Air Force awards $17.5M contract for anti-jam modem production, with delivery expected by June 2026

Contract Overview

Contract Amount: $17,510,898 ($17.5M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2026-06-01

Contract Duration: 979 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIR FORCE ARMY ANTI-JAM MODEM BLOCK I PRODUCTION

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to L3 TECHNOLOGIES, INC. for work described as: AIR FORCE ARMY ANTI-JAM MODEM BLOCK I PRODUCTION Key points: 1. Contract value appears reasonable given the duration and scope of modem production. 2. Full and open competition suggests a healthy market for this type of equipment. 3. Potential risks include production delays or technical performance issues. 4. This contract supports the Air Force's need for robust communication systems. 5. The award falls within the broader defense electronics manufacturing sector.

Value Assessment

Rating: good

The contract value of approximately $17.5 million over a period of nearly 3 years (979 days) suggests a moderate per-year expenditure. Benchmarking against similar defense electronics production contracts would be necessary for a definitive value assessment, but the price appears within a reasonable range for specialized military hardware. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This process generally fosters competitive pricing and encourages innovation. The number of bidders is not specified, but the open competition suggests a sufficient number to ensure fair market price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the value for the government's investment.

Public Impact

The primary beneficiaries are the U.S. Air Force, receiving advanced anti-jam modems. The contract delivers essential communication equipment for military operations. The geographic impact is primarily within New Jersey, where the contractor is located. Workforce implications include skilled manufacturing and engineering roles at L3 Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for production delays impacting operational readiness.
Risk of technical obsolescence if technology evolves rapidly.
Dependence on a single contractor for this specific modem block.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market and potential for quality.
Contract duration allows for phased production and testing.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, specifically focusing on communication equipment. The North American Industry Classification System (NAICS) code 334220, 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,' encompasses companies that produce such specialized hardware. The market for military communication systems is characterized by high technological requirements, stringent quality standards, and significant government investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal, unless L3 Technologies voluntarily engages small businesses in its supply chain for components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Communication Systems
Defense Electronic Warfare Systems
Military Radio and Modem Technology
Tactical Communication Equipment

Risk Flags

Production Schedule Risk
Technical Performance Risk
Supply Chain Disruption Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to L3 TECHNOLOGIES, INC.. AIR FORCE ARMY ANTI-JAM MODEM BLOCK I PRODUCTION

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 $17.5 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-06-01.

What is the track record of L3 Technologies, Inc. in delivering similar defense communication equipment?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant history of providing advanced electronic systems, including communication and avionics equipment, to the Department of Defense and other government agencies. They are known for their expertise in areas such as secure communications, electronic warfare, and sensor systems. While specific performance data for past anti-jam modem contracts is not detailed here, their established presence and broad capabilities suggest a strong capacity to meet the technical requirements of this award. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar programs, would provide further insight into their reliability for this specific contract.

How does the awarded value compare to similar anti-jam modem contracts or related communication hardware procurements?

Without access to a comprehensive database of comparable anti-jam modem contracts, a precise benchmark is difficult. However, the total contract value of $17.5 million spread over approximately 32 months (2023-2026) equates to roughly $547,000 per month or approximately $1.7 million per year. This figure needs to be considered in the context of the complexity and quantity of modems being produced. Specialized, high-reliability military communication hardware often commands higher unit costs than commercial equivalents due to stringent testing, certification, and performance requirements. The firm fixed-price nature suggests the government has negotiated a price deemed acceptable for the defined scope.

What are the primary technical risks associated with the production of anti-jam modems for the Air Force?

Key technical risks in producing anti-jam modems include ensuring robust performance against sophisticated electronic warfare threats, maintaining signal integrity in challenging electromagnetic environments, and achieving the required data throughput and reliability. Integration with existing or future Air Force platforms is another critical factor, requiring strict adherence to interface specifications. Furthermore, the rapid evolution of jamming techniques necessitates that the modems incorporate adaptable or upgradeable architectures to maintain effectiveness over their lifecycle. Ensuring compliance with stringent military standards for shock, vibration, temperature, and radiation is also a significant technical challenge.

What is the expected impact of these anti-jam modems on the Air Force's operational capabilities?

The procurement of these anti-jam modems is expected to significantly enhance the resilience and reliability of Air Force communication networks. In contested electromagnetic environments, traditional communication systems can be disrupted or denied by enemy jamming efforts. Anti-jam modems employ advanced signal processing and spread spectrum techniques to resist such interference, ensuring that critical command and control, intelligence, surveillance, and reconnaissance (ISR) data can be transmitted and received. This improved communication capability is vital for maintaining situational awareness, coordinating air operations, and ensuring mission success across various operational scenarios, from tactical engagements to strategic C2.

What has been the historical spending trend for anti-jam modems or similar communication equipment by the Department of Defense?

Historical spending on anti-jam modems and related secure/resilient communication technologies by the Department of Defense has been substantial and generally increasing, driven by the recognition of the growing threat from sophisticated adversaries' electronic warfare capabilities. The DoD consistently invests in modernizing its communication infrastructure to ensure operational effectiveness in contested environments. While specific figures for 'anti-jam modems' as a distinct category can be difficult to isolate from broader communication systems spending, overall budgets for tactical data links, satellite communications, and electronic warfare systems reflect a sustained commitment. This $17.5 million award aligns with this ongoing trend of prioritizing resilient communication solutions.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 11 FEDERAL ST, CAMDEN, NJ, 08103

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: $17,510,898

Exercised Options: $17,510,898

Current Obligation: $17,510,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA880820D0002

IDV Type: IDC

Timeline