DoD's $23.5M Commercial Space Internet Experimentation Contract Awarded to L3 Technologies
Contract Overview
Contract Amount: $23,523,350 ($23.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-12-06
End Date: 2026-03-30
Contract Duration: 2,306 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to L3 TECHNOLOGIES, INC. for work described as: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET Key points: 1. Contract focuses on R&D for physical and engineering sciences, excluding nano/biotech. 2. L3 Technologies, Inc. secured the definitive contract. 3. The contract aims to explore commercial space internet capabilities for defense applications. 4. This initiative falls under the Air Force's purview within the Department of Defense. 5. The project duration is 2306 days, ending March 2026.
Value Assessment
Rating: good
The contract value of $23.5M for a 2306-day R&D effort appears reasonable given the specialized nature of space internet experimentation. Benchmarking against similar complex R&D contracts in the defense sector would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The use of commercial space internet for defense experimentation could lead to cost savings compared to developing proprietary systems, ultimately benefiting taxpayers.
Public Impact
Enhances military communication capabilities through advanced commercial technologies. Supports innovation in the rapidly evolving space and telecommunications sectors. Potential for dual-use applications benefiting both defense and civilian infrastructure. Contributes to the Department of Defense's modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on commercial providers may introduce security vulnerabilities.
- Long project duration increases risk of technological obsolescence.
- Cost overruns are possible in complex R&D projects.
Positive Signals
- Leverages cutting-edge commercial technology.
- Promotes competition and innovation in the space industry.
- Potential for significant improvements in communication resilience.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541715. Spending in this area is crucial for maintaining technological superiority, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
While this contract was awarded to L3 Technologies, Inc., it's unclear if significant subcontracting opportunities exist for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The definitive contract structure allows for defined milestones and deliverables, facilitating accountability throughout the project's lifecycle.
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
- Cybersecurity vulnerabilities of commercial systems.
- Potential for vendor lock-in with commercial providers.
- Technological obsolescence during long project duration.
- Integration challenges with existing military networks.
- Dependence on non-US controlled space assets.
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 $23.5 million to L3 TECHNOLOGIES, INC.. DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET
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 $23.5 million.
What is the period of performance?
Start: 2019-12-06. End: 2026-03-30.
What specific performance metrics will be used to evaluate the success of this commercial space internet experimentation?
The contract likely includes specific performance metrics tied to data throughput, latency, reliability, and security under various operational conditions. These metrics will be crucial for assessing the effectiveness of commercial space internet solutions for defense applications and informing future procurement decisions.
How will the Department of Defense mitigate potential cybersecurity risks associated with using commercial space internet infrastructure?
Mitigation strategies may include robust encryption protocols, secure network segmentation, continuous monitoring for threats, and strict access control measures. The DoD will likely collaborate closely with L3 Technologies to ensure the commercial solutions meet stringent security requirements before and during deployment.
What is the projected long-term cost-benefit analysis of integrating commercial space internet compared to traditional military satellite communication systems?
The long-term cost-benefit analysis will likely consider factors such as reduced infrastructure investment, faster deployment times, and scalability offered by commercial solutions versus the potentially higher upfront costs but greater control of dedicated military systems. This experimentation aims to provide data to inform that analysis.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $42,444,182
Exercised Options: $23,523,350
Current Obligation: $23,523,350
Actual Outlays: $608,949
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $3,460,317
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-12-06
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 00:00:00
Last Modified: 2025-10-21
More Contracts from L3 Technologies, Inc.
- 63 Each of the Following Hardware Items for the Bradley Fighting Vehicle System (bfvs): Thor Hmpt 800HP Reman Transmission, NSN 2520-01-626-5061 TCM Electronic Assembly, NSN 2520-01-627-6468 Shift Tower, NSN 2520-01-465-5184 TEC Cable, NSN 6150-01-631-6134 — $456.5M (Department of Defense)
- Purchase of 538 EA E-Rovers — $401.1M (Department of Defense)
- Federal Contract — $395.7M (Department of Defense)
- CEC System Production and Repair — $315.9M (Department of Defense)
- Undersea Warfare Training Range (uswtr) Program Requirements Will Provide the Capability for Undersea Warfare (USW) Training and Assessment in Shallow Water and Deep Water Under Adverse Conditions for AIR, Surface, and Subsurface Forces — $267.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)