L3 Technologies awarded $36M contract for wireless communications equipment, highlighting Air Force's need for advanced broadcasting capabilities

Contract Overview

Contract Amount: $36,032,541 ($36.0M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-03-02

End Date: 2012-01-31

Contract Duration: 700 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Other

Official Description: GMT

Place of Performance

Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $36.0 million to L3 TECHNOLOGIES, INC. for work described as: GMT Key points: 1. Contract value of $36M over 700 days suggests a significant investment in specialized communication systems. 2. Full and open competition indicates a healthy market for these types of wireless communications equipment. 3. The contract's duration and cost point to a complex, potentially high-risk project requiring specialized expertise. 4. Awarded by the Department of the Air Force, this contract aligns with defense sector needs for robust communication infrastructure. 5. The North American Industry Classification System (NAICS) code 334220 places this contract within the broadcasting equipment manufacturing sector.

Value Assessment

Rating: good

The contract value of $36,032,541 for a 700-day period, with a 'Cost No Fee' pricing structure, suggests a focus on ensuring the contractor can cover expenses while delivering the required services. While specific performance metrics are not detailed here, the 'Cost No Fee' arrangement can sometimes indicate higher risk for the contractor or a need for flexibility in project scope. Benchmarking against similar contracts for wireless communications equipment would be necessary for a more precise value assessment, but the amount appears reasonable for specialized defense communication systems.

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 bids. This suggests a competitive environment where multiple companies likely vied for the opportunity. The presence of three bids (no: 3) provides some level of price discovery, though the exact number of bidders and the spread of their proposals would offer a clearer picture of the competitive intensity and its impact on final pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring that defense funds are used efficiently.

Public Impact

The primary beneficiaries are likely elements within the Department of the Air Force requiring advanced wireless communication and broadcasting capabilities. The contract delivers essential equipment for radio and television broadcasting and wireless communications, crucial for military operations and potentially public affairs. The geographic impact is primarily within the United States, supporting Air Force installations and operations. Workforce implications include employment opportunities within L3 Technologies and its supply chain, particularly in manufacturing and engineering roles related to wireless communications equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' pricing structure can sometimes lead to cost overruns if not managed meticulously, potentially impacting the final expenditure.
Lack of detailed performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the contractor's delivery.
The duration of the contract (700 days) suggests a potentially complex project where unforeseen challenges could arise, impacting timelines and costs.

Positive Signals

Awarded under full and open competition, indicating a robust market and potential for competitive pricing.
The contractor, L3 Technologies, is a known entity in the defense sector, suggesting a level of established capability and experience.
The contract addresses a clear need within the Department of the Air Force for critical communication equipment.

Sector Analysis

This contract falls within the broader Information Technology and Defense sectors, specifically focusing on the manufacturing of wireless communications equipment. The market for such specialized broadcasting and communication technology is driven by government procurement, particularly from defense agencies, and increasingly by commercial telecommunications advancements. The $36M award is a significant, albeit singular, data point within this sector, reflecting the ongoing investment in maintaining and upgrading secure and reliable communication networks for national security purposes. Comparable spending benchmarks would involve analyzing other contracts for similar communication hardware and systems awarded to various defense contractors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not specify any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on this information. While L3 Technologies may engage small businesses as subcontractors, this is not explicitly detailed. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Air Force Command and Control Systems
Defense Communications Infrastructure
Wireless Broadcasting Equipment Procurement
Department of Defense Information Technology Contracts

Risk Flags

Cost No Fee structure requires diligent oversight to manage potential cost escalations.
Contract duration of 700 days may present challenges in adapting to rapidly evolving technology.
Specific performance metrics are not detailed, making objective assessment of value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to L3 TECHNOLOGIES, INC.. GMT

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 $36.0 million.

What is the period of performance?

Start: 2010-03-02. End: 2012-01-31.

What is the track record of L3 Technologies in fulfilling similar defense communication contracts?

L3 Technologies, now part of L3Harris Technologies, has a substantial track record in delivering advanced communication, electronic warfare, and sensor systems to various defense agencies, including the Department of the Air Force. They have been involved in numerous contracts related to secure communications, data links, and electronic intelligence gathering. While specific details for this particular $36M contract awarded in 2010 are not elaborated here, their broader history suggests a capacity to handle complex projects. Analyzing past performance on similar contracts, including on-time delivery, adherence to specifications, and cost control, would provide a more granular assessment of their reliability for this specific award.

How does the $36M contract value compare to other similar wireless communications equipment procurements by the Department of the Air Force?

The $36,032,541 contract value for wireless communications equipment awarded to L3 Technologies in 2010 is a significant sum, reflecting the specialized nature and potential scale of the required systems. To benchmark this value, one would need to compare it against other Department of the Air Force (or broader DoD) contracts for similar equipment, such as radio transmitters, receivers, broadcasting apparatus, and related components, awarded around the same period. Factors like contract duration (700 days), specific technical requirements, quantity, and the level of competition influence pricing. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents a high, low, or average value. However, for advanced defense-grade communication systems, this amount appears within a plausible range.

What are the primary risks associated with a 'Cost No Fee' (CNF) contract for wireless communications equipment?

A 'Cost No Fee' (CNF) contract structure, as indicated for this award, means the contractor is reimbursed for allowable costs but receives no profit or fee. This structure is typically used in situations where the scope of work is uncertain, the risk of cost overrun is high, or the government wants to incentivize the contractor to control costs without the added complexity of profit calculation. For wireless communications equipment, risks associated with CNF contracts can include the contractor potentially cutting corners on quality or support to minimize their own unreimbursed costs, or conversely, a lack of strong incentive to innovate or exceed basic requirements. The government bears the primary financial risk, as all allowable costs are covered, making robust oversight crucial to prevent excessive spending and ensure delivery of the specified equipment.

What is the expected effectiveness of the wireless communications equipment procured under this contract for Air Force operations?

The effectiveness of the wireless communications equipment procured under this $36M contract hinges on its technical specifications, reliability, and integration capabilities within the Air Force's existing communication architecture. As it falls under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing), the equipment is likely intended for robust, secure, and potentially long-range communication needs. For Air Force operations, such equipment could support command and control, intelligence, surveillance, reconnaissance (ISR), logistics, and personnel communications. Its effectiveness will be measured by its ability to maintain clear and secure transmissions in diverse operational environments, its interoperability with other systems, and its overall contribution to mission success. Detailed performance metrics and operational testing data would be required for a definitive assessment.

How has spending on wireless communications equipment by the Department of the Air Force trended historically?

Historical spending on wireless communications equipment by the Department of the Air Force (and the broader Department of Defense) has generally trended upwards, driven by technological advancements, evolving threats, and the increasing reliance on networked operations. This includes investments in secure tactical radios, satellite communication terminals, data links, and broadcasting systems. Factors such as modernization programs, conflicts, and shifts in strategic priorities influence year-over-year spending. While this specific $36M contract from 2010 represents a snapshot, analyzing aggregate spending data over the past decade or more would reveal trends in technology adoption, major procurement programs, and the allocation of resources towards different types of communication systems within the Air Force.

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

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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

Address: 435 MORELAND ROAD, HAUPPAUGE, NY, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,032,541

Exercised Options: $36,032,541

Current Obligation: $36,032,541

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872606D0001

IDV Type: IDC

Timeline