DoD Awards $53.5M Contract for Minelayer/Minesweeper Electronics to EDO Corporation

Contract Overview

Contract Amount: $53,488,872 ($53.5M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-04-26

End Date: 2013-04-04

Contract Duration: 3,996 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200208!022773!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6316 !A!N! !N! !20020426!20020930!790527915!790527915!001876440!N!EDO CORPORATION !1500 NEW HORIZONS BOULEVAR!NORTH AMITYVIL !NY!11701!51000!047!36!NEW YORK !KINGS !NEW YORK !+000007117821!N!N!000000000000!1906!MINELAYERS AND MINESWEEPERS !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!V!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! !Y! ! !0001!

Place of Performance

Location: SOUTH SALT LAKE, SALT LAKE County, UTAH, 84115

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $53.5 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 200208!022773!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6316 !A!N! !N! !20020426!20020930!790527915!790527915!001876440!N!EDO CORPORATION !1500 NEW HORIZONS BOULEVAR!NORTH AMITYVIL !NY!11701!51000!047!36!NEW YORK !KINGS… Key points: 1. Contract awarded to EDO Corporation for electronics and communication systems. 2. Significant contract value of $53.5 million over its life. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. Sector is Defense, specifically related to naval systems manufacturing.

Value Assessment

Rating: fair

The contract value of $53.5 million is substantial. Benchmarking against similar contracts for naval electronics is difficult without more specific data on the scope of work, but the duration and type of contract (Cost Plus Incentive Fee) suggest potential for cost overruns.

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 competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for defense procurement. The 'Cost Plus Incentive Fee' structure means that while there are incentives for cost control, the final price could exceed initial estimates if performance targets are not met efficiently.

Public Impact

Enhances naval capabilities for mine countermeasures. Supports the defense industrial base and associated jobs. Contributes to national security through advanced maritime technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contract type can lead to higher final costs.
  • Long contract duration (over 11 years) increases risk of scope creep or obsolescence.
  • Limited information on specific performance metrics and their impact on final cost.

Positive Signals

  • Awarded under full and open competition.
  • Contract aims to improve critical naval systems.
  • Potential for technological advancement in mine warfare.

Sector Analysis

This contract falls within the Defense sector, specifically in the manufacturing of electronic systems for naval vessels. Spending in this area is driven by national security needs and technological advancements in military hardware.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as subcontractors. The primary awardee is EDO Corporation, a significant defense contractor.

Oversight & Accountability

The contract was managed by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve contract performance monitoring, financial audits, and adherence to technical specifications.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Incentive Fee structure.
  • Long contract duration.
  • Potential for technology obsolescence.
  • Limited public detail on specific system capabilities.

Tags

search-detection-navigation-guidance-aer, department-of-defense, ut, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.5 million to L3HARRIS TECHNOLOGIES, INC.. 200208!022773!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6316 !A!N! !N! !20020426!20020930!790527915!790527915!001876440!N!EDO CORPORATION !1500 NEW HORIZONS BOULEVAR!NORTH AMITYVIL !NY!11701!51000!047!36!NEW YORK !KINGS !NEW YORK !+000007117821!N!N!000000000000!1906!MINELAYERS AND MINESWEEPERS !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is L3HARRIS 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 $53.5 million.

What is the period of performance?

Start: 2002-04-26. End: 2013-04-04.

What specific electronic systems are being procured, and how do they compare to current industry standards?

The data indicates the contract is for 'Electronics and Communication' systems related to 'Minelayers and Minesweepers'. Without detailed specifications, it's challenging to assess their modernity. However, given the contract award date (2002) and duration extending to 2013, the systems might be based on technologies prevalent in the early 2000s, potentially requiring upgrades or replacements sooner than anticipated.

What are the key performance indicators for the 'Cost Plus Incentive Fee' structure, and what are the potential cost implications if these are not met?

The 'Cost Plus Incentive Fee' (CPIF) structure ties a portion of the contractor's profit to achieving specific performance targets, often related to cost, schedule, or technical performance. If EDO Corporation exceeds target costs without meeting performance incentives, the government pays the incurred costs plus a reduced fee, potentially leading to higher overall expenditure than initially projected.

How has the performance of EDO Corporation on similar defense contracts influenced this award, and what is the track record regarding cost and schedule adherence?

The provided data does not include EDO Corporation's specific performance history on prior contracts. A comprehensive analysis would require reviewing past performance evaluations, any incurred penalties or bonuses under CPIF contracts, and adherence to delivery schedules for similar defense systems to fully assess the risk associated with this award.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2002-04-26

Current End Date: 2013-04-04

Potential End Date: 2013-04-04 00:00:00

Last Modified: 2024-04-27

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