GSA awards $26.2M sole-source IDIQ to L3 Technologies for SNR technicians, with a 5-year term

Contract Overview

Contract Amount: $26,249,830 ($26.2M)

Contractor: L3 Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-08-19

End Date: 2025-08-18

Contract Duration: 1,825 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ID05190069001 L3 SOLE SOURCE IDIQ TO1 SOCOM CONUS OCONUS SNR TECHNICIANS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $26.2 million to L3 TECHNOLOGIES, INC. for work described as: ID05190069001 L3 SOLE SOURCE IDIQ TO1 SOCOM CONUS OCONUS SNR TECHNICIANS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract type is Time and Materials, which can lead to cost overruns if not managed closely. 3. The contract has a long duration of 5 years, increasing exposure to potential performance issues. 4. The awardee, L3 Technologies, is a large business, with no indication of small business subcontracting. 5. The contract is for SNR technicians, a specialized skill set within the communications sector. 6. The contract was awarded by the General Services Administration (GSA) Federal Acquisition Service. 7. The contract has a base period of performance of 1825 days.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific technical services provided. Without competitive bids, it's difficult to ascertain if the Time and Materials pricing reflects fair market value. The lack of comparison to similar contracts makes it hard to assess cost-effectiveness. The total contract value of $26.2 million over five years suggests a significant investment, but the absence of competitive pressure raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding. The government did not leverage market competition to secure the most economical pricing for these specialized technician services.

Public Impact

The primary beneficiaries are the Department of Defense (implied by SOCOM) and potentially other agencies requiring specialized SNR technicians. The services delivered include the provision of skilled technicians for Signal-to-Noise Ratio (SNR) related tasks, likely in communications or electronic warfare. The geographic impact is CONUS and OCONUS, indicating a broad operational scope for the services. The contract supports a specialized technical workforce, potentially impacting employment in the defense and communications technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Time and Materials contract type carries inherent risk of cost overruns without strict oversight.
Long contract duration (5 years) increases the risk of performance degradation or obsolescence of services.
Lack of transparency regarding the specific justification for sole-source award.
No explicit mention of small business subcontracting goals.

Positive Signals

Award to L3 Technologies, a known entity in defense contracting, suggests potential for reliable service delivery.
The contract addresses a specialized need for SNR technicians, indicating a focus on critical capabilities.
GSA's involvement suggests adherence to federal procurement standards, though the sole-source nature is a concern.
The contract has a defined period of performance, allowing for reassessment at its conclusion.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically related to broadcasting and wireless communications equipment manufacturing and services. The market for specialized technicians in areas like SNR analysis is niche but critical for defense and intelligence operations. Comparable spending benchmarks are difficult to establish due to the sole-source nature and specific technical requirements, but the overall federal spending on IT and communications services is substantial, often in the billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The awardee, L3 Technologies, is a large corporation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary contract value will flow to a large prime contractor, with limited direct benefit or opportunity for the small business ecosystem unless L3 Technologies voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the contracting agency utilizing the services (likely SOCOM). As a sole-source award, the justification for this procurement method would be subject to review. The Time and Materials (T&M) contract type necessitates robust oversight to monitor labor hours and material costs to prevent overruns. Transparency regarding performance metrics and cost tracking would be crucial for accountability.

Related Government Programs

SOCOM IT Support Services
GSA Schedule IT Professional Services
Defense Communications Infrastructure
Wireless Communications Equipment Procurement
Federal IT Services Contracts

Risk Flags

Sole Source Award
Time and Materials Contract Type
Long Contract Duration
Lack of Competition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.2 million to L3 TECHNOLOGIES, INC.. ID05190069001 L3 SOLE SOURCE IDIQ TO1 SOCOM CONUS OCONUS SNR TECHNICIANS

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2020-08-19. End: 2025-08-18.

What is the specific justification for awarding this contract as sole-source to L3 Technologies?

The provided data indicates the contract was awarded as 'NOT COMPETED' and 'SOLE SOURCE'. A formal justification for this sole-source award would typically be documented by the General Services Administration (GSA) and the requiring agency (implied to be SOCOM). Common justifications include unique capabilities, proprietary technology, or the unavailability of other sources. Without access to the official Justification for Other Than Full and Open Competition (JOFOC), the precise rationale remains unknown. However, sole-source awards are generally reserved for situations where competition is not feasible or not in the government's best interest, often due to highly specialized requirements that only one contractor can meet.

How does the Time and Materials (T&M) contract type compare to other contract types in terms of cost risk for this type of service?

Time and Materials (T&M) contracts are often used when the level of effort or the exact scope of work cannot be predetermined. For services like providing specialized technicians, T&M can offer flexibility. However, it carries a higher cost risk for the government compared to fixed-price contracts. With T&M, the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rates. This means that if the contractor is inefficient or if unforeseen issues extend the work, costs can escalate significantly. Effective oversight, including detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure value for money.

What is the historical spending pattern for SNR technician services by SOCOM or GSA?

The provided data only pertains to this specific contract (ID05190069001). It does not offer historical spending data for similar SNR technician services by SOCOM or GSA. To assess historical spending patterns, one would need to query federal procurement databases (like FPDS or USASpending) for contracts with similar service descriptions (e.g., 'SNR technicians', 'signal analysis support', 'communications technicians') awarded to SOCOM or through GSA's Federal Acquisition Service over previous fiscal years. Analyzing these patterns would reveal trends in contract values, durations, competition levels, and pricing for these specialized services, providing context for the current $26.2 million award.

What are the potential performance risks associated with a 5-year sole-source contract for specialized technicians?

A 5-year sole-source contract for specialized technicians presents several potential performance risks. Firstly, the lack of competition for an extended period can reduce the contractor's incentive to maintain high performance standards or innovate, as there is no immediate threat of losing the business to a competitor. Secondly, the specialized nature of SNR technicians means that skillsets can become outdated or in high demand; a 5-year term might outlast the relevance of certain skills or lead to retention challenges for the contractor if market rates for these skills increase significantly. Thirdly, without regular competitive re-evaluation, the government may be locked into a service provider whose performance or cost-effectiveness declines over time. Robust performance management and clear service level agreements are essential to mitigate these risks.

How does the geographic scope (CONUS/OCONUS) impact the cost and complexity of this contract?

The requirement for services to be performed both within the Continental United States (CONUS) and Outside the Continental United States (OCONUS) significantly impacts the cost and complexity of this contract. OCONUS operations typically involve higher costs due to factors such as logistical support, travel expenses, potential hazard pay, differing labor laws, security requirements, and potentially higher per diem rates. Managing personnel and resources across multiple geographic locations, especially in potentially austere or high-risk environments, adds considerable complexity to contract administration, oversight, and service delivery. This broad geographic scope likely contributed to the overall contract value of $26.2 million.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116

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: $31,714,689

Exercised Options: $31,521,395

Current Obligation: $26,249,830

Actual Outlays: $-1,289

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $310,209

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA20D0014

IDV Type: IDC

Timeline