DoD's $18.5M R&D contract for missile and space systems advanced tech development awarded to L-3 Communications

Contract Overview

Contract Amount: $18,459,460 ($18.5M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-04-22

End Date: 2013-07-01

Contract Duration: 2,992 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200512!502764!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0015 !A!N! !Y!0046 ! !20050422!20070423!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!1 FEDERAL ST !CAMDEN !NJ!08103!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002918000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!Y!2!007!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08102

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to L3 TECHNOLOGIES, INC. for work described as: 200512!502764!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0015 !A!N! !Y!0046 ! !20050422!20070423!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!1 FEDERAL ST !CAMDEN !NJ!08103!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant investment in research and development for critical defense capabilities. 3. Contract duration of approximately 8 years indicates a long-term need. 4. Awarded through full and open competition, suggesting a robust bidding process. 5. Contract type is Time and Materials, which can pose cost control challenges. 6. Small business participation was not a primary focus of this award.

Value Assessment

Rating: fair

The total award amount of $18.5 million over approximately 8 years suggests a substantial investment in advanced technology. Benchmarking this against similar R&D contracts in missile and space systems is challenging without more specific service details. However, the Time and Materials contract type, while flexible, can lead to cost overruns if not closely managed, potentially impacting the overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 7 bids suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The specific details of the competition, such as the number of technically acceptable proposals, are not provided but the breadth of competition is a positive indicator.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and ensuring the government receives the best value through market forces.

Public Impact

Benefits the Department of Defense by advancing critical missile and space system technologies. Services delivered include research and development in advanced technological areas. Geographic impact is primarily within the contractor's operational areas, with potential for broader defense applications. Workforce implications include specialized R&D roles for engineers and scientists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation without strict oversight.
Long contract duration requires sustained monitoring to ensure continued value.
Limited information on specific performance metrics makes assessing effectiveness difficult.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Contract supports advanced technology development, crucial for national security.
Contractor has a significant presence in the defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. Spending in this area is critical for maintaining technological superiority in defense. Comparable spending benchmarks would depend on the specific sub-field of advanced technology being developed.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large corporation suggests that the primary focus was on technical capability rather than small business participation. This means the direct economic impact on the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program managers within the Department of Defense responsible for monitoring progress, cost, and performance. Accountability measures are inherent in the contract terms, with potential for penalties or termination for non-performance. Transparency is facilitated through contract databases, but detailed performance reports are often not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Missile Defense Agency (MDA) Support
Advanced Technology Development Programs
Space and Strategic Defense Research
Department of Defense Research and Development

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of technological obsolescence over the long contract duration.
Need for sustained and effective government oversight throughout the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to L3 TECHNOLOGIES, INC.. 200512!502764!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !DASG6002D0015 !A!N! !Y!0046 ! !20050422!20070423!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!1 FEDERAL ST !CAMDEN !NJ!08103!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000002918000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !5!B!M! !A! !202

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 $18.5 million.

What is the period of performance?

Start: 2005-04-22. End: 2013-07-01.

What is the specific nature of the 'advanced technology development' for missile and space systems under this contract?

The provided data indicates the contract is for 'RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and falls under the 'MISSILE AND SPACE SYSTEMS' category with a specific focus on 'MDA SUPPORT'. While the exact nature of the advanced technology is not detailed, it likely pertains to research and development efforts aimed at enhancing capabilities in areas such as missile defense, space-based surveillance, satellite technology, or advanced propulsion systems for space applications. Given the 'RDTE' designation, the work would involve scientific investigation and experimentation to solve problems and develop new or improved technologies, rather than the production of existing systems.

How does the Time and Materials (T&M) contract type compare to other contract types for R&D services in terms of cost control?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which can be common in R&D. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts generally provide less cost certainty for the government compared to fixed-price contracts. Effective cost control under T&M relies heavily on robust government oversight, detailed tracking of labor hours, and strict management of material costs to prevent scope creep and ensure value. Without strong controls, T&M can lead to higher overall costs than anticipated.

What is the historical spending trend for similar missile and space systems R&D contracts within the Department of Defense?

Analyzing historical spending trends for similar missile and space systems R&D contracts requires access to comprehensive federal procurement data beyond this single contract. However, it is generally understood that the Department of Defense consistently allocates significant resources to R&D in these critical areas due to evolving geopolitical threats and the need for technological superiority. Spending in this sector often fluctuates based on strategic priorities, technological breakthroughs, and specific program requirements. Trends may show increased investment during periods of heightened international tension or rapid technological advancement in adversary capabilities.

What are the potential risks associated with a long-duration contract (nearly 8 years) for advanced technology development?

Long-duration contracts for advanced technology development carry several potential risks. Firstly, the technological landscape can change rapidly, meaning the initial objectives might become obsolete or less relevant by the contract's end. Secondly, maintaining consistent oversight and engagement over such an extended period can be challenging for government personnel. Thirdly, contractor performance and focus may wane over time if not continuously managed. Finally, unforeseen cost increases due to inflation, changing labor rates, or evolving requirements can significantly impact the total contract value, making long-term budget predictability difficult.

How does the contractor, L-3 Communications Corporation, perform on other government contracts, particularly in R&D?

L-3 Communications Corporation (now part of L3Harris Technologies) has a substantial history of performing on various U.S. government contracts, including significant work within the Department of Defense. While specific performance metrics for all contracts are not publicly detailed, the company has generally been a major supplier of advanced technologies, communications, and aerospace systems. Their track record includes numerous large contracts for R&D, systems integration, and sustainment across different military branches. Performance can vary by contract, but their continued presence and awards suggest a generally capable performance history in complex defense-related areas.

What is the significance of the NAICS code 541710 in the context of this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' signifies that the primary service procured under this contract involves scientific research and experimental development. This code covers establishments that conduct research and development in areas like mathematics, engineering, and technology. For this specific contract, it confirms the focus is on innovation and the creation of new knowledge or technologies related to missile and space systems, rather than the manufacturing or direct operational use of existing systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 1 FEDERAL ST, CAMDEN, NJ, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Parent Contract

Parent Award PIID: DASG6002D0015

IDV Type: IDC

Timeline