DoD Awards $163.6M for ENVG-B Kits to L3 Technologies, Inc. with No Competition
Contract Overview
Contract Amount: $163,658,634 ($163.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2025-09-29
Contract Duration: 2,194 days
Daily Burn Rate: $74.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENVG-B KITS (FIELD): YEAR TWO
Place of Performance
Location: LONDONDERRY, ROCKINGHAM County, NEW HAMPSHIRE, 03053
Plain-Language Summary
Department of Defense obligated $163.7 million to L3 TECHNOLOGIES, INC. for work described as: ENVG-B KITS (FIELD): YEAR TWO Key points: 1. Significant award value of $163.6 million for advanced night vision technology. 2. Sole-source award to L3 Technologies, Inc. raises questions about price discovery. 3. Long contract duration (2194 days) suggests a substantial, ongoing need. 4. The 'NH' status code and 'NEW HAMPSHIRE' location may indicate specific operational requirements or manufacturing sites.
Value Assessment
Rating: questionable
The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $163.6 million price represents fair value compared to market alternatives or potential cost savings through competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition on this large contract may result in higher taxpayer costs than if it had been competitively sourced.
Public Impact
Enhanced soldier capabilities through advanced night vision technology. Potential for increased operational effectiveness in low-light conditions. Long-term commitment to a single supplier for critical equipment. Impact on the defense industrial base, particularly in optical instrument manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- High value award
- Advanced technology
Sector Analysis
The Department of Defense is a major consumer of optical instruments and related manufacturing. This award falls within the 'Optical Instrument and Lens Manufacturing' sector, with a significant value that could influence market dynamics for similar defense-related optics.
Small Business Impact
The data indicates this award went to L3 Technologies, Inc., a large corporation. There is no indication of small business participation in this specific contract award, which is common for large sole-source defense contracts.
Oversight & Accountability
The Department of Defense, specifically the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and performance throughout the contract's duration.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Long-term reliance on a single vendor
- Limited transparency in pricing
- No small business participation noted
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, nh, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.7 million to L3 TECHNOLOGIES, INC.. ENVG-B KITS (FIELD): YEAR TWO
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 $163.7 million.
What is the period of performance?
Start: 2019-09-27. End: 2025-09-29.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of other responsible sources capable of meeting the requirement. Without further documentation, the specific reason for not competing this $163.6 million contract remains unclear and warrants investigation to ensure it aligns with federal procurement regulations.
What are the potential risks associated with a sole-source award of this magnitude and duration?
The primary risk is paying a premium due to the absence of competitive pressure, potentially leading to inflated costs for taxpayers. Other risks include vendor lock-in, reduced innovation if the sole provider becomes complacent, and potential supply chain vulnerabilities if L3 Technologies, Inc. faces production issues.
How will the effectiveness of the ENVG-B kits be measured and ensured over the contract's lifespan?
Effectiveness will likely be measured through performance metrics outlined in the contract, user feedback from military personnel, and operational deployment reports. The Defense Contract Management Agency's oversight role is crucial in monitoring performance, ensuring the kits meet specifications, and addressing any deficiencies to guarantee the intended operational benefits are realized.
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: $167,173,785
Exercised Options: $167,173,785
Current Obligation: $163,658,634
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $9,357,819
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: 2019-09-27
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-09-04
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