ACC Awards $25M for SATCOM Gateway Upgrades to L3 Technologies, Inc

Contract Overview

Contract Amount: $25,055,164 ($25.1M)

Contractor: L3 Technologies, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-09-30

End Date: 2027-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AIR COMBAT COMMAND ACC SATELLITE COMMUNICATIONS SATCOM GATEWAY EQUIPMENT AND SYSTEMS UPGRADES

Place of Performance

Location: HAMPTON, YORK County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $25.1 million to L3 TECHNOLOGIES, INC. for work described as: AIR COMBAT COMMAND ACC SATELLITE COMMUNICATIONS SATCOM GATEWAY EQUIPMENT AND SYSTEMS UPGRADES Key points: 1. Significant investment in critical satellite communication infrastructure. 2. Sole awardee L3 Technologies, Inc. raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on essential communication systems for air combat command.

Value Assessment

Rating: fair

The award of $25,055,164.42 for SATCOM gateway equipment and systems upgrades appears to be a substantial investment. Without competitive bids, it's difficult to benchmark pricing against similar contracts, making a precise value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for the government compared to a competitive procurement process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential SATCOM upgrades.

Public Impact

Ensures continued operational capability for the Air Combat Command's satellite communications. Supports advanced communication needs for national defense and air operations. Potential impact on future procurement strategies for similar systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
No small business participation noted

Positive Signals

Critical infrastructure upgrade
Supports core mission functions

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on advanced communications equipment. Spending benchmarks for similar sole-source SATCOM procurements are difficult to establish without more data, but significant investments are common for critical defense infrastructure.

Small Business Impact

The data indicates that this contract was not awarded to a small business. There is no indication of small business subcontracting goals or participation in this sole-source award.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The General Services Administration (GSA) and Federal Acquisition Service (FAS) are responsible for managing this award, but the lack of competition warrants close scrutiny of the contract's value and performance.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of small business participation.
High dollar value requires close monitoring.
Dependency on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.1 million to L3 TECHNOLOGIES, INC.. AIR COMBAT COMMAND ACC SATELLITE COMMUNICATIONS SATCOM GATEWAY EQUIPMENT AND SYSTEMS UPGRADES

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 $25.1 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-09-29.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. For critical systems like SATCOM gateways, there might be specific technical requirements or proprietary technology that only L3 Technologies, Inc. can provide, necessitating a non-competitive procurement to meet operational demands.

What is the estimated cost savings if this contract had been competed?

Estimating cost savings from a hypothetical competition is challenging without market research data. However, competitive procurements often yield savings of 10-30% compared to sole-source awards, depending on the market and the specific goods or services. For this $25M contract, potential savings could range from $2.5M to $7.5M.

How will the effectiveness of these SATCOM upgrades be measured?

Effectiveness will likely be measured through performance metrics defined in the contract, such as system uptime, data transmission rates, latency, security compliance, and successful integration with existing command and control systems. Regular performance reviews and user feedback from the Air Combat Command will be critical to assessing the value and operational impact.

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

Solicitation ID: 47QFLA22R0018

Pricing Type: FIRM FIXED PRICE (J)

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: $50,319,591

Exercised Options: $46,080,938

Current Obligation: $25,055,164

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $8,814,433

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