Naval Sea Systems Command awards $31.5M contract for antennas, waveguides, and related equipment to L3 Technologies

Contract Overview

Contract Amount: $31,502,621 ($31.5M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 1997-01-10

End Date: 2007-09-30

Contract Duration: 3,915 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 199704!1700!1913!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002495C6208 !A!*!P00043 !19970110!20001231!041491895!041491895!001117290!N!34228!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPSHIRE !MASS !0001!+000001778000!N!N!000000000000!5985!ANTENNAS, WAVEGUIDES & RELATED EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!A !N!V!2!002!B!* !A!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to L3 TECHNOLOGIES, INC. for work described as: 199704!1700!1913!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002495C6208 !A!*!P00043 !19970110!20001231!041491895!041491895!001117290!N!34228!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPSH… Key points: 1. Contract awarded for specialized electronic equipment, indicating a need for advanced communication and detection systems. 2. The contract's duration of over 10 years suggests a long-term requirement for these components. 3. Awarded under full and open competition, implying a robust bidding process. 4. The cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 5. The specific product service code (PSC) points to a niche but critical area within defense electronics. 6. The contract value of $31.5 million is significant for this specialized equipment category.

Value Assessment

Rating: good

The contract value of $31.5 million for antennas, waveguides, and related equipment appears reasonable given the extended performance period of over 10 years. While specific per-unit cost benchmarks are not readily available for such specialized defense components, the cost-plus-incentive-fee (CPIF) pricing structure suggests an effort to manage costs effectively by incentivizing the contractor to meet performance targets. Comparing this to similar long-term, complex defense electronics procurements would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the 'full and open' designation suggests a competitive environment that should theoretically lead to better pricing and innovation. The agency likely sought the best value through a structured evaluation process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for essential defense equipment, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the U.S. Navy and potentially other Department of Defense branches requiring advanced antenna and waveguide systems for naval operations. The contract delivers critical components for communication, surveillance, or electronic warfare systems. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized engineering, manufacturing, and technical support roles at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed closely.
Reliance on a single contractor for a critical component over an extended period.
Complexity of CPIF contracts requires diligent oversight to ensure incentives are effective.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Incentive fee structure encourages contractor performance and efficiency.
Long-term award indicates a stable, ongoing need for the technology.

Sector Analysis

This contract falls within the Defense Electronics sector, specifically focusing on antennas, waveguides, and related equipment. This is a critical sub-sector for military communications, radar, and electronic warfare systems. The market for such specialized components is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is driven by the need for advanced capabilities to maintain a technological edge.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature of antennas and waveguides, it's possible that larger, more established defense contractors are better positioned to fulfill such requirements. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Sea Systems Command (NAVSEA) and potentially the Defense Contract Management Agency (DCMA). The CPIF structure necessitates close monitoring of performance metrics and cost expenditures to ensure the incentive clauses are appropriately applied. Transparency is generally maintained through contract reporting requirements, though specific details might be classified.

Related Government Programs

Naval Communication Systems
Electronic Warfare Systems
Radar Systems
Defense Communication Equipment
Antenna Manufacturing

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for technological obsolescence over the contract's lifespan.
CPIF contracts require robust oversight to ensure effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to L3 TECHNOLOGIES, INC.. 199704!1700!1913!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002495C6208 !A!*!P00043 !19970110!20001231!041491895!041491895!001117290!N!34228!KOLLMORGEN CORPORATION !347 KING ST !NORTHAMPTON !MA!01060!46330!015!25!NORTHAMPTON !HAMPSHIRE !MASS !0001!+000001778000!N!N!000000000000!5985!ANTENNAS, WAVEGUIDES & RELATED EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!A !N!V!2!0

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 $31.5 million.

What is the period of performance?

Start: 1997-01-10. End: 2007-09-30.

What is the historical spending trend for antennas, waveguides, and related equipment by the Naval Sea Systems Command?

Analyzing historical spending for this specific product service code (PSC 5985) by NAVSEA would reveal trends in demand and investment. While this single contract represents a $31.5 million award over its lifespan, understanding the total annual or multi-year spending by NAVSEA on similar items would provide context. This includes identifying if spending has been consistent, increasing, or decreasing, and whether this contract represents a significant portion of the overall budget for such equipment. Without broader historical data, it's difficult to ascertain if this award is typical, an outlier, or part of a larger strategic procurement initiative.

How does the performance of L3 Technologies on similar defense contracts compare to industry benchmarks?

Assessing L3 Technologies' track record on comparable defense contracts is crucial for evaluating performance risk. This would involve examining past performance evaluations, on-time delivery rates, budget adherence, and any history of contract disputes or terminations. Benchmarking these metrics against industry averages for defense electronics suppliers would indicate whether L3 Technologies is a reliable performer or poses a higher risk. Positive past performance on complex, high-value contracts would support the 'good' or 'excellent' rating for value, while a history of issues might warrant a more cautious assessment.

What are the key performance indicators (KPIs) tied to the incentive fee structure of this contract?

The key performance indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract are critical for understanding how contractor performance is measured and rewarded. While not explicitly detailed in the provided data, typical KPIs for such contracts often include technical performance milestones, delivery schedules, quality control metrics, and potentially cost reduction targets. The incentive fee structure means that exceeding these KPIs would result in higher profit for L3 Technologies, while failing to meet them could reduce their profit margin. Effective KPIs are essential for ensuring the government receives optimal value and performance.

What is the estimated total cost of ownership for these systems over their lifecycle, considering maintenance and upgrades?

The initial award value of $31.5 million represents the procurement cost, but the total cost of ownership (TCO) over the system's lifecycle is a more comprehensive measure of value. This would include costs associated with installation, operation, maintenance, repair, spare parts, training, and potential upgrades or modernization efforts. For long-duration contracts like this (over 10 years), these sustainment costs can often exceed the initial acquisition cost. A thorough TCO analysis would provide a clearer picture of the long-term financial commitment and the overall economic efficiency of this procurement.

Are there any known technological obsolescence risks associated with the specified antennas and waveguides?

Technological obsolescence is a significant risk in defense procurement, especially for components with long service lives. For antennas and waveguides, the risk depends on the specific technology employed. If the contract involves cutting-edge technology, the risk of rapid obsolescence might be higher, necessitating frequent upgrades. Conversely, if it involves mature, reliable technology, obsolescence might be less of a concern but could limit future capabilities. Assessing the technology roadmap and the potential for future upgrades or replacements is vital to mitigate this risk and ensure the long-term utility of the acquired systems.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Address: 50 PRINCE ST, NORTHAMPTON, MA, 01060

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline