DoD Awards $35.2M for Global Satellite Communications Turnkey System to L3 Technologies
Contract Overview
Contract Amount: $35,228,082 ($35.2M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-15
End Date: 2026-09-30
Contract Duration: 1,507 days
Daily Burn Rate: $23.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GLOBAL SATELLITE COMMUNICATIONS TURNKEY SYSTEM
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14623
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $35.2 million to L3 TECHNOLOGIES, INC. for work described as: GLOBAL SATELLITE COMMUNICATIONS TURNKEY SYSTEM Key points: 1. Contract awarded to L3 Technologies for a satellite communications system. 2. Significant value of $35.2 million over a 4-year period. 3. No competition was involved in this award. 4. The sector is Information Technology, specifically satellite telecommunications.
Value Assessment
Rating: fair
The contract value of $35.2 million for a turnkey satellite communications system appears to be within a reasonable range for complex, specialized systems. However, without specific performance metrics or detailed cost breakdowns, a precise valuation against similar contracts is challenging.
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 potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the satellite communications system.
Public Impact
Ensures critical satellite communication capabilities for the Department of Defense. Supports national security objectives through reliable global connectivity. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Essential service provision
- Established contractor
Sector Analysis
The IT sector, particularly satellite telecommunications, is vital for modern defense operations. Spending in this area is often high due to the complexity and specialized nature of the technology involved.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors. Future opportunities should explore avenues for small business participation.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to ensure the system meets requirements and that the pricing remains justified throughout the contract's life, especially given the sole-source nature.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price scrutiny.
- Potential for cost overruns without competitive pressure.
- Long contract duration increases exposure to market changes.
- Lack of transparency on specific system capabilities and performance metrics.
Tags
satellite-telecommunications, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.2 million to L3 TECHNOLOGIES, INC.. GLOBAL SATELLITE COMMUNICATIONS TURNKEY SYSTEM
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 $35.2 million.
What is the period of performance?
Start: 2022-08-15. End: 2026-09-30.
What specific technical capabilities does this turnkey system provide, and how do they align with current and future Air Force operational needs?
The contract specifies a 'Global Satellite Communications Turnkey System' for satellite telecommunications. While the exact technical specifications are not detailed here, such systems typically provide end-to-end communication solutions, including satellite terminals, network integration, and potentially ground support. The alignment with Air Force needs would depend on the specific mission requirements for secure, worldwide communication, which are critical for global operations and command and control.
Given the sole-source nature, what mechanisms are in place to ensure the contractor, L3 Technologies, is providing fair and reasonable pricing throughout the contract period?
For sole-source contracts, agencies typically rely on contractor cost and pricing data, along with government cost analysis, to determine fair and reasonable pricing. This may involve negotiations, audits, and potentially the use of independent government cost estimates. The contract type (Firm Fixed Price) also places some risk on the contractor to manage costs effectively.
What is the anticipated impact of this system on the operational readiness and effectiveness of Air Force units relying on satellite communications?
A turnkey global satellite communications system is expected to significantly enhance operational readiness by providing reliable, secure, and widespread communication infrastructure. This can improve command and control, intelligence sharing, and logistical support across various theaters of operation. The effectiveness will hinge on the system's performance, uptime, and integration with existing Air Force networks.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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
Parent Company: L3harris Technologies, Inc
Address: 1350 JEFFERSON RD, ROCHESTER, NY, 14623
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: $35,228,083
Exercised Options: $35,228,083
Current Obligation: $35,228,082
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2022-08-15
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-01-27
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