DoD's $30.8M AEHF COMSEC/TRANSEC System Contract Awarded to L3 Technologies
Contract Overview
Contract Amount: $30,781,587 ($30.8M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-04-29
End Date: 2015-03-31
Contract Duration: 1,432 days
Daily Burn Rate: $21.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AEHF COMSEC&TRANSEC SYSTEM (ACTS)
Place of Performance
Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $30.8 million to L3 TECHNOLOGIES, INC. for work described as: AEHF COMSEC&TRANSEC SYSTEM (ACTS) Key points: 1. Contract awarded to L3 Technologies for AEHF COMSEC&TRANSEC SYSTEM (ACTS). 2. The contract value is $30,781,587.46. 3. Awarded by the Department of the Air Force under the Department of Defense. 4. Service category is Computer Facilities Management Services (NAICS 541513).
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $30.8M for a 1432-day duration suggests a significant investment, but without a clear benchmark or comparison, its value is difficult to assess.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have resulted in a higher price than could have been achieved through a competitive bidding process.
Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for this $30.8M contract.
Public Impact
Impacts secure communications for the Advanced Extremely High Frequency (AEHF) satellite system. Ensures the integrity and confidentiality of sensitive defense communications. Supports critical national security operations by maintaining communication security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical national security infrastructure
- Long-term contract duration indicates sustained need
Sector Analysis
This contract falls under IT services, specifically computer facilities management. Spending in this sector is substantial across the DoD, supporting a wide range of critical functions. Benchmarks for similar secure communication system management contracts are often proprietary or difficult to access.
Small Business Impact
The awardee, L3 Technologies, is a large corporation, not a small business. There is no indication that small businesses were involved as subcontractors in this specific contract.
Oversight & Accountability
The contract type (Cost Plus Fixed Fee) requires robust oversight to ensure costs are reasonable and fixed fees are justified. The Department of Defense and Air Force are responsible for monitoring performance and expenditures to ensure accountability.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may have led to inflated costs.
- Cost Plus Fixed Fee contracts carry inherent risks of cost overruns.
- Limited transparency into the specific security services provided.
- Potential for vendor lock-in due to specialized nature of the system.
Tags
computer-facilities-management-services, department-of-defense, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to L3 TECHNOLOGIES, INC.. AEHF COMSEC&TRANSEC SYSTEM (ACTS)
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 $30.8 million.
What is the period of performance?
Start: 2011-04-29. End: 2015-03-31.
What specific security services does the AEHF COMSEC&TRANSEC SYSTEM (ACTS) provide, and how do they align with current and future threats?
The ACTS contract likely encompasses a range of services related to the cryptographic and transmission security of the AEHF satellite system. This includes managing and maintaining secure communication equipment, implementing encryption protocols, and ensuring the overall integrity of the communication links against potential adversaries. The alignment with current and future threats would depend on the specific threat assessments conducted by the DoD and the adaptability of the systems and services provided under this contract.
Given the sole-source nature of the award, what mechanisms were in place to ensure a fair and reasonable price was negotiated?
For sole-source awards, agencies typically rely on detailed cost and technical analyses, including reviewing the contractor's proposed costs, historical pricing data, and market research. They may also engage in rigorous negotiation strategies to achieve a fair and reasonable price. However, without full and open competition, the inherent price discovery benefits are diminished, making robust government negotiation and oversight even more critical.
How does the performance of L3 Technologies on this contract contribute to the overall effectiveness of the AEHF satellite system's security posture?
The effectiveness of L3 Technologies' performance directly impacts the AEHF system's ability to maintain secure and reliable communications. This includes ensuring the confidentiality, integrity, and availability of sensitive data transmitted through the satellite network. Consistent and high-quality service delivery is crucial for preventing breaches, maintaining operational readiness, and safeguarding national security interests reliant on the AEHF system.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA830711R1000
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 1 FEDERAL ST, CAMDEN, NJ, 08103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,215,913
Exercised Options: $31,168,095
Current Obligation: $30,781,587
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $404,172
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-04-29
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2015-03-16
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