DoD Awards $11.5M for Rover 6S Kits to L3 Technologies, Raising Competition Concerns

Contract Overview

Contract Amount: $11,498,880 ($11.5M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2025-04-30

Contract Duration: 29 days

Daily Burn Rate: $396.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUBJECT: ROVER 6S BASE KITS AND ACCESSORIES

Plain-Language Summary

Department of Defense obligated $11.5 million to L3 TECHNOLOGIES, INC. for work described as: SUBJECT: ROVER 6S BASE KITS AND ACCESSORIES Key points: 1. Significant award to a single vendor highlights potential lack of competition. 2. Focus on specialized communications equipment suggests a niche market. 3. Short contract duration may indicate a need for immediate deployment or a pilot program. 4. The award represents a small fraction of the overall sector spending.

Value Assessment

Rating: questionable

The award amount of $11.5 million for a one-month delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for specialized communication equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to L3 Technologies, Inc. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $11.5 million award means taxpayers may not be receiving the best possible value.

Public Impact

Taxpayers may be overpaying for essential communication equipment due to the absence of competitive bidding. The Department of Defense relies on specialized equipment, and ensuring fair pricing is crucial for budget efficiency. This award could set a precedent for future sole-source contracts in this technology area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Short contract duration

Positive Signals

Award to established vendor
Addresses specific DoD need

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is often driven by defense and national security needs, with specialized equipment commanding premium prices.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this sole-source award.

Oversight & Accountability

The lack of competition raises questions about the oversight applied to the justification for a sole-source procurement. Further review may be needed to ensure proper procedures were followed.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for overpayment due to sole-source award
Lack of transparency in procurement process
Limited opportunity for small business involvement
Risk of vendor lock-in for future needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to L3 TECHNOLOGIES, INC.. SUBJECT: ROVER 6S BASE KITS AND ACCESSORIES

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 $11.5 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-04-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details, it's impossible to confirm the validity of this justification for the Rover 6S Base Kits and Accessories.

What is the potential cost impact of this sole-source award compared to a competitive process?

Sole-source awards often result in higher costs due to the absence of competitive pressure. Benchmarking against similar, competitively procured systems or obtaining independent cost estimates would be necessary to quantify the exact cost impact, but it is likely higher than a competed contract.

How does the short duration of the contract impact the overall value and effectiveness?

A short, one-month delivery order suggests an immediate need or a limited scope. While it might address an urgent requirement, it doesn't allow for long-term strategic sourcing or the development of sustained competitive relationships, potentially impacting future value and availability.

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: $11,498,880

Exercised Options: $11,498,880

Current Obligation: $11,498,880

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $442,953

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