Army awards $263M for enhanced night vision goggles, with L3 Technologies Inc. as the primary contractor

Contract Overview

Contract Amount: $262,939,031 ($262.9M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-31

End Date: 2026-12-31

Contract Duration: 730 days

Daily Burn Rate: $360.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENHANCED NIGHT VISION GOGGLE - BINOCULAR PRODUCTION SYSTEMS DELIVERY ORDER 02

Place of Performance

Location: LONDONDERRY, ROCKINGHAM County, NEW HAMPSHIRE, 03053

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $262.9 million to L3 TECHNOLOGIES, INC. for work described as: ENHANCED NIGHT VISION GOGGLE - BINOCULAR PRODUCTION SYSTEMS DELIVERY ORDER 02 Key points: 1. The contract value of $263 million represents a significant investment in advanced soldier systems. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and technological advancement. 3. Performance metrics and delivery timelines will be key indicators of contractor success. 4. This procurement aligns with the Army's modernization efforts for infantry capabilities. 5. The sector for specialized optical and defense equipment is highly competitive and technologically driven.

Value Assessment

Rating: good

Benchmarking the per-unit cost of these advanced night vision goggles against similar military procurements is essential. While specific unit costs are not provided, the total contract value suggests a substantial investment per system. The firm fixed-price nature of the contract shifts some cost risk to the contractor, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to commercial equivalents, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a reasonably competitive environment, which typically helps in achieving better pricing and terms for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition in driving value.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are U.S. Army soldiers who will receive enhanced night vision capabilities, improving operational effectiveness in low-light conditions. The contract will deliver production systems for enhanced night vision goggles, likely including binocular systems. The geographic impact is national, with potential for deployment to various operational theaters. Workforce implications may include specialized manufacturing and engineering roles within L3 Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated.
Dependence on a single contractor for a critical piece of soldier equipment.
Risk of technological obsolescence if future advancements are not incorporated.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Contract duration allows for sustained production and delivery.

Sector Analysis

The defense optics and night vision market is a specialized segment within the broader aerospace and defense industry. Companies in this sector invest heavily in research and development to maintain a technological edge. Spending in this area is driven by military modernization programs and the need for advanced situational awareness for warfighters. Comparable spending benchmarks would involve looking at other large-scale procurements for soldier-worn or soldier-enhancing equipment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, L3 Technologies, as a large prime contractor, may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on the company's subcontracting plan and the nature of the components and services required for the night vision goggle production.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm fixed-price contract terms, delivery schedules, and performance specifications. Transparency is generally maintained through contract award databases and reporting requirements, though specific production details may be sensitive.

Related Government Programs

Night Vision Systems
Soldier Modernization Programs
Advanced Combat Optics
Department of the Army Procurements

Risk Flags

Potential for schedule delays due to complex manufacturing.
Risk of technological obsolescence in a rapidly evolving field.
Dependence on specific supply chains for advanced components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $262.9 million to L3 TECHNOLOGIES, INC.. ENHANCED NIGHT VISION GOGGLE - BINOCULAR PRODUCTION SYSTEMS DELIVERY ORDER 02

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 $262.9 million.

What is the period of performance?

Start: 2024-12-31. End: 2026-12-31.

What is the historical spending by the Department of the Army on night vision systems?

Historical spending by the Department of the Army on night vision systems is substantial and has evolved significantly over the years, driven by technological advancements and operational demands. While specific figures for every year are not readily available in this context, major programs like the Family of Weapon Sights (FWS) and various generations of night vision goggles (NVGs) have seen multi-billion dollar investments over the past decade. These procurements often involve complex systems requiring advanced optics, image intensification, and thermal imaging capabilities. The spending patterns reflect a continuous effort to equip soldiers with superior situational awareness and targeting capabilities, especially in low-light and adverse weather conditions. The current $263 million award for enhanced night vision goggles is indicative of ongoing investment in this critical capability area.

How does the unit cost of these enhanced night vision goggles compare to previous generations or similar systems?

A precise unit cost comparison for these enhanced night vision goggles is not possible without knowing the exact number of units to be delivered under the $263 million contract. However, advanced night vision systems, particularly those incorporating multi-spectral capabilities or digital processing, tend to have higher unit costs than older, simpler image-intensifier-only systems. Factors such as the sophistication of the optics, sensor technology, durability requirements, and integration with other soldier systems all contribute to the price. If these goggles represent a significant technological leap, their unit cost would likely be higher than previous generations, but potentially offer improved performance and reduced lifecycle costs through greater reliability or reduced maintenance.

What are the key performance requirements and technological advancements in these 'enhanced' night vision goggles?

The term 'enhanced' in the context of night vision goggles typically implies advancements beyond standard image intensification. These could include features such as integrated thermal imaging (for detecting heat signatures), digital image processing for improved clarity and contrast, augmented reality overlays for displaying tactical data, wireless connectivity for data sharing, and potentially reduced size, weight, and power (SWaP) consumption. Enhanced systems aim to provide soldiers with superior target detection, recognition, and navigation capabilities in a wider range of environmental conditions, including complete darkness, fog, and smoke. The specific technological advancements for this L3 Technologies contract would be detailed in the system's technical specifications and performance requirements, which are usually classified or proprietary.

What is L3 Technologies' track record in producing night vision systems for the military?

L3 Technologies (now part of L3Harris Technologies) has a long-standing and significant track record in developing and producing advanced electro-optical and night vision systems for military and government customers. They have been a key supplier of various generations of night vision goggles, targeting systems, and other sensor technologies. Their experience spans decades, and they have consistently been involved in major military programs requiring high-performance visual augmentation. The company has a reputation for technological innovation and manufacturing capability in this specialized field, often competing for and winning large-scale contracts for critical soldier systems. Their involvement in this $263 million award is consistent with their established role in the defense industry.

What are the potential risks associated with the production and delivery of these advanced night vision systems?

Potential risks associated with the production and delivery of advanced night vision systems include technical challenges in manufacturing complex optical and electronic components to stringent military specifications. There's a risk of supply chain disruptions for specialized materials or sub-components. Schedule delays can occur due to unforeseen production issues or testing requirements. Furthermore, ensuring consistent quality and performance across a large production run is critical. Cybersecurity risks related to any digital components or data transmission capabilities also need to be managed. Finally, the rapid pace of technological advancement means that the fielded systems could potentially be surpassed by newer technologies before the end of their intended service life, although this is a broader industry challenge.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Commercial and Service Industry Machinery Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $262,939,031

Exercised Options: $262,939,031

Current Obligation: $262,939,031

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $37,042,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB24D0002

IDV Type: IDC

Timeline