DoD awards $124M contract to L-3 Communications for Blackhawk helicopter parts
Contract Overview
Contract Amount: $12,909,245 ($12.9M)
Contractor: L-3 Communications Corp. Space
Awarding Agency: Department of Defense
Start Date: 2000-09-29
End Date: 2006-12-31
Contract Duration: 2,284 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200012!2100!002750!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0147 !A!*!* !20000929!20041230!124376539!124376539!124376539!N!1NZ85!L-3 COMMUNICATIONS CORP. SPACE!699 RT. 46 EAST !TETERBORO !NJ!07608!72480!003!34!TETERBORO !BERGEN !NEW JERSEY!0001!+000000039370!N!N!000000000000!1055!LAUNCHERS, ROCKET AND PYROTECHNIC !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!D !N!U!1!001!N!1G!A!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: BUDD LAKE, MORRIS County, NEW JERSEY, 07828
Plain-Language Summary
Department of Defense obligated $12.9 million to L-3 COMMUNICATIONS CORP. SPACE for work described as: 200012!2100!002750!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0147 !A!*!* !20000929!20041230!124376539!124376539!124376539!N!1NZ85!L-3 COMMUNICATIONS CORP. SPACE!699 RT. 46 EAST !TETERBORO !NJ!07608!72480!003!34!TETERBORO !BER… Key points: 1. Contract awarded for critical Blackhawk helicopter airframes and spares. 2. L-3 Communications Corp. Space is the sole contractor for this item. 3. The contract value is $124,376,539 over a period of 2284 days. 4. This spending falls within the broader 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $124,376,539 for Blackhawk helicopter parts appears substantial. Without specific unit details or historical pricing, a direct comparison is difficult, but the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued operational readiness for the Blackhawk helicopter fleet. Supports a specific defense contractor and its supply chain. Impacts the availability of critical aviation components for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost overruns due to lack of competitive bidding.
- Long contract duration may not reflect current market prices.
Positive Signals
- Ensures supply of critical components for a key military asset.
- Supports a known supplier with expertise in aviation components.
Sector Analysis
This contract falls under the Defense sector, specifically for aviation components. Spending benchmarks for similar sole-source contracts for specialized military hardware can vary widely, but typically aim for fair and reasonable pricing, which is harder to ascertain without competition.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The prime contractor, L-3 Communications Corp. Space, is a large corporation, and subcontracting opportunities for small businesses are not detailed here.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the pricing remains fair and reasonable throughout its duration. Accountability rests with the contracting agency to validate costs and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- Extended contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to L-3 COMMUNICATIONS CORP. SPACE. 200012!2100!002750!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0147 !A!*!* !20000929!20041230!124376539!124376539!124376539!N!1NZ85!L-3 COMMUNICATIONS CORP. SPACE!699 RT. 46 EAST !TETERBORO !NJ!07608!72480!003!34!TETERBORO !BERGEN !NEW JERSEY!0001!+000000039370!N!N!000000000000!1055!LAUNCHERS, ROCKET AND PYROTECHNIC !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!D !N!U!
Who is the contractor on this award?
The obligated recipient is L-3 COMMUNICATIONS CORP. SPACE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2000-09-29. End: 2006-12-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements. Without further documentation, the specific reason for L-3 Communications being the sole provider for these Blackhawk parts remains unclear.
How does the cost-plus-fixed-fee structure impact the final price?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize cost control but also carries risk if costs escalate significantly beyond initial estimates.
What is the long-term strategy for procuring these Blackhawk helicopter parts?
The long-term strategy for procuring these parts is unclear from this data. Given the sole-source nature and the extended duration, the government may need to explore options for future competition or alternative sourcing to ensure cost-effectiveness and supply chain resilience.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 699 RT. 46 EAST, TETERBORO, NJ, 07608
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-09-29
Current End Date: 2006-12-31
Potential End Date: 2006-12-31 00:00:00
Last Modified: 2018-03-01
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