DoD's $25.6M L3 Technologies Contract for Custom Computer Programming Services Lacks Competition

Contract Overview

Contract Amount: $25,615,508 ($25.6M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-16

End Date: 2019-09-30

Contract Duration: 1,109 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ACAT III, BIG SAFARI, NCCT V5.2

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to L3 TECHNOLOGIES, INC. for work described as: ACAT III, BIG SAFARI, NCCT V5.2 Key points: 1. Significant contract value of $25.6 million awarded to L3 Technologies. 2. Lack of competition raises concerns about potential overspending and value. 3. Custom Computer Programming Services sector is broad; specific service details are crucial. 4. Contract duration of over 1100 days suggests a long-term need.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the $25.6 million price reflects fair market value for custom computer programming.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage for the government, potentially leading to inflated costs.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these services, as there was no market pressure to drive down the price.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract suggests a critical need for these services within the Air Force. Transparency in the justification for a sole-source award is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost Plus Fixed Fee Contract Type
Sole-Source Award Justification Unclear

Positive Signals

Specific service delivery to Department of the Air Force
Contract awarded to a known entity (L3 Technologies)

Sector Analysis

This contract falls under Custom Computer Programming Services (NAICS 541511), a broad category. Spending in this sector can vary widely based on complexity and duration. Without more detail on the specific services, benchmarking is difficult.

Small Business Impact

The contract was awarded to L3 Technologies, Inc., and the data indicates it was not set aside for small businesses. Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The ACAT III designation suggests a moderate level of program sensitivity and oversight. However, the sole-source nature of this delivery order warrants close scrutiny to ensure proper justification and value for money.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks transparency and competitive pressure.
Cost Plus Fixed Fee structure carries inherent risk of cost escalation.
Potential for contractor to inflate costs without strong oversight.
Lack of defined metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to L3 TECHNOLOGIES, INC.. ACAT III, BIG SAFARI, NCCT V5.2

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 $25.6 million.

What is the period of performance?

Start: 2016-09-16. End: 2019-09-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must demonstrate that only one source can meet the requirement or that exceptional circumstances preclude competition. Without this information, it's impossible to assess if the government acted appropriately or if taxpayer funds were potentially mismanaged by avoiding a competitive process.

How does the Cost Plus Fixed Fee structure ensure cost control and prevent contractor overruns in this specific custom programming project?

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fixed fee, especially if the base cost is not well-defined. Robust government oversight, clear performance metrics, and detailed cost tracking are essential to mitigate this risk. The effectiveness of this structure depends heavily on the government's ability to manage the contract and verify incurred costs.

What are the key performance indicators (KPIs) for this contract, and how is the effectiveness of the custom computer programming services being measured?

Measuring the effectiveness of custom computer programming requires clearly defined KPIs tied to project deliverables, functionality, and user satisfaction. Without insight into these metrics, it's difficult to ascertain if the $25.6 million investment is yielding the desired outcomes for the Department of the Air Force. Effective oversight should include regular performance reviews against these KPIs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 1700 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,615,508

Exercised Options: $25,615,508

Current Obligation: $25,615,508

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862014G3043

IDV Type: BOA

Timeline