DoD's $14.3M STORM-MLRF Contract Awarded to L3 Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $14,366,300 ($14.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-13
End Date: 2007-06-14
Contract Duration: 93 days
Daily Burn Rate: $154.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: STORM-MLRF MONTHS 1-12
Place of Performance
Location: LONDONDERRY, ROCKINGHAM County, NEW HAMPSHIRE, 03053
Plain-Language Summary
Department of Defense obligated $14.4 million to L3 TECHNOLOGIES, INC. for work described as: STORM-MLRF MONTHS 1-12 Key points: 1. Contract value of $14.3M for STORM-MLRF system over 93 days. 2. Awarded to L3 Technologies, Inc. under full and open competition. 3. Focus on 'Other Measuring and Controlling Device Manufacturing' sector. 4. Potential risk associated with firm fixed price contract in a complex system.
Value Assessment
Rating: fair
The contract value of $14.3M for a 93-day period suggests a significant per-unit cost. Benchmarking against similar complex control devices is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting that the price achieved reflects market conditions rather than a sole-source premium.
Public Impact
Enhances Department of the Army's capabilities with advanced measuring and controlling devices. Supports national defense objectives through technological procurement. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price (FFP) with a short duration could lead to cost overruns if unforeseen issues arise.
- Lack of detailed technical specifications makes it hard to assess true value for money.
- Limited contract duration may not allow for full system integration and testing.
Positive Signals
- Full and open competition ensures a level playing field for potential bidders.
- Award to a known entity (L3 Technologies) suggests a degree of confidence in their capabilities.
- Clear contract type (FFP) simplifies financial management.
Sector Analysis
The 'Other Measuring and Controlling Device Manufacturing' sector is broad, encompassing a wide range of technologies. Spending in this area often supports defense, aerospace, and industrial automation, with significant R&D investment.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. While L3 Technologies is a large entity, the competitive process may have involved smaller subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, implying oversight from defense procurement agencies. Further oversight would focus on contract performance, delivery schedules, and adherence to specifications.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Firm Fixed Price.
- Limited contract duration may impact full system realization.
- Lack of detailed technical specifications hinders value assessment.
- Unclear if system meets evolving technological requirements.
Tags
other-measuring-and-controlling-device-m, department-of-defense, nh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to L3 TECHNOLOGIES, INC.. STORM-MLRF MONTHS 1-12
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 $14.4 million.
What is the period of performance?
Start: 2007-03-13. End: 2007-06-14.
What specific capabilities does the STORM-MLRF system provide, and how do these align with current operational needs?
The specific capabilities of the STORM-MLRF system are not detailed in the provided data. Understanding its function, such as advanced threat detection or complex environmental monitoring, is crucial to assess its value. Alignment with current operational needs would require knowledge of the Army's strategic priorities and technological gaps it aims to fill with this procurement.
What are the primary risks associated with the Firm Fixed Price contract for this system, given the short duration?
The primary risk with a Firm Fixed Price contract, especially for a complex system like STORM-MLRF over a short 93-day period, is that the contractor may face unexpected technical challenges or scope creep. If costs exceed the fixed price, L3 Technologies might cut corners on quality or performance to maintain profitability, potentially impacting the system's effectiveness. Conversely, the government risks overpaying if the contractor's actual costs are significantly lower than anticipated.
How effective is the 'full and open competition' method in ensuring optimal value for taxpayer money in procuring specialized defense equipment?
Full and open competition is generally the most effective method for ensuring value for taxpayer money as it maximizes the pool of potential bidders, fostering price competition and innovation. However, for highly specialized or technologically advanced equipment, the number of capable bidders might be limited, potentially reducing the competitive pressure. The government must ensure clear technical specifications are provided to enable meaningful comparison and prevent awards based solely on the lowest price without adequate consideration of technical merit.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 9 AKIRA WAY, LONDONDERRY, NH, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,366,300
Exercised Options: $14,366,300
Current Obligation: $14,366,300
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124Q06D0804
IDV Type: IDC
Timeline
Start Date: 2007-03-13
Current End Date: 2007-06-14
Potential End Date: 2007-06-14 00:00:00
Last Modified: 2009-01-23
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