DoD Awards $27.4M for Aircraft Components & Accessories to L3 Technologies, Inc

Contract Overview

Contract Amount: $27,384,152 ($27.4M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-04-27

End Date: 2008-11-30

Contract Duration: 1,678 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200407!000341!5700!GU72 !ASC/RWKR !FA862004G4010 !A!N! !N!0005 ! !20040427!20041230!087937392!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2800 DISCOVERY BLVD !ROCKWALL !TX!75032!62828!397!48!ROCKWALL !ROCKWALL !TEXAS !+000002982105!N!N!000000000000!L016!TECH REP SVCS/AIRCRAFT COMPS & ACCYS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !336413!E! !4! ! ! ! ! !99990909!B! ! !N!Z!D!N!Y!1!001!N!6A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to L3 TECHNOLOGIES, INC. for work described as: 200407!000341!5700!GU72 !ASC/RWKR !FA862004G4010 !A!N! !N!0005 ! !20040427!20041230!087937392!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2800 DISCOVERY BLVD !ROCKWALL !TX!75032!62828!397!48!ROCKWALL !ROCK… Key points: 1. Contract awarded to L3 Technologies, Inc. for technical representative services and aircraft components. 2. The contract value is $27,384,151.69, with a period of performance from April 2004 to November 2008. 3. This contract was not competed, raising potential concerns about price discovery and value. 4. The sector is Defense, specifically for aircraft parts and accessories, a critical area for military readiness.

Value Assessment

Rating: questionable

The contract value of $27.4M over approximately 4.5 years for technical rep services and aircraft components appears high given the lack of competition. Benchmarking against similar sole-source or limited-competition contracts would be necessary to confirm value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited-competition award. This method can lead to higher prices due to a lack of market pressure and potentially less favorable price discovery for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services and components, as there was no competitive bidding to ensure the lowest possible price.

Public Impact

Military readiness may be impacted if essential aircraft components are procured at inflated prices. Taxpayer funds are being utilized for a significant contract without a competitive process. The long performance period suggests a sustained need for these specific services and parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration without competitive re-evaluation

Positive Signals

Addresses critical defense needs
Supports aircraft maintenance and operations

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft components and related technical services. Spending in this area is crucial for maintaining military aviation capabilities, but often involves specialized parts and services where competition can be limited.

Small Business Impact

There is no explicit indication of small business participation in this contract data. Further investigation would be needed to determine if small businesses were subcontracted or if opportunities were missed.

Oversight & Accountability

The lack of competition warrants closer oversight to ensure the government is receiving fair value. Accountability for the sole-source justification and pricing is essential.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of transparency in price justification
Long performance period without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to L3 TECHNOLOGIES, INC.. 200407!000341!5700!GU72 !ASC/RWKR !FA862004G4010 !A!N! !N!0005 ! !20040427!20041230!087937392!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!2800 DISCOVERY BLVD !ROCKWALL !TX!75032!62828!397!48!ROCKWALL !ROCKWALL !TEXAS !+000002982105!N!N!000000000000!L016!TECH REP SVCS/AIRCRAFT COMPS & ACCYS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !336413!E! !4! ! ! ! ! !999

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 Air Force).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2004-04-27. End: 2008-11-30.

What was the justification for awarding this contract on a sole-source basis, and was a market survey conducted to explore competitive options?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., urgency, unique capabilities, lack of sources) and confirm whether a market survey was performed to identify potential competitors or if it was deemed unnecessary due to specific circumstances.

How does the per-unit cost of these aircraft components and technical services compare to industry benchmarks or similar government contracts?

Without specific line-item details and unit costs, a direct comparison is difficult. However, given the sole-source nature, there is a heightened risk of the pricing being above market rates. Benchmarking against other sole-source or limited-competition contracts for similar items, or against commercial price lists if available, would be crucial for assessing value.

What is the potential impact on aircraft operational readiness if these components or services are not procured efficiently or at a fair price?

Inefficient procurement or overpricing of critical aircraft components and technical services can directly impact operational readiness. It could lead to budget shortfalls for other essential needs, delays in aircraft maintenance, or reduced availability of flight-ready assets, ultimately affecting the Air Force's ability to execute its mission.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 1700 SCIENCE PL, ROCKWALL, TX, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862004G4010

IDV Type: IDC

Timeline