Air Force awards $24.7M for Video Data Link III, supporting FMS cases
Contract Overview
Contract Amount: $24,744,833 ($24.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-24
End Date: 2026-10-30
Contract Duration: 919 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BILATERAL ORDER FOR VIDEO DATA LINK III REQUIREMENTS IN SUPPORT OF FMS CASES AT-D-DAV A2, AT-D-DAV A3, LG-D-QAD, CN-D-OAQ, AND SP-D-DAS
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to L3 TECHNOLOGIES, INC. for work described as: BILATERAL ORDER FOR VIDEO DATA LINK III REQUIREMENTS IN SUPPORT OF FMS CASES AT-D-DAV A2, AT-D-DAV A3, LG-D-QAD, CN-D-OAQ, AND SP-D-DAS Key points: 1. Significant award for specialized communication equipment. 2. Sole-source award raises questions about price discovery. 3. Long-term contract (919 days) with a fixed price. 4. Supports Foreign Military Sales (FMS) cases, indicating international collaboration.
Value Assessment
Rating: questionable
The award value of $24.7 million for a delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for this specialized equipment.
Public Impact
Ensures critical communication capabilities for supported FMS cases. Potential for follow-on contracts if the system proves effective. Impacts the technological readiness of allied nations through FMS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Supports critical FMS requirements
- Long-term contract provides stability
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is often driven by defense modernization and communication upgrades.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to bid.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and that the government is receiving value for its investment.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Dependency on a single vendor
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to L3 TECHNOLOGIES, INC.. BILATERAL ORDER FOR VIDEO DATA LINK III REQUIREMENTS IN SUPPORT OF FMS CASES AT-D-DAV A2, AT-D-DAV A3, LG-D-QAD, CN-D-OAQ, AND SP-D-DAS
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 $24.7 million.
What is the period of performance?
Start: 2024-04-24. End: 2026-10-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. The government should have conducted a price analysis, comparing the proposed price to historical data, other government contracts, or commercial price lists, to ensure reasonableness despite the absence of competition.
What are the specific risks associated with relying on a single vendor for this critical communication system?
Risks include potential vendor lock-in, limited leverage in future negotiations, and vulnerability to supply chain disruptions or vendor business decisions. If L3 Technologies faces financial difficulties or strategic shifts, it could impact the delivery and support of this vital system for FMS cases.
How does this Video Data Link III system contribute to the overall effectiveness of the supported FMS cases?
This system likely enhances situational awareness and command and control capabilities for allied forces by providing real-time video data. Its effectiveness is crucial for mission success in scenarios where shared visual intelligence is a key operational requirement.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $24,744,833
Exercised Options: $24,744,833
Current Obligation: $24,744,833
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $3,041,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862924DB001
IDV Type: IDC
Timeline
Start Date: 2024-04-24
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2026-03-18
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