Naval Research contract for electronics R&D awarded to L-3 Communications for over $10.8 million

Contract Overview

Contract Amount: $10,846,442 ($10.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-03-19

End Date: 2006-03-19

Contract Duration: 1,461 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200206!000930!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0030 !A!N! !N! !20020319!20060314!008983355!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!640 N 2200 W !SALT LAKE CITY !UT!84116!67000!035!49!SALT LAKE CITY !SALT LAKE !UTAH !+000001526500!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

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

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to L3 TECHNOLOGIES, INC. for work described as: 200206!000930!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0030 !A!N! !N! !20020319!20060314!008983355!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!640 N 2200 W !SALT LAKE CITY !UT!84116!67000!035!49!SALT LAKE CITY !SALT … Key points: 1. Contract focused on advanced technology development in electronics and communication equipment. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Contract duration of approximately four years suggests a significant project scope. 4. The contractor, L-3 Communications, is a well-established entity in the defense sector. 5. Performance was likely assessed against cost-plus-fixed-fee terms, balancing contractor incentive with government oversight. 6. The contract falls under Research and Development, a critical area for technological advancement.

Value Assessment

Rating: good

The contract value of $10.8 million for a four-year R&D effort in electronics and communication equipment appears reasonable within the context of defense research. Benchmarking against similar contracts for advanced technology development would provide a more precise assessment, but the scope suggests a substantial investment in innovation. The cost-plus-fixed-fee structure implies that the government aimed to control costs while incentivizing the contractor to achieve specific objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting that while the competition was broad, specific sources might have been excluded for defined reasons. The presence of multiple bidders, implied by 'full and open,' generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not detailed, but the competition type indicates an effort to solicit a wide range of proposals.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovative solutions from multiple offerors.

Public Impact

The Office of Naval Research benefits from advancements in electronics and communication technology, enhancing naval capabilities. The contract supports the development of cutting-edge equipment and technologies for national defense. The geographic impact is primarily within the defense sector, with potential spillover into the broader technology industry. Workforce implications include employment for engineers, scientists, and technicians involved in research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not managed rigorously.
The 'exclusion of sources' clause warrants further investigation to ensure it did not unduly limit competition.
Ensuring the developed technologies meet evolving naval requirements throughout the contract lifecycle.

Positive Signals

Awarded to a known entity, L-3 Communications, suggesting a level of confidence in their capabilities.
The contract's focus on R&D aligns with strategic goals for technological superiority.
The use of full and open competition, even with exclusions, indicates an effort to leverage market capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on electronics and communication equipment. The market for defense-related R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks would typically be found within the Department of Defense's R&D budgets for similar technological advancements, often measured in the tens to hundreds of millions of dollars for major programs.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the nature of advanced R&D in electronics, it is possible that subcontracting opportunities may exist for specialized small businesses, but this is not detailed in the provided data. The primary awardee, L-3 Communications, is a large corporation, suggesting the main contract was not aimed at direct small business awards.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The cost-plus-fixed-fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific details of oversight activities are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Programs
Defense Electronics Development
Advanced Technology Initiatives
Communication Systems Research

Risk Flags

Potential for cost overruns due to CPFF structure
Need for detailed oversight of R&D expenditures
Ensuring technological relevance throughout development lifecycle

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to L3 TECHNOLOGIES, INC.. 200206!000930!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001402C0030 !A!N! !N! !20020319!20060314!008983355!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!640 N 2200 W !SALT LAKE CITY !UT!84116!67000!035!49!SALT LAKE CITY !SALT LAKE !UTAH !+000001526500!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2002-03-19. End: 2006-03-19.

What was the specific nature of the 'electronics & communication eq-adv tech dev' research conducted under this contract?

The contract data indicates the research and development focused on 'ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV'. While the precise technological advancements are not detailed, this category typically encompasses the exploration and creation of novel electronic systems and communication equipment. This could include areas such as advanced radar systems, secure communication protocols, signal processing technologies, or next-generation electronic warfare capabilities. The goal would be to enhance the operational effectiveness and technological superiority of naval assets through innovation in these critical domains.

How did the 'full and open competition after exclusion of sources' process impact the final contract price and selection?

The 'full and open competition after exclusion of sources' suggests that the initial solicitation was broadly advertised, allowing any qualified source to submit a proposal. However, specific sources were subsequently excluded. The reasons for exclusion are not provided but could relate to security clearances, specific technical capabilities, or prior performance issues. This process aims to balance broad market engagement with the need to ensure only suitable contractors participate. The impact on price and selection depends on how many qualified bidders remained after exclusions; if a robust competition persisted, it likely drove a competitive price. If exclusions significantly narrowed the field, it could have reduced price pressure.

What is the track record of L-3 Communications (now L3Harris Technologies) in fulfilling similar R&D contracts for the Department of Defense?

L-3 Communications, now part of L3Harris Technologies, has a long and extensive history of performing complex research and development contracts for the Department of Defense and other government agencies. They are known for their expertise in areas such as aerospace systems, communications, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR). While specific performance metrics for this particular contract (N0001402C0030) are not detailed here, the company's overall track record indicates a strong capability in delivering advanced technological solutions. Their continued presence and success in the defense sector suggest a generally positive history of contract fulfillment, though individual contract performance can vary.

How does the $10.8 million contract value compare to other R&D spending in naval electronics during the early 2000s?

In the early 2000s, naval electronics R&D spending was substantial, driven by evolving threats and technological advancements. A contract of $10.8 million for advanced technology development would be considered a mid-tier award within the broader R&D landscape. Major naval R&D programs, such as those for new ship systems, aircraft avionics, or advanced weapon systems, often commanded hundreds of millions or even billions of dollars. However, for a specific, focused development effort in a particular niche of electronics or communication, $10.8 million represents a significant investment, indicative of a project with substantial technical scope and potential impact.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the government?

The primary risk for the government with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government bears that additional expense. While the fixed fee provides some incentive for the contractor to manage costs efficiently (as their profit is fixed), it doesn't offer the same level of cost certainty as fixed-price contracts. Rigorous oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline