DoD Awards $20.7M for Towed Sonar Array Systems, L-3 Communications Wins Sole-Source Contract

Contract Overview

Contract Amount: $20,763,340 ($20.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-12-06

End Date: 2019-04-11

Contract Duration: 6,335 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200203!020021!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6200 !A!N! !N! !20011206!20050131!016556495!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!15825 ROXFORD ST !SYLMAR !CA!91342!77546!037!06!SYLMAR !LOS ANGELES !CALIFORNIA!+000000100000!N!N!000001585010!L058!TECH REP SVCS/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2GTP!TOWED SONAR ARRAY !334290!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !B!B!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: SYLMAR, LOS ANGELES County, CALIFORNIA, 91342

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to L3 TECHNOLOGIES, INC. for work described as: 200203!020021!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6200 !A!N! !N! !20011206!20050131!016556495!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!15825 ROXFORD ST !SYLMAR !CA!91342!77546!037!06!SYLMAR !LOS A… Key points: 1. The contract value of $20.7 million is for technical representative services and communication equipment related to towed sonar arrays. 2. L-3 Communications Corporation, now L3 Technologies, Inc., was awarded this sole-source contract, indicating a lack of competition. 3. The contract duration was significantly extended from its original end date, raising questions about initial planning and execution. 4. The primary sector for this spending is Defense, specifically related to electronics and communication equipment.

Value Assessment

Rating: questionable

The contract value of $20.7 million for technical representative services and communication equipment is difficult to benchmark without specific details on the scope of services and equipment provided. The extended duration suggests potential scope creep or unforeseen issues impacting cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition and extended contract duration may result in taxpayers paying more than necessary for these specialized sonar systems and associated services.

Public Impact

Naval operations rely on advanced sonar systems for surveillance and defense, making the procurement of such equipment critical. The sole-source nature of this award could impact the development of a competitive market for towed sonar arrays. Extended contract periods can sometimes indicate challenges in project management or evolving technological requirements. The Department of Defense's spending on specialized communication equipment highlights ongoing investments in military technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Significant contract extension beyond original end date
Potential for cost overruns due to lack of competition and extended duration

Positive Signals

Procurement supports critical naval defense capabilities
Contract awarded to a known entity with relevant expertise

Sector Analysis

This contract falls within the Defense sector, specifically concerning specialized electronics and communication equipment for naval applications. Spending benchmarks for towed sonar arrays are highly specific and not readily available, but significant investments are typical for advanced military technology.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. This procurement did not appear to prioritize small business participation.

Oversight & Accountability

The extended duration of this contract warrants oversight to ensure continued justification and effective management of taxpayer funds. Accountability for the original planning and any subsequent changes to the contract's scope and timeline is crucial.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Significant contract extension
Lack of transparency on justification for sole-source
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to L3 TECHNOLOGIES, INC.. 200203!020021!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6200 !A!N! !N! !20011206!20050131!016556495!008898884!008898843!N!L-3 COMMUNICATIONS CORPORATION!15825 ROXFORD ST !SYLMAR !CA!91342!77546!037!06!SYLMAR !LOS ANGELES !CALIFORNIA!+000000100000!N!N!000001585010!L058!TECH REP SVCS/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2GTP!TOWED SONAR ARRAY !334290!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 $20.8 million.

What is the period of performance?

Start: 2001-12-06. End: 2019-04-11.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reasons. However, the lack of competition inherently limits price discovery and potentially increases costs for the government, making robust justification essential for taxpayer accountability.

How did the significant extension of the contract's end date impact the overall cost and effectiveness of the towed sonar array systems?

Extending a contract's duration beyond its original scope can lead to increased costs due to prolonged labor, potential scope creep, and inflation. The effectiveness could be impacted if the extended period was due to unforeseen technical challenges or if the technology became outdated during the extended period. A thorough review would be needed to assess if the extended duration provided value or resulted in inefficiencies.

What is the current market landscape for towed sonar array technology, and could future procurements benefit from a more competitive approach?

The market for advanced defense technologies like towed sonar arrays can be specialized, with a limited number of capable providers. However, even in niche markets, fostering competition through strategies like market research, phased procurements, or encouraging new entrants can drive innovation and cost savings. Future procurements should explore all viable competitive avenues to ensure the best value for taxpayer dollars.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15825 ROXFORD ST, SYLMAR, CA, 91342

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline