DoD Awards $29.3M for TCDL (MST STE) Equipment to L3 Technologies, Inc

Contract Overview

Contract Amount: $29,314,035 ($29.3M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-14

End Date: 2026-07-31

Contract Duration: 2,724 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TCDL (MST STE) EQUIPMENT

Place of Performance

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

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to L3 TECHNOLOGIES, INC. for work described as: TCDL (MST STE) EQUIPMENT Key points: 1. Significant contract value of $29.3 million awarded to a single vendor. 2. L3 Technologies, Inc. is the sole awardee, raising questions about competition. 3. The contract spans over 7 years, indicating a long-term need. 4. The sector is focused on Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $29.3 million for TCDL (MST STE) equipment is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is optimal or reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition for a nearly $30 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (over 7 years) locks in this vendor relationship. Lack of transparency in the sole-source award process can erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of price competition

Positive Signals

Specific equipment need identified
Award to established company

Sector Analysis

The contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this area is critical for defense communications, but competitive pricing is essential to ensure value.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the Department of Defense is receiving fair value and that the justification for not competing is robust.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to overpayment.
Long contract duration increases long-term cost risk.
Sole-source awards can indicate potential market failures or insufficient planning.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to L3 TECHNOLOGIES, INC.. TCDL (MST STE) EQUIPMENT

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2019-02-14. End: 2026-07-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. A thorough review would be needed to understand the specific technical, operational, or other unique requirements that precluded a competitive solicitation. Agencies typically cite reasons such as urgency, unique capabilities, or lack of available sources.

What is the potential financial risk associated with this sole-source award?

The primary financial risk is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, L3 Technologies, Inc. may not have been incentivized to offer the lowest possible price. The long contract duration exacerbates this risk over time.

How effective is this contract in meeting the Department of Defense's needs?

Assuming L3 Technologies, Inc. possesses the necessary capabilities, the contract is likely effective in fulfilling the specific requirement for TCDL (MST STE) equipment. However, the effectiveness in terms of value for money is questionable due to the sole-source procurement method.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $29,641,220

Exercised Options: $29,641,220

Current Obligation: $29,314,035

Actual Outlays: $23,731

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $6,515,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002419G2304

IDV Type: BOA

Timeline