Air Force awards $35.8M for C-HOBS sensors, with L3 Technologies Inc. securing the contract
Contract Overview
Contract Amount: $35,876,000 ($35.9M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-14
End Date: 2027-12-31
Contract Duration: 1,142 days
Daily Burn Rate: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COCKPIT SELECTABLE HEIGHT OF BURST SENSOR (C-HOBS)
Place of Performance
Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103
Plain-Language Summary
Department of Defense obligated $35.9 million to L3 TECHNOLOGIES, INC. for work described as: COCKPIT SELECTABLE HEIGHT OF BURST SENSOR (C-HOBS) Key points: 1. The contract value of $35.8 million represents a significant investment in advanced sensor technology. 2. L3 Technologies, Inc. has a substantial presence in the defense sector, indicating potential for reliable execution. 3. The firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor. 4. The duration of the contract (over 3 years) allows for sustained development and delivery of critical components. 5. This award falls under the Ammunition (except Small Arms) Manufacturing NAICS code, highlighting its role in ordnance systems. 6. The contract's focus on selectable height of burst sensors points to advancements in munitions effectiveness and safety.
Value Assessment
Rating: good
Benchmarking the value of this contract requires specific data on comparable C-HOBS sensor systems. However, the $35.8 million award for a multi-year delivery of advanced sensor components appears reasonable given the specialized nature of defense technology. The firm-fixed-price structure shifts cost overruns to the contractor, which is generally favorable for the government. Further analysis would involve comparing unit costs to similar sensor procurements or internal development costs if available.
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 specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. A full and open competition is the preferred method for government contracting as it maximizes the potential for obtaining the best value.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures that the government is not limited to a single provider, potentially leading to cost savings.
Public Impact
The Department of the Air Force is the primary beneficiary, receiving advanced sensor technology for its munitions. This contract will deliver critical components for selectable height of burst (C-HOBS) sensors, enhancing munition capabilities. The geographic impact is primarily within New Jersey, where L3 Technologies, Inc. has operations, and wherever the Air Force deploys these enhanced munitions. The contract supports jobs within L3 Technologies, Inc. and potentially its supply chain, contributing to the defense industrial workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if scope changes significantly, despite firm-fixed-price.
- Dependence on a single contractor for a critical component could pose supply chain risks.
- Ensuring the technology meets evolving operational requirements throughout the contract duration.
Positive Signals
- Firm-fixed-price contract aligns incentives for contractor efficiency.
- Full and open competition suggests a competitive award process.
- Award to an established defense contractor like L3 Technologies, Inc. indicates a degree of confidence in their capabilities.
Sector Analysis
The defense sector, particularly the segment focused on munitions and advanced sensor technology, is characterized by high R&D investment and stringent performance requirements. The market for such specialized components is often dominated by a few key players with the necessary expertise and security clearances. This contract for C-HOBS sensors fits within the broader trend of modernizing military hardware to improve precision and effectiveness on the battlefield. Comparable spending benchmarks would typically be found within the Department of Defense's overall budget for ordnance and electronic warfare systems.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the specialized nature of the C-HOBS sensor technology and the prime contractor, L3 Technologies, Inc., it is unlikely that small businesses would be the primary recipients of this award. However, L3 Technologies, Inc. may engage small businesses as subcontractors, contributing to the broader small business ecosystem within the defense supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes contractor cost overruns. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Ammunition Procurement
- Air Force Sensor Systems Development
- Munitions Technology Modernization
- L3 Technologies, Inc. Defense Contracts
Risk Flags
- Potential for technology obsolescence
- Integration complexity with existing systems
- Supply chain vulnerability for specialized components
Tags
defense, department-of-defense, department-of-the-air-force, ammunition, sensor-technology, l3-technologies, firm-fixed-price, full-and-open-competition, new-jersey, multi-year-contract, ordnance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.9 million to L3 TECHNOLOGIES, INC.. COCKPIT SELECTABLE HEIGHT OF BURST SENSOR (C-HOBS)
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 Air Force).
What is the total obligated amount?
The obligated amount is $35.9 million.
What is the period of performance?
Start: 2024-11-14. End: 2027-12-31.
What is the historical track record of L3 Technologies, Inc. in delivering similar sensor systems to the Department of Defense?
L3 Technologies, Inc. (now part of L3Harris Technologies) has a long-standing history of providing advanced electronic systems, including sensors and communication equipment, to the Department of Defense. They have been involved in numerous programs across various branches of the military, often focusing on areas like intelligence, surveillance, and reconnaissance (ISR), electronic warfare, and avionics. While specific details on their past performance for C-HOBS or directly comparable sensor systems would require deeper contract-level analysis, their broad experience in defense electronics suggests a foundational capability. Past performance reviews and contract award histories would provide more granular insights into their reliability, quality of delivery, and adherence to schedules and budgets on previous, similar procurements.
How does the awarded value of $35.8 million compare to the estimated market value for similar selectable height of burst sensor systems?
Determining the precise market value for specialized defense components like C-HOBS sensors is challenging without access to proprietary pricing data and detailed technical specifications. However, the $35.8 million awarded to L3 Technologies, Inc. for a multi-year delivery (ending in late 2027) suggests a significant investment. If this contract covers a substantial quantity of sensors or includes extensive research and development, the total value could be justified. To benchmark effectively, one would need to compare this contract's unit cost (if derivable) against other government procurements of similar sensor types, or against pricing from commercial off-the-shelf (COTS) systems if applicable, while accounting for the unique military-grade requirements and customization involved. The firm-fixed-price nature also implies that the contractor has assessed the market and believes this price is sufficient to cover costs and provide a reasonable profit.
What are the primary risks associated with the development and deployment of the C-HOBS sensor system under this contract?
Key risks for the C-HOBS sensor system include technological maturity and integration challenges. Ensuring the 'selectable height of burst' functionality operates reliably across various environmental conditions and integrates seamlessly with existing munitions and fire control systems is critical. There's also a risk of scope creep if operational requirements evolve significantly during the contract period, potentially impacting cost and schedule despite the firm-fixed-price structure. Supply chain disruptions for specialized components could affect delivery timelines. Furthermore, the effectiveness and safety of the system must be rigorously validated through testing to mitigate risks associated with unintended detonations or failures in the field. The contractor's ability to manage these technical and programmatic risks will be crucial for successful contract performance.
What is the expected program effectiveness and impact of the C-HOBS sensors on Air Force operations?
The C-HOBS sensors are expected to significantly enhance the effectiveness of Air Force munitions by allowing for adjustable detonation points in the air. This capability provides greater flexibility in targeting, enabling munitions to detonate at an optimal height above or near the target. This can improve target kill probability, reduce collateral damage by precisely controlling the blast radius, and increase safety for ground troops or friendly forces by allowing for stand-off engagement. For Air Force operations, this translates to more precise strike capabilities, potentially reducing the number of munitions required to achieve mission success and improving overall operational efficiency and safety. The system's ability to adapt to different target types and scenarios is a key aspect of its expected effectiveness.
How has historical spending on ammunition and related sensor technology by the Department of the Air Force trended over the past five years?
Historical spending by the Department of the Air Force on ammunition and related sensor technology has generally trended upwards, reflecting a continuous effort to modernize military capabilities and enhance precision strike options. Significant investments are consistently allocated to advanced munitions, including those with improved guidance, targeting, and detonation mechanisms. The push for 'smart' munitions and systems that offer greater battlefield flexibility, such as selectable height of burst, has driven specific procurement programs. While overall defense budgets can fluctuate, the strategic importance of advanced ordnance ensures sustained funding. Analyzing specific budget lines for 'ammunition manufacturing,' 'ordnance components,' and 'electronic warfare/sensor systems' over the past five years would reveal the scale and growth trajectory of such investments, indicating a consistent demand for technologies like C-HOBS.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 2 FEDERAL ST, CAMDEN, NJ, 08102
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: $35,876,000
Exercised Options: $35,876,000
Current Obligation: $35,876,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821319D0006
IDV Type: IDC
Timeline
Start Date: 2024-11-14
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-09-05
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