DoD's $37.6M FEURY Task Order 7 to L3 Technologies awarded without competition
Contract Overview
Contract Amount: $37,599,264 ($37.6M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-13
End Date: 2024-02-18
Contract Duration: 1,041 days
Daily Burn Rate: $36.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: FULL MOTION VIDEO EXTENSION AND UNIFIED RELAY PROGRAM (FEURY) TASK ORDER 7
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $37.6 million to L3 TECHNOLOGIES, INC. for work described as: FULL MOTION VIDEO EXTENSION AND UNIFIED RELAY PROGRAM (FEURY) TASK ORDER 7 Key points: 1. Significant spending on a single vendor for video extension and relay. 2. Lack of competition raises concerns about price discovery and value. 3. Potential for higher costs due to sole-source award. 4. Focus on audio/video equipment manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $37.6 million for Task Order 7 is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar audio and video equipment manufacturing contracts.
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 less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $37.6 million contract means taxpayers may not be receiving the best possible value for their investment.
Public Impact
Taxpayers may be overpaying for audio and video equipment due to the absence of competitive bidding. The Department of the Air Force's reliance on a single vendor for this capability warrants scrutiny. Future procurements of this nature should prioritize competitive strategies to ensure cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value
Positive Signals
- Specific task order for a defined program (FEURY)
Sector Analysis
The Department of Defense's spending on audio and video equipment manufacturing, particularly for specialized programs like FEURY, is common. However, the benchmark for this specific type of equipment and its integration within a relay program is difficult to establish without competitive data.
Small Business Impact
The data indicates this contract was awarded to L3 Technologies, Inc., a large business. There is no indication of small business participation in this specific task order, which is a missed opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Further oversight is needed to ensure the government is obtaining fair and reasonable prices and exploring all competitive options.
Related Government Programs
- Audio and Video Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in price determination
- Missed opportunity for small business participation
Tags
audio-and-video-equipment-manufacturing, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to L3 TECHNOLOGIES, INC.. FULL MOTION VIDEO EXTENSION AND UNIFIED RELAY PROGRAM (FEURY) TASK ORDER 7
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 $37.6 million.
What is the period of performance?
Start: 2021-04-13. End: 2024-02-18.
What specific technical capabilities or unique requirements justified a sole-source award for FEURY Task Order 7, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique technical requirements, proprietary technology, or the unavailability of other sources. Without a competitive process, the government relies on contractor-provided cost data and its own cost analysis to determine price reasonableness. This often involves detailed audits and negotiations to ensure the price reflects the actual cost of performance plus a reasonable profit, but it inherently lacks the downward pressure that competition provides.
What is the long-term strategy for the FEURY program, and will future task orders also be sole-sourced, potentially leading to continued above-market pricing?
The long-term strategy for the FEURY program is crucial for understanding the ongoing impact of this procurement approach. If future task orders are also sole-sourced, it suggests a systemic reliance on L3 Technologies, Inc. This could lead to sustained higher costs for taxpayers if competitive alternatives are not actively sought or developed. A review of the program's acquisition strategy is recommended to ensure future competition is maximized.
How does the $37.6 million expenditure on this single task order compare to the overall budget for the FEURY program and similar audio/video relay systems procured competitively?
Comparing this $37.6 million task order to the FEURY program's total budget and to competitively procured similar systems is essential for assessing value. If this single order represents a significant portion of the program's funding, it amplifies concerns about the lack of competition. Benchmarking against competitive contracts for analogous audio/video relay systems would reveal potential cost savings missed due to the sole-source award.
Industry Classification
NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing
Product/Service Code: IT AND TELECOM - APLLICATIONS
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: $52,409,286
Exercised Options: $52,409,286
Current Obligation: $37,599,264
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
Start Date: 2021-04-13
Current End Date: 2024-02-18
Potential End Date: 2024-02-18 00:00:00
Last Modified: 2025-04-26
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