacturing, department-of-defense, nh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.4 million to L3 TECHNOLOGIES, INC.. ENVG(O) TEST ARTICLES
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $180.4 million.
What is the period of performance?
Start: 2010-08-10. End: 2019-06-30.
What is the average annual spending on this contract, and how does it compare to industry benchmarks for similar ophthalmic goods?
The average annual spending is approximately $21.2 million ($180.4M / 8.5 years). Benchmarking this against industry standards for specialized ophthalmic goods requires detailed market research. Without specific product details and volume, direct comparison is challenging, but this figure represents a significant investment.
Given the sole awardee status over a long period, what mechanisms are in place to mitigate potential risks of price creep or reduced innovation?
The firm fixed price contract type inherently shifts cost risk to the contractor, limiting price creep. However, long-term sole-source arrangements can stifle innovation. Mechanisms like performance incentives, regular contract reviews, and potential future re-competition after the current term are crucial for mitigating these risks.
How effectively has the full and open competition process secured value for the government over the contract's lifespan?
The initial full and open competition is a positive indicator for value. However, the true effectiveness is measured by the contractor's performance and pricing stability over the nearly nine-year duration. Ongoing monitoring and potential post-award audits are necessary to confirm sustained value realization.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Ophthalmic Goods Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB09R0089
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 9 AKIRA WAY, LONDONDERRY, NH, 03053
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $197,276,465
Exercised Options: $181,979,580
Current Obligation: $180,412,441
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-10
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2020-09-15
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