DoD's $57M R&D Contract with L3 Technologies for Tactical Services Shows Fair Competition
Contract Overview
Contract Amount: $57,136,897 ($57.1M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-31
End Date: 2020-06-30
Contract Duration: 1,399 days
Daily Burn Rate: $40.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION-L3 COMMUNICATIONS - WEST
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $57.1 million to L3 TECHNOLOGIES, INC. for work described as: IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION-L3 COMMUNICATIONS - WEST Key points: 1. The contract awarded to L3 Technologies for tactical service field demonstrations represents a significant investment in R&D. 2. Competition was full and open, suggesting a robust price discovery process. 3. The cost-plus-incentive fee structure aims to align contractor performance with government objectives. 4. The R&D sector, particularly in physical and engineering sciences, often involves complex and evolving requirements.
Value Assessment
Rating: good
The contract's total award value of $57.1M appears reasonable for a multi-year R&D effort. Benchmarking against similar complex R&D contracts would provide further insight into its value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.
Public Impact
Advancement in protected tactical service capabilities for the Air Force. Potential for improved communication and operational effectiveness in challenging environments. Investment in cutting-edge research and development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus contracts.
- Scope creep in R&D projects can impact final costs.
- Dependence on a single contractor for critical technology development.
Positive Signals
- Full and open competition ensures market forces are leveraged.
- Incentive fee structure encourages performance and efficiency.
- Focus on R&D aligns with future defense needs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to higher risk and longer development cycles.
Small Business Impact
The data indicates this was a definitive contract awarded to L3 Technologies, Inc. There is no specific information provided regarding small business participation or subcontracting opportunities within this award.
Oversight & Accountability
The contract's duration and cost-plus-incentive fee structure suggest ongoing oversight is necessary to manage performance and costs effectively. The Department of Defense's Inspector General would likely monitor such significant R&D investments.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Overruns
- Scope Creep
- Technological Obsolescence
- Performance Below Expectations
Tags
research-and-development-in-the-physical, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.1 million to L3 TECHNOLOGIES, INC.. IGF::OT::IGF PROTECTED TACTICAL SERVICE FIELD DEMONSTRATION-L3 COMMUNICATIONS - WEST
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 $57.1 million.
What is the period of performance?
Start: 2016-08-31. End: 2020-06-30.
What specific technological advancements were achieved through this contract, and how do they compare to the initial objectives?
The contract aimed to demonstrate protected tactical service field capabilities. Quantifying the specific advancements requires reviewing technical reports and performance metrics. Comparing these to the initial objectives would reveal the success of the R&D investment and whether it met the Air Force's requirements for enhanced communication or operational effectiveness in secure environments.
What were the primary cost drivers for this contract, and were there any significant cost variances from the initial estimates?
As a cost-plus-incentive fee contract, cost drivers likely included labor, materials, and overhead associated with research and development. Significant cost variances would be detailed in contract performance reports. The incentive fee structure suggests that deviations from target costs could impact the final profit for L3 Technologies.
How effectively did the full and open competition process ensure the government received the best value for its investment in protected tactical services?
Full and open competition generally promotes value by allowing multiple vendors to compete, driving down prices and fostering innovation. Assessing the effectiveness requires examining the number of bids received, the price differences between bidders, and the ultimate performance of the chosen solution against its intended purpose and cost.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 2 FEDERAL ST, CAMDEN, NJ, 08102
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: $73,954,553
Exercised Options: $57,136,897
Current Obligation: $57,136,897
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-31
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2020-06-02
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