DoD's $10.4M R&D contract for CDMA net technology awarded to L3 Technologies, Inc

Contract Overview

Contract Amount: $10,376,155 ($10.4M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-22

End Date: 2026-04-21

Contract Duration: 1,399 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: COMMON DATA LINK (CDL) CODE DIVISION MULTI-ACCESS (CDMA) NET

Place of Performance

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

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to L3 TECHNOLOGIES, INC. for work described as: COMMON DATA LINK (CDL) CODE DIVISION MULTI-ACCESS (CDMA) NET Key points: 1. Contract value appears reasonable for specialized R&D in communications technology. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 4 years indicates a significant project scope. 5. Focus on R&D in physical sciences aligns with advanced defense capabilities. 6. Awarded by the Air Force, indicating a specific branch requirement.

Value Assessment

Rating: good

The contract value of approximately $10.4 million for research and development in physical sciences is within a typical range for specialized technology projects. Benchmarking against similar R&D contracts for advanced communication systems suggests this pricing is competitive. The firm fixed-price structure further enhances value by capping government liability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized R&D effort. This approach generally promotes price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that the government is not overpaying for specialized research and development services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive advancements in CDMA net technology. The services delivered involve research and development, likely leading to improved communication systems for military operations. The geographic impact is primarily within Utah, where the contractor is located, but the technological advancements could have a global impact on defense capabilities. Workforce implications may include specialized engineers and researchers employed by L3 Technologies, Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for technology to become obsolete if R&D does not keep pace with rapid advancements.
Dependence on a single contractor for critical R&D could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract limits cost escalation risks.
Full and open competition suggests a robust selection process.
Contract duration allows for thorough development and testing of the technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for defense-related R&D is highly specialized, with significant investment from government agencies. Comparable spending benchmarks in this area are difficult to pinpoint due to the unique nature of R&D, but the value aligns with projects aimed at developing next-generation communication technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless L3 Technologies, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through contract award databases, though specific R&D progress details may be sensitive.

Related Government Programs

Advanced Communications Research
Department of Defense Research and Development
Air Force Technology Modernization
CDMA Technology Development

Risk Flags

Research and Development Contract
Potential for Technological Obsolescence
Single Contractor Dependence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to L3 TECHNOLOGIES, INC.. COMMON DATA LINK (CDL) CODE DIVISION MULTI-ACCESS (CDMA) NET

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 $10.4 million.

What is the period of performance?

Start: 2022-06-22. End: 2026-04-21.

What is the specific nature of the CDMA net technology being developed under this contract?

The contract details are limited in public scope, but the classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' combined with the 'CDMA NET' description suggests the project focuses on advancing Code Division Multiple Access (CDMA) network technologies. This could involve improving signal processing, enhancing data transmission rates, increasing network capacity, or developing new applications for military communication systems that utilize CDMA principles. The specific end-use or technological breakthrough targeted by L3 Technologies, Inc. is not publicly detailed but likely aims to enhance secure and reliable battlefield communications.

How does the $10.4 million contract value compare to similar R&D efforts in advanced communications?

Benchmarking R&D contracts is challenging due to the inherent uniqueness of each project's scope, objectives, and technological novelty. However, for specialized R&D in advanced communication systems, a value of approximately $10.4 million over nearly four years is considered moderate. Larger, more complex R&D programs can easily reach tens or hundreds of millions of dollars. This contract's value suggests a focused effort on a specific aspect of CDMA net technology, rather than a broad, foundational research program. The firm fixed-price nature also implies a well-defined scope, which can help in cost control compared to cost-plus contracts often used in early-stage, high-risk R&D.

What are the potential risks associated with this R&D contract for the Department of Defense?

Key risks include technological obsolescence, where the developed technology may be surpassed by rapid advancements before or shortly after deployment. There's also the risk of performance not meeting expectations, especially in R&D where outcomes are not guaranteed. Dependence on a single contractor, L3 Technologies, Inc., for this specific development could pose a risk if the company faces financial instability, management issues, or fails to deliver as per the contract. Furthermore, the sensitive nature of defense communication technology could make it a target for cyber threats or intellectual property theft if not adequately secured throughout the R&D lifecycle.

What is L3 Technologies, Inc.'s track record in defense R&D contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a substantial and established track record in providing advanced technologies and services to the Department of Defense and other government agencies. They are known for their work in areas such as aerospace systems, electronic warfare, communications, and intelligence, surveillance, and reconnaissance (ISR). Their history includes numerous contracts, many of which involve complex R&D and system integration. While specific performance metrics for every contract are not publicly available, their continued success in securing significant defense contracts indicates a generally positive performance history and capability in delivering sophisticated technological solutions.

How might this contract contribute to the Air Force's overall modernization goals?

This contract directly supports the Air Force's modernization goals by investing in the research and development of advanced communication technologies. Improved CDMA net capabilities can enhance the reliability, security, and efficiency of communication networks essential for modern air and space operations. This could translate to better command and control, improved data sharing among platforms, and more resilient communication links in contested environments. By funding R&D, the Air Force aims to stay ahead of adversaries and ensure its technological superiority, which is a core tenet of its modernization strategy.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $13,418,941

Exercised Options: $10,429,047

Current Obligation: $10,376,155

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $70,739

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872618D0010

IDV Type: IDC

Timeline