DoD's $24.7M Anti-Jam Modem Development contract awarded to L3 Technologies shows strong competition

Contract Overview

Contract Amount: $24,685,430 ($24.7M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-01

End Date: 2024-01-17

Contract Duration: 868 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: ARMY AND AIR FORCE ANTI-JAM MODEM DEVELOPMENT HALF

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to L3 TECHNOLOGIES, INC. for work described as: ARMY AND AIR FORCE ANTI-JAM MODEM DEVELOPMENT HALF Key points: 1. The contract leverages a fixed-price incentive structure, aligning contractor and government interests for cost control. 2. Full and open competition suggests a robust market for this specialized technology, potentially driving innovation. 3. The contract's duration of 868 days indicates a significant development effort. 4. Awarded to L3 Technologies, a known defense contractor, suggests a degree of confidence in their capabilities. 5. The North American Industry Classification System (NAICS) code 334220 points to a focus on wireless communications equipment manufacturing. 6. The contract's value is moderate within the context of defense R&D spending.

Value Assessment

Rating: good

The contract's fixed-price incentive (FPI) type suggests an effort to control costs while allowing for adjustments based on performance. Benchmarking against similar R&D contracts for specialized communication equipment is challenging without more specific data on technological complexity and market maturity. However, the total award value of approximately $24.7 million over its period of performance appears reasonable for a development effort of this nature, especially considering the specialized nature of anti-jam modems.

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 approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The presence of multiple bidders, though not explicitly detailed here, is implied by the 'full and open' designation, which is a positive sign for price discovery and value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring the government receives the best possible value for its investment.

Public Impact

The U.S. Army and Air Force are the primary beneficiaries, receiving advanced anti-jam modem technology. This contract supports the development of critical communication systems for military operations. The geographic impact is primarily within New Jersey, where the contractor is located, potentially supporting local high-tech jobs. The development effort could lead to advancements in secure and reliable military communications, impacting national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance targets are not met, common in FPI contracts.
Dependence on a single contractor for a critical technology development phase.
Technological obsolescence if development timelines are significantly delayed.

Positive Signals

Fixed-price incentive structure encourages cost efficiency.
Awarded under full and open competition, suggesting market viability and competitive pricing.
Contractor's established presence in the defense sector implies technical expertise.

Sector Analysis

This contract falls within the broader defense electronics and communications sector, specifically focusing on specialized radio and wireless communication equipment manufacturing. The market for anti-jamming technology is driven by military requirements for secure and reliable communication in contested electromagnetic environments. Spending in this niche is often characterized by high R&D investment and long development cycles, with significant government funding due to national security implications. Comparable spending benchmarks would typically involve other advanced military communication system development contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of anti-jam modem development, it is likely that larger, established defense contractors with specific expertise and facilities were best positioned to compete. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this award information.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a fixed-price incentive contract, performance and cost tracking would be crucial. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Military Communications Systems Development
Electronic Warfare Technology
Radio and Wireless Equipment Manufacturing
Department of Defense Research and Development

Risk Flags

Potential for cost growth inherent in FPI contracts.
Technological obsolescence risk in long development cycles.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to L3 TECHNOLOGIES, INC.. ARMY AND AIR FORCE ANTI-JAM MODEM DEVELOPMENT HALF

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 $24.7 million.

What is the period of performance?

Start: 2021-09-01. End: 2024-01-17.

What is the specific technological advancement expected from this anti-jam modem development?

The contract aims to develop and enhance anti-jam capabilities for modems used in military communication systems. This likely involves research into advanced signal processing techniques, robust modulation schemes, and hardware designs that can resist or mitigate jamming attempts. The goal is to ensure reliable data transmission even in environments with significant electronic interference, which is critical for maintaining command and control, situational awareness, and operational effectiveness of military platforms.

How does the fixed-price incentive (FPI) structure typically work, and what are its implications for this contract?

A Fixed-Price Incentive (FPI) contract establishes a target cost, target profit, and a price ceiling. The final price is adjusted based on the contractor's performance relative to the target cost. If the contractor's final cost is below the target cost, both the government and contractor share in the savings according to a pre-negotiated formula. Conversely, if the final cost exceeds the target cost, the contractor absorbs a portion of the overrun, up to the price ceiling. For this contract, the FPI structure incentivizes L3 Technologies to control costs while meeting performance specifications, aiming for a balance between cost efficiency and technological advancement.

What is L3 Technologies' track record in developing similar communication or anti-jamming technologies?

L3 Technologies (now part of L3Harris Technologies) has a significant and established track record in the defense sector, including extensive experience in developing advanced communication systems, electronic warfare capabilities, and specialized electronic components. They are known for providing solutions for secure and resilient communications for various military branches. While specific details on their past anti-jam modem projects are not provided here, their overall portfolio suggests they possess the necessary expertise and capabilities to undertake this type of development contract successfully.

How does the $24.7 million award compare to historical spending on similar anti-jam technology development?

Without specific comparative data on anti-jam modem development contracts, it's difficult to provide a precise benchmark. However, $24.7 million is a substantial but not extraordinary amount for a multi-year R&D effort in a specialized defense technology area. The cost is influenced by factors such as the complexity of the required technology, the maturity of existing solutions, the number of development phases, and the specific performance requirements. This figure appears consistent with the investment typically required for developing advanced, mission-critical military hardware and software.

What are the potential risks associated with the 'delivery order' aspect of this contract?

The term 'delivery order' typically implies that this contract is a type of indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle where specific orders for goods or services are placed against a pre-established contract. The primary risk associated with delivery orders is ensuring that the total value of orders does not exceed the contract's ceiling or that the government fully utilizes the contracted capacity if minimums are guaranteed. For this specific award, it appears to be a single delivery order against a larger contract vehicle, representing the total value for the specified period. The risk is more about the execution of the development within the defined scope and timeline.

What does the NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) signify for this contract?

The NAICS code 334220 indicates that the primary business activity of the contractor, L3 Technologies, in relation to this contract, is the manufacturing of radio and television broadcasting and wireless communications equipment. This classification confirms the contract's focus on the development and potential production of hardware related to wireless communication systems, specifically modems designed for robust performance in challenging environments, aligning with the 'anti-jam' requirement.

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

Solicitation ID: FA880821R0001

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $24,685,430

Exercised Options: $24,685,430

Current Obligation: $24,685,430

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