DoD's $33.7M R&D Contract for Biotechnology Development Awarded to L3 Technologies Under Full and Open Competition
Contract Overview
Contract Amount: $33,720,844 ($33.7M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-12-18
End Date: 2025-09-18
Contract Duration: 1,735 days
Daily Burn Rate: $19.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: NGJ LB CB1 DEVELOPMENT
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to L3 TECHNOLOGIES, INC. for work described as: NGJ LB CB1 DEVELOPMENT Key points: 1. Contract awarded to L3 Technologies for $33.7M for R&D in Biotechnology. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 1735 days, ending in September 2025. 4. Research and Development in Biotechnology (except Nanobiotechnology) is the focus area. 5. The contract type is Cost Plus Incentive Fee, common for R&D projects.
Value Assessment
Rating: good
The contract value of $33.7M for a 5-year R&D effort appears reasonable given the specialized nature of biotechnology research. Benchmarking against similar R&D contracts in this niche sector would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, which can lead to future technological advancements and economic benefits, though the immediate return on investment is uncertain.
Public Impact
Advancement in biotechnology research could lead to new medical treatments or industrial applications. Investment in R&D supports innovation and potentially creates high-skilled jobs. The specific outcomes and benefits of this research will become clearer as the project progresses. Competition in this sector can drive innovation and efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly.
- The specific R&D outcomes are inherently uncertain, posing a risk to the return on investment.
- Reliance on a single awardee for a significant R&D project.
Positive Signals
- Awarded under full and open competition.
- Focus on a critical R&D area (Biotechnology).
- Long-term contract duration allows for sustained research effort.
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a field characterized by high innovation, significant investment, and long development cycles. Spending benchmarks in this area are highly variable depending on the specific research focus.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to L3 Technologies, Inc., a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts, including progress reviews and financial audits, should be in place.
Related Government Programs
- Research and Development in Biotechnology (except Nanobiotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns in CPIF contracts.
- Inherent uncertainty of R&D outcomes.
- Lack of specific performance metrics in provided data.
- No small business participation noted.
Tags
research-and-development-in-biotechnolog, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to L3 TECHNOLOGIES, INC.. NGJ LB CB1 DEVELOPMENT
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 $33.7 million.
What is the period of performance?
Start: 2020-12-18. End: 2025-09-18.
What are the specific research objectives and expected deliverables for this biotechnology development contract?
The specific research objectives and expected deliverables are not detailed in the provided data. However, given the NAICS code 541714 (Research and Development in Biotechnology), the contract likely aims to advance scientific knowledge or develop new biotechnological products, processes, or services. Further details would typically be found in the contract's statement of work.
How will the performance incentives in the Cost Plus Incentive Fee structure be measured and rewarded?
The performance incentives for a Cost Plus Incentive Fee (CPIF) contract are typically tied to achieving specific technical milestones, cost targets, or delivery schedules. The government and the contractor negotiate these metrics beforehand. If the contractor meets or exceeds these targets, they receive a higher profit margin than the base fee; conversely, failing to meet them results in a reduced profit.
What is the potential long-term impact of this R&D investment on national security or economic competitiveness?
Investments in biotechnology R&D can have significant long-term impacts. For national security, this could include advancements in medical countermeasures, biodefense, or novel materials. Economically, successful research can lead to new industries, job creation, and a competitive edge in a rapidly evolving global market. The specific impact depends heavily on the success of the research outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)
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
Solicitation ID: N0001919R0069
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 640 N 2200 W, SALT LAKE CITY, UT, 84116
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: $495,530,542
Exercised Options: $495,530,542
Current Obligation: $33,720,844
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $771,323
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-18
Current End Date: 2025-09-18
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-24
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