DoD's $17.5M Sole Source R&D Contract with L3 Technologies Raises Questions on Competition and Value
Contract Overview
Contract Amount: $17,518,389 ($17.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-05-25
End Date: 2012-04-30
Contract Duration: 1,802 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: L3 COMM SOLE SOURCE
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $17.5 million to L3 TECHNOLOGIES, INC. for work described as: L3 COMM SOLE SOURCE Key points: 1. Significant R&D spending of $17.5M awarded without competition. 2. L3 Technologies, Inc. is the sole awardee, limiting market options. 3. Contract duration of 1802 days suggests long-term reliance. 4. Research and Development in Physical, Engineering, and Life Sciences sector. 5. Awarded by Defense Contract Management Agency under the Department of Defense.
Value Assessment
Rating: questionable
The contract value of $17.5M for R&D is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar R&D efforts in the physical, engineering, and life sciences.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was explicitly 'NOT COMPETED' and awarded as a sole source to L3 Technologies, Inc. This lack of competition significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive pressure.
Public Impact
Taxpayers may be overpaying for R&D services due to lack of competition. Limited visibility into the specific R&D outcomes and their impact. Potential for reduced innovation if alternative solutions were not explored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole Source Award
- Lack of Competition
- Long Contract Duration
- High Contract Value
Positive Signals
- Specific R&D focus
- Awarded to established company
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on Physical, Engineering, and Life Sciences. Benchmarking R&D spending is complex due to the unique nature of each project, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided to suggest any subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The 'NOT COMPETED' status suggests that standard competitive oversight processes may have been bypassed. Further review of the justification for the sole-source award is needed to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole Source Award
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
- No Small Business Set-Aside Indicated
Tags
research-and-development-in-the-physical, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to L3 TECHNOLOGIES, INC.. L3 COMM SOLE SOURCE
Who is the contractor on this award?
The obligated recipient is L3 TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.5 million.
What is the period of performance?
Start: 2007-05-25. End: 2012-04-30.
What was the specific justification for awarding this R&D contract as sole source to L3 Technologies, Inc.?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For R&D, this might include proprietary technology, unique expertise, or critical national security needs that only L3 Technologies could fulfill at the time of the award. A thorough review would examine the documentation supporting this claim.
How does the $17.5M contract value compare to similar R&D projects in the physical, engineering, and life sciences sectors, considering it was not competed?
Benchmarking this $17.5M contract value is challenging without competitive data. However, for R&D in these complex fields, large sums are not unusual. The key concern is the lack of competition, which prevents a direct comparison to ascertain if this price was optimal. Independent cost analysis or market research would be needed to assess value for money.
What were the tangible outcomes or deliverables from this 1802-day R&D contract, and did they meet the Department of Defense's objectives effectively?
The effectiveness of this contract hinges on the successful completion of its R&D objectives. Without specific details on deliverables, milestones, and final reports, it's impossible to assess effectiveness. The long duration suggests a significant undertaking, and a post-award review of the project's success against its stated goals would be necessary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,618,389
Exercised Options: $17,618,389
Current Obligation: $17,518,389
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-05-25
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2019-03-19
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