DoD Awards $105.7M Contract for Guided Missiles to Interstate Electronics Corp
Contract Overview
Contract Amount: $11,990,995 ($12.0M)
Contractor: L3harris Interstate Electronics Corporation
Awarding Agency: Department of Defense
Start Date: 1998-03-25
End Date: 2001-06-30
Contract Duration: 1,193 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199806!1700!A161!XSP01!STRATEGIC SYSTEMS PROGRAMS !N0003098C0011 !A!*!* !19980325!20010930!008289043!008289043!105692602!N!07421!INTERSTATE ELECTRONICS CORPORA!602 E VERMONT AVE !ANAHEIM !CA!92805!02000!059!06!ANAHEIM !ORANGE !CALIFORNIA!0001!+000011990995!N!N!000000000000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !2CNJ!UGM-96 TRIDENT !3761!3!*!*!*!B!A!*!D !N!U!1!001!N!1A!Z!Y!Z!* !* !N!C!*!Z!Z!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: ANAHEIM, ORANGE County, CALIFORNIA, 92805
Plain-Language Summary
Department of Defense obligated $12.0 million to L3HARRIS INTERSTATE ELECTRONICS CORPORATION for work described as: 199806!1700!A161!XSP01!STRATEGIC SYSTEMS PROGRAMS !N0003098C0011 !A!*!* !19980325!20010930!008289043!008289043!105692602!N!07421!INTERSTATE ELECTRONICS CORPORA!602 E VERMONT AVE !ANAHEIM !CA!92805!02000!059!06!ANAHEIM !ORANGE… Key points: 1. Contract awarded for Guided Missiles (PSC 1410). 2. Interstate Electronics Corporation, a subsidiary of L3Harris, received the award. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls within the Defense sector, specifically missile and space systems.
Value Assessment
Rating: questionable
The contract value is $105.7 million. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar missile system contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This method may not yield the best possible price for the government.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers if the pricing is not rigorously scrutinized.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competition. The contract supports the development and production of critical missile systems for national defense. This award highlights the significant defense spending in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Award to established defense contractor
- Supports critical defense capabilities
Sector Analysis
This contract falls under the Defense sector, specifically within missile and space systems. Defense spending on such systems is substantial, and competitive bidding is crucial for cost efficiency.
Small Business Impact
The award went to a large corporation (L3Harris Interstate Electronics Corporation), with no indication of small business participation in this specific contract.
Oversight & Accountability
The lack of competition warrants closer oversight to ensure the government is receiving fair value for its investment in these strategic systems.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Non-competitive award
- Potential for cost overruns
- Limited price justification available
- Lack of market research evident
Tags
department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to L3HARRIS INTERSTATE ELECTRONICS CORPORATION. 199806!1700!A161!XSP01!STRATEGIC SYSTEMS PROGRAMS !N0003098C0011 !A!*!* !19980325!20010930!008289043!008289043!105692602!N!07421!INTERSTATE ELECTRONICS CORPORA!602 E VERMONT AVE !ANAHEIM !CA!92805!02000!059!06!ANAHEIM !ORANGE !CALIFORNIA!0001!+000011990995!N!N!000000000000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !2CNJ!UGM-96 TRIDENT !3761!3!*!*!*!B!A!*!D !N!U!1!0
Who is the contractor on this award?
The obligated recipient is L3HARRIS INTERSTATE ELECTRONICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 1998-03-25. End: 2001-06-30.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The data indicates the contract was 'NOT COMPETED' and awarded as a 'DEFINITIVE CONTRACT'. Without further documentation, the specific justification for limited competition and the methodology used to determine a fair and reasonable price remain unclear. This lack of transparency is a common concern in non-competed contracts.
What are the risks associated with awarding a large contract without competition in the defense sector?
The primary risk is the potential for inflated costs, as the government lacks the leverage of competing bids to drive down prices. This can lead to inefficient use of taxpayer funds. Additionally, it may stifle innovation from other potential suppliers who were not given an opportunity to bid.
How does this contract contribute to the overall effectiveness of the U.S. missile defense systems?
This contract is for 'GUIDED MISSILES' and specifically mentions 'UGM-96 TRIDENT', which are critical components of strategic deterrence. Ensuring the reliable production and availability of these systems is vital for national security, even if the procurement process raises cost concerns.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L3 Technologies, Inc. (UEI: 008898884)
Address: 602 E VERMONT AVE, ANAHEIM, CA, 92805
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1998-03-25
Current End Date: 2001-06-30
Potential End Date: 2001-06-30 00:00:00
Last Modified: 2018-12-20
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