DoD's $25.8M contract for prototype GPS augmentation systems awarded to L3 Technologies, Inc

Contract Overview

Contract Amount: $25,840,108 ($25.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-12-11

End Date: 2019-08-31

Contract Duration: 1,724 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF PNT PSEUDOLITE R&D TO DEVELOP TWO (2) PROTOTYPE AND PROVIDE LAB TESTING.

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to L3 TECHNOLOGIES, INC. for work described as: IGF::OT::IGF PNT PSEUDOLITE R&D TO DEVELOP TWO (2) PROTOTYPE AND PROVIDE LAB TESTING. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (1724 days) indicates a long-term project with potential for evolving requirements. 4. The contract was awarded as a Delivery Order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 334290 points to the 'Other Communications Equipment Manufacturing' sector. 6. The contract was awarded to a single entity, L3 Technologies, Inc. 7. The contract was awarded by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost control, but the cost-reimbursement nature means the government bears the risk of actual costs incurred. Comparing this to similar R&D contracts for prototype development would be necessary to assess if the $25.8 million expenditure represents good value for the delivered prototypes and lab testing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders (no) suggests a reasonable level of competition for this specialized R&D requirement. This competitive environment is generally expected to drive more favorable pricing and innovative solutions.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by encouraging multiple companies to offer their best pricing and technical approaches.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, receiving prototype GPS augmentation systems. The contract supports the development of advanced communication equipment, potentially enhancing military operational capabilities. The contract was performed in New Jersey (NJ), indicating a geographic concentration of economic activity and potential workforce impact in that state. The development of prototype systems implies a focus on technological advancement and future military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns if not meticulously monitored.
The long contract duration (1724 days) could lead to scope creep or obsolescence if requirements are not managed tightly.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the delivered prototypes.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract aims to develop and test prototypes, indicating investment in technological advancement.
The fixed fee component provides a degree of cost certainty for the contractor's effort.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, a segment of the broader defense industrial base focused on specialized electronic and communication systems. The market for such technologies is driven by defense spending and the need for advanced, reliable communication solutions. Comparable spending benchmarks would likely involve R&D contracts for similar prototype development in areas like navigation, satellite communications, or electronic warfare systems.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors. However, without explicit set-aside information or subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency would be enhanced by public reporting of contract performance and expenditures, though detailed cost breakdowns are often proprietary.

Related Government Programs

GPS Augmentation Systems
Prototype Development Contracts
Department of Defense Research and Development
Communications Equipment Manufacturing
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Long contract duration may increase risk of scope creep or obsolescence.
Prototype development inherently carries technical risks and uncertainties.
Dependence on GPS technology highlights potential vulnerabilities to jamming or spoofing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to L3 TECHNOLOGIES, INC.. IGF::OT::IGF PNT PSEUDOLITE R&D TO DEVELOP TWO (2) PROTOTYPE AND PROVIDE LAB TESTING.

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 $25.8 million.

What is the period of performance?

Start: 2014-12-11. End: 2019-08-31.

What is the track record of L3 Technologies, Inc. in fulfilling similar Department of Defense contracts, particularly those involving R&D and prototype development?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant history of performing contracts for the Department of Defense across various domains, including communications, intelligence, surveillance, and reconnaissance (ISR), and electronic warfare. Their experience often involves complex system development, integration, and production. For R&D and prototype development, L3 Technologies has been involved in numerous projects requiring innovation and rapid prototyping. A detailed review of their past performance on similar cost-plus fixed-fee contracts, especially those related to GPS augmentation or advanced communication systems, would be necessary to fully assess their capability and reliability in executing this specific contract. Past performance evaluations and any documented issues or successes on prior DoD contracts would provide crucial context.

How does the total contract value of $25.8 million compare to the cost of similar prototype development contracts for GPS augmentation systems?

Directly comparing the $25.8 million value of this contract to similar prototype development contracts for GPS augmentation systems requires access to a database of comparable procurements, including their scope, duration, and specific deliverables. Factors such as the complexity of the required prototypes, the level of technological innovation sought, the specific testing protocols, and the number of prototypes to be delivered all influence cost. Without this comparative data, it's difficult to definitively state whether $25.8 million represents a high, low, or average expenditure. However, R&D contracts for advanced defense systems can be substantial, and the value should be assessed against the criticality and technological advancement of the GPS augmentation capabilities being developed.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this procurement, and how were they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the cost of performance, while the contractor is assured a fixed fee for their effort, regardless of the final cost. This can incentivize contractors to incur higher costs if not properly managed, as their profit (the fixed fee) remains constant. Risks include potential cost overruns, less incentive for the contractor to control costs aggressively, and the need for rigorous government oversight to ensure costs are reasonable and allocable. Mitigation strategies typically involve detailed cost accounting standards, thorough audits, strong program management oversight to monitor progress and expenditures, and clear definition of the scope of work to prevent scope creep. The fixed fee itself provides some incentive for efficiency, as the contractor wants to complete the work within a reasonable timeframe to realize their profit.

What is the expected impact of these prototype GPS augmentation systems on the Department of the Army's operational capabilities?

The development of prototype GPS augmentation systems is intended to enhance the accuracy, reliability, and resilience of positioning, navigation, and timing (PNT) information for Department of the Army operations. GPS signals can be susceptible to jamming, spoofing, or signal blockage in certain environments (e.g., urban canyons, mountainous terrain, or under electronic warfare conditions). Augmentation systems aim to mitigate these vulnerabilities by providing alternative or supplementary PNT sources, improving signal integrity, or offering more robust navigation solutions. The successful development and testing of these prototypes could lead to improved situational awareness, more precise targeting, enhanced maneuverability, and overall increased mission effectiveness for Army units operating in contested or degraded PNT environments.

How has historical spending on similar 'Other Communications Equipment Manufacturing' contracts by the Department of the Army trended over the past five years?

Analyzing historical spending trends for 'Other Communications Equipment Manufacturing' contracts by the Department of the Army requires access to comprehensive contract databases and analytical tools. Generally, spending in this sector can fluctuate based on modernization priorities, technological advancements, and specific operational needs. The Army continually invests in advanced communication systems to maintain battlefield superiority and ensure secure, reliable information flow. Trends might show increased investment in areas like resilient PNT, secure tactical networks, and electronic warfare capabilities. Without specific data, it's speculative, but one could anticipate consistent or growing investment in technologies that enhance communication robustness and survivability in modern warfare scenarios.

What does the duration of the contract (1724 days, approximately 4.7 years) imply about the complexity and R&D nature of the project?

A contract duration of 1724 days (approximately 4.7 years) for the development of two prototypes and lab testing strongly suggests a project of significant complexity and a substantial research and development component. Developing advanced technological prototypes, especially in a field like GPS augmentation where precision and reliability are paramount, often involves iterative design, multiple testing phases, and potential challenges in achieving desired performance specifications. Such a long timeframe allows for thorough exploration of different technical approaches, rigorous testing under various conditions, and incorporation of feedback from lab evaluations. It indicates that this is not a straightforward manufacturing or procurement task but rather an investment in innovation and the maturation of new technology.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 2 FEDERAL ST, CAMDEN, NJ, 08102

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: $31,636,177

Exercised Options: $27,645,774

Current Obligation: $25,840,108

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T13D0009

IDV Type: IDC

Timeline