DoD Awards L3 Technologies $23.8M for E-4B SSHF Upgrade, Focusing on R&D

Contract Overview

Contract Amount: $23,836,458 ($23.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-22

End Date: 2026-04-01

Contract Duration: 1,987 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 199

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROVIDE SUPPORT FOR E-4B SURVIVABLE SUPER HIGH FREQUENCY (SSHF) UPGRADE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to L3 TECHNOLOGIES, INC. for work described as: PROVIDE SUPPORT FOR E-4B SURVIVABLE SUPER HIGH FREQUENCY (SSHF) UPGRADE Key points: 1. Contract awarded to L3 Technologies for critical E-4B aircraft survivable super high frequency (SSHF) upgrade. 2. Significant investment in Research and Development (NAICS 541715) for advanced communication systems. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The $23.8 million award for an E-4B upgrade appears to be a specialized R&D effort. Benchmarking is difficult without specific technical details, but the Cost Plus Fixed Fee structure warrants close monitoring for cost efficiency compared to similar complex system development contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing, though the specialized nature of the E-4B SSHF upgrade may limit the number of truly capable proposers.

Taxpayer Impact: Taxpayer funds are being used for a critical national security upgrade, aiming to enhance communication survivability for high-value assets.

Public Impact

Enhances the survivability and operational capability of the E-4B 'Doomsday Plane'. Supports advanced research and development in secure, high-frequency communication technologies. Ensures continued communication resilience for national leadership during crises. The upgrade is crucial for maintaining strategic command and control capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of small business participation noted.
Long contract duration (1987 days) increases risk of scope creep and cost escalation.

Positive Signals

Awarded under full and open competition.
Focus on critical national security infrastructure.
Contract supports advanced R&D capabilities.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is vital for technological advancement and maintaining a competitive edge, with significant government investment typically seen in defense-related R&D.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss=false, sb=false). This is common for large, specialized defense contracts requiring extensive resources and specific expertise, potentially limiting opportunities for smaller innovative firms.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Air Force to ensure costs remain reasonable and the project stays within scope. Regular performance reviews and audits will be critical for accountability.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No small business participation.
Specialized and complex upgrade with inherent R&D risks.
Potential for cost escalation due to evolving technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to L3 TECHNOLOGIES, INC.. PROVIDE SUPPORT FOR E-4B SURVIVABLE SUPER HIGH FREQUENCY (SSHF) UPGRADE

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 $23.8 million.

What is the period of performance?

Start: 2020-10-22. End: 2026-04-01.

What is the specific technological advancement this SSHF upgrade aims to achieve, and how does it compare to current capabilities?

The upgrade likely focuses on enhancing the E-4B's ability to maintain secure, high-frequency communications under adverse conditions, such as nuclear attack or electronic warfare. This could involve incorporating more resilient encryption, advanced signal processing, or new antenna technologies to ensure command and control survivability, surpassing current limitations in bandwidth or resistance to jamming.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure value for money?

The Department of Defense must implement stringent cost controls, detailed performance metrics, and regular audits. Establishing clear milestones and incentivizing efficiency through fixed fee adjustments or performance bonuses can help manage costs. Close monitoring of contractor expenditures and progress is essential to prevent scope creep and ensure the final cost aligns with the expected value.

How will the effectiveness of this SSHF upgrade be measured post-completion to ensure it meets the intended survivability and operational requirements?

Effectiveness will be measured through rigorous testing and validation protocols, including simulated mission scenarios and environmental stress tests. Key performance indicators will likely focus on communication link reliability, data throughput, resistance to interference and jamming, and overall system uptime under various threat conditions. Post-deployment operational feedback and performance monitoring will also be crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA861221R5007

Offers Received: 199

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $23,836,458

Exercised Options: $23,836,458

Current Obligation: $23,836,458

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $14,142,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline