L3 Technologies awarded $21.9M contract for SDN-L Program by U.S. Special Operations Command

Contract Overview

Contract Amount: $21,892,246 ($21.9M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-07-14

End Date: 2013-03-31

Contract Duration: 260 days

Daily Burn Rate: $84.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SDN-L PROGRAM

Place of Performance

Location: VICTOR, ONTARIO County, NEW YORK, 14564

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to L3 TECHNOLOGIES, INC. for work described as: SDN-L PROGRAM Key points: 1. Contract value represents a significant investment in specialized communications equipment. 2. Competition dynamics indicate a robust bidding process for this requirement. 3. Performance period is relatively short, suggesting a focused project scope. 4. The firm fixed-price structure aims to control costs and transfer risk to the contractor. 5. This award falls within the broader defense sector's spending on advanced technology.

Value Assessment

Rating: good

The contract value of $21.9 million for the SDN-L Program appears reasonable given the specialized nature of defense communications equipment. Benchmarking against similar contracts for advanced wireless communications systems would provide a more precise value-for-money assessment. The firm fixed-price type suggests that the government has negotiated a definitive price, which is generally favorable for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 5 bidders participating. This level of competition is positive as it suggests a wide range of potential suppliers were considered, likely leading to a more competitive pricing environment and a better selection of qualified vendors. The presence of multiple bidders generally enhances the government's ability to secure favorable terms and pricing.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain the best value. This approach minimizes the risk of overpayment and promotes a fair playing field for all eligible contractors.

Public Impact

This contract directly supports U.S. Special Operations Command's operational capabilities. The program likely involves the procurement or development of advanced wireless communications equipment. Benefits extend to enhancing secure and reliable communication for special operations forces. The geographic impact is primarily national, supporting defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve beyond initial definition.
Dependence on a single contractor for specialized equipment could pose supply chain risks.

Positive Signals

Firm fixed-price contract helps manage budget predictability.
Full and open competition suggests a competitive award process.
Award to a known entity in the defense sector may indicate a track record of performance.

Sector Analysis

The defense sector is a major consumer of advanced electronics and communications technology. Companies like L3 Technologies play a crucial role in supplying specialized equipment that meets stringent military requirements. Spending in this area is driven by the need for technological superiority and secure communication capabilities for national security operations. Comparable spending benchmarks would involve analyzing other contracts for similar radio and wireless communication systems within the Department of Defense.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While L3 Technologies is a large business, the competitive nature of the award allows for potential subcontracting opportunities. Analysis of the subcontracting plan, if available, would reveal the extent to which small businesses may benefit from this award.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific program details may be classified.

Related Government Programs

Special Operations Forces Equipment Procurement
Defense Communications Systems
Advanced Wireless Technology Contracts

Risk Flags

Contract awarded under Full and Open Competition
Firm Fixed Price contract type
Awarded to a large, established defense contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to L3 TECHNOLOGIES, INC.. SDN-L PROGRAM

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2012-07-14. End: 2013-03-31.

What is the specific nature of the SDN-L Program and the equipment being procured?

The provided data identifies the program as 'SDN-L PROGRAM' and the North American Industry Classification System (NAICS) code as 334220, which pertains to 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' While the exact specifications of the SDN-L Program are not detailed in the provided data, it can be inferred that the contract involves the manufacturing or supply of specialized wireless communication equipment tailored for U.S. Special Operations Command (SOCOM) needs. This could encompass a range of technologies, from secure tactical radios to advanced data transmission systems, designed to meet the unique and often classified operational requirements of special forces.

How does the $21.9 million award compare to typical spending for similar defense communications contracts?

The $21.9 million award for the SDN-L Program falls within a moderate range for specialized defense communications contracts. Large-scale procurements for major communication systems can easily reach hundreds of millions or even billions of dollars. However, contracts for specific, advanced equipment tailored to niche requirements, such as those for Special Operations Command, often range from several million to tens of millions. Without specific details on the exact technology and quantity, a precise comparison is difficult. However, given the competitive nature (5 bidders) and the firm fixed-price structure, this award suggests a well-defined scope and a market-driven price point for the capabilities delivered.

What are the potential risks associated with this contract for L3 Technologies, Inc.?

For L3 Technologies, Inc., potential risks associated with this $21.9 million contract include the possibility of cost overruns if the firm fixed-price (FFP) contract does not adequately account for unforeseen manufacturing challenges or material cost fluctuations. There's also the risk of performance issues, where meeting the technical specifications or delivery timelines for specialized communications equipment might prove more difficult than anticipated, potentially leading to penalties or reputational damage. Furthermore, if the program requires significant research and development, the risk of technological obsolescence or failure to meet evolving operational requirements could be a concern, especially given the relatively short performance period of 260 days.

What is the track record of L3 Technologies, Inc. in fulfilling defense contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a substantial track record in fulfilling defense contracts across various domains, including communications, sensors, and electronic systems. They are a well-established prime contractor for the Department of Defense and other government agencies. Their history includes numerous awards for complex systems and components, often involving advanced technology. While specific performance metrics for every contract are not publicly available, their continued success in securing large and critical defense contracts suggests a generally strong capability to meet government requirements. However, like any large defense contractor, they may have experienced isolated instances of performance challenges on specific programs.

How might the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' classification impact the program's scope?

The NAICS code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' indicates that the core of the SDN-L Program likely involves the production or integration of hardware related to wireless communication. This could range from sophisticated encrypted radios and mobile communication devices to components for larger communication networks. The classification suggests a focus on the physical manufacturing and assembly of equipment rather than purely software development or service provision, although software integration is often a critical part of such systems. This focus implies that the contract's primary deliverable is tangible hardware, potentially requiring significant supply chain management and manufacturing expertise from L3 Technologies.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222210R1006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 7640 OMNITECH PL, VICTOR, NY, 25

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,892,246

Exercised Options: $21,892,246

Current Obligation: $21,892,246

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9222210D1006

IDV Type: IDC

Timeline