DoD awards $39.8M to L3 Technologies for Audio/Video Equipment Manufacturing support, no competition

Contract Overview

Contract Amount: $39,801,382 ($39.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-17

End Date: 2019-04-17

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF SYSTEM INTEGRATOR AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to L3 TECHNOLOGIES, INC. for work described as: IGF::OT::IGF SYSTEM INTEGRATOR AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT Key points: 1. Significant contract value awarded without competition. 2. L3 Technologies is the sole awardee. 3. Potential for higher costs due to lack of competitive bidding. 4. Contract falls under Audio and Video Equipment Manufacturing sector.

Value Assessment

Rating: questionable

The contract value is substantial. Without competitive benchmarks, assessing pricing fairness is difficult. The 'COST PLUS FIXED FEE' structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no competition. This significantly limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium for these services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The DoD relies on a single contractor for critical audio/video support. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Specific contractor identified
Contract awarded by DoD

Sector Analysis

This contract is within the Audio and Video Equipment Manufacturing sector. Spending in this sector can vary widely based on technological advancements and defense needs. Benchmarks are difficult without comparable competitive contracts.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were subcontracting opportunities.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and costs are reasonable. The Defense Contract Management Agency is responsible for oversight.

Related Government Programs

Audio and Video Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type may lead to cost overruns.
Lack of transparency in pricing.
Potential for reduced value for taxpayer dollars.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to L3 TECHNOLOGIES, INC.. IGF::OT::IGF SYSTEM INTEGRATOR AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT

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 $39.8 million.

What is the period of performance?

Start: 2019-04-17. End: 2019-04-17.

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

The justification for a sole-source award typically involves specific circumstances, such as the unavailability of other sources, urgent needs, or unique capabilities possessed by only one contractor. Without further documentation, the precise reason remains unclear, but it directly impacts the competitive landscape and potential for cost savings.

What are the potential risks associated with a cost-plus fixed fee contract in this context?

Cost-plus fixed fee contracts carry risks of cost overruns if the contractor's costs exceed initial estimates, as the government absorbs these increases while the contractor receives a predetermined fee. This structure can disincentivize cost control by the contractor, especially in a sole-source scenario where competitive pressure is absent.

How effectively is L3 Technologies meeting the performance requirements under this contract?

Assessing effectiveness requires access to performance reports, quality metrics, and user feedback. Given the sole-source nature and lack of competition, it's crucial to ensure robust performance monitoring by the DoD to guarantee value for money and mission accomplishment, despite the absence of market-driven incentives.

Industry Classification

NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $73,598,430

Exercised Options: $46,486,382

Current Obligation: $39,801,382

Actual Outlays: $6,068,669

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $6,241,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872618D0002

IDV Type: IDC

Timeline