DoD Awards $89M for ENVG-B Kits, Sole-Sourced to L3 Technologies
Contract Overview
Contract Amount: $88,970,583 ($89.0M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2024-01-25
Contract Duration: 1,945 days
Daily Burn Rate: $45.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENVG-B KITS (FIELD): YEAR ONE
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $89.0 million to L3 TECHNOLOGIES, INC. for work described as: ENVG-B KITS (FIELD): YEAR ONE Key points: 1. Significant award value of $88.97M for advanced night vision technology. 2. Sole-source award to L3 Technologies raises questions about competition and price discovery. 3. Long contract duration (2018-2024) suggests ongoing need and potential for cost escalation. 4. Focus on optical instrument manufacturing indicates a specialized, high-tech defense sector.
Value Assessment
Rating: questionable
The award value of $88.97M for ENVG-B Kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced optical systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to L3 Technologies. This lack of competition limits price discovery and may result in a higher cost to the government.
Taxpayer Impact: The absence of competitive bidding for this large contract could lead to taxpayers paying a premium for the ENVG-B Kits.
Public Impact
Enhances soldier capabilities with advanced night vision technology. Supports critical defense operations requiring superior situational awareness. Potential for technological advancements in military optics. Long-term commitment to a single supplier may impact future innovation. Ensures operational readiness for deployed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Advanced technology acquisition
- Support for critical defense needs
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced optical instruments for military applications. Spending benchmarks in this niche area are hard to establish without competitive data, but high R&D and specialized manufacturing costs are typical.
Small Business Impact
The contract was awarded to L3 Technologies, Inc., a large business. There is no indication of small business participation in this sole-source award, suggesting limited opportunities for small businesses in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Defense Contract Management Agency's role is crucial in monitoring this contract's execution and value.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of bidding.
- Long contract duration may not reflect evolving technology.
- No clear small business participation noted.
- Risk of vendor lock-in for critical technology.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.0 million to L3 TECHNOLOGIES, INC.. ENVG-B KITS (FIELD): YEAR ONE
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 $89.0 million.
What is the period of performance?
Start: 2018-09-28. End: 2024-01-25.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair and reasonable pricing, the agency would likely conduct a price analysis based on historical data, cost breakdowns from the contractor, or comparisons to similar, albeit not identical, systems. However, without competition, the government's leverage to negotiate a lower price is significantly reduced.
What are the potential risks associated with a long-term, sole-source contract for advanced optical equipment?
Risks include potential cost overruns due to lack of competitive pressure, vendor lock-in limiting future technological upgrades or alternative solutions, and reduced incentive for the sole-source provider to innovate aggressively. There's also a risk that the technology could become outdated if not actively managed and potentially replaced by a more competitive offering in the future.
How does the acquisition of ENVG-B Kits contribute to the overall effectiveness of defense operations, and is the current spending aligned with expected outcomes?
ENVG-B Kits are designed to significantly enhance soldier situational awareness and operational effectiveness in low-light and night conditions. This advanced technology directly supports critical missions by improving target acquisition and navigation. The substantial investment suggests a high expectation of improved combat effectiveness, but ongoing monitoring is needed to confirm that the spending translates into tangible operational gains and meets performance requirements.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc.
Address: 9 AKIRA WAY, LONDONDERRY, NH, 03053
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: $88,970,583
Exercised Options: $88,970,583
Current Obligation: $88,970,583
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W91CRB18D0003
IDV Type: IDC
Timeline
Start Date: 2018-09-28
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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