DoD Awards $29.5M for Communication Equipment Repair, Following Competed Action
Contract Overview
Contract Amount: $29,523,705 ($29.5M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-11-07
End Date: 2013-02-27
Contract Duration: 4,495 days
Daily Burn Rate: $6.6K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200111!016917!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4012 !A!N!*!N!BASIC !20001107!20030531!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORP !1 FEDERAL ST !CAMDEN !NJ!08103!10000!007!34!CAMDEN !CAMDEN !NEW JERSEY!+000018293923!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !811213!*!*!3! ! ! !*!*!*!B!*!*!A! !C !N!J!1!001!N!1G!Z!Y!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103
Plain-Language Summary
Department of Defense obligated $29.5 million to L3 TECHNOLOGIES, INC. for work described as: 200111!016917!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4012 !A!N!*!N!BASIC !20001107!20030531!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORP !1 FEDERAL ST !CAMDEN !NJ!08103!10000!007!34!CAMDEN !CAMDE… Key points: 1. Contract awarded to L-3 Communications Corp for communication equipment repair. 2. The award follows a competed action, suggesting prior market engagement. 3. Potential risk exists if the follow-on action did not maintain competitive pressure. 4. Spending is concentrated in the Defense sector, specifically for naval systems.
Value Assessment
Rating: good
The contract value of $29.5 million over approximately 12 years appears reasonable for communication equipment repair and maintenance services. Benchmarking against similar long-term, specialized service contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' but the specific competition method for this award is not detailed. If the follow-on was not competed, it could limit price discovery and potentially increase costs.
Taxpayer Impact: Taxpayer funds are being used for essential defense communication equipment maintenance. The value appears reasonable, but the level of competition directly impacts the efficiency of taxpayer spending.
Public Impact
Ensures operational readiness of naval communication systems. Supports a specific defense contractor, L-3 Communications Corp. Contributes to the broader defense industrial base. Long-term nature of the contract provides stability for the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition method for follow-on action.
- Long contract duration could mask inefficiencies.
- Potential for price creep if competition was reduced.
Positive Signals
- Follow-on to a competed action suggests prior market vetting.
- Firm Fixed Price contract type provides cost certainty.
- Contract supports critical naval communication infrastructure.
Sector Analysis
This contract falls within the Defense sector, specifically for IT and communication equipment maintenance. Spending benchmarks for similar long-term service contracts in defense are typically in the millions, making this award size consistent with sector norms.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, L-3 Communications Corp, is a large business, suggesting that subcontracting opportunities may exist for small businesses within the defense supply chain.
Oversight & Accountability
The contract is managed by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve contract performance monitoring, quality assurance, and financial reviews to ensure compliance and value for money.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for reduced competition in follow-on action.
- Long contract duration may obscure performance issues.
- Reliance on a single contractor for critical systems.
- Lack of detailed cost breakdown for assessment.
Tags
communication-equipment-repair-and-maint, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to L3 TECHNOLOGIES, INC.. 200111!016917!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4012 !A!N!*!N!BASIC !20001107!20030531!618019632!008898884!008898843!N!L-3 COMMUNICATIONS CORP !1 FEDERAL ST !CAMDEN !NJ!08103!10000!007!34!CAMDEN !CAMDEN !NEW JERSEY!+000018293923!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !811213!*!*!3! ! ! !*!*!*!B!*!*!A!
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 $29.5 million.
What is the period of performance?
Start: 2000-11-07. End: 2013-02-27.
What was the specific competition method used for this follow-on contract, and how did it compare to the original competed action?
The provided data states 'FOLLOW ON TO COMPETED ACTION' but does not specify the method. Understanding if this was a sole-source extension, a limited competition, or another full and open competition is crucial. If competition was reduced, it could impact price efficiency and innovation compared to the initial award.
How does the per-unit cost or service rate for this contract compare to industry benchmarks for similar communication equipment repair and maintenance services?
Without specific line-item details or service rates, a direct per-unit cost comparison is not possible. However, the total contract value of $29.5 million over its duration suggests a significant investment. Benchmarking against similar long-term service contracts within the DoD or defense industry would be necessary to assess cost-effectiveness.
What is the assessed risk of performance failure or cost overruns given the long duration and specialized nature of the services?
The risk is moderate. While the Firm Fixed Price structure mitigates cost overrun risk for the government, the long duration (over 12 years) increases the potential for performance degradation or the need for contract modifications. Specialized nature of communication equipment requires skilled personnel, and any disruption could impact naval readiness.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1 FEDERAL ST, CAMDEN, NJ, 08103
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-11-07
Current End Date: 2013-02-27
Potential End Date: 2013-02-27 00:00:00
Last Modified: 2024-05-10
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