DoD awards $27.1M for MIDS-LVT production, with L3 Technologies Inc. as prime contractor

Contract Overview

Contract Amount: $27,164,802 ($27.2M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-19

End Date: 2025-01-31

Contract Duration: 1,961 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MIDS-LVT(1) [BU2] PRODUCTION UNITS

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to L3 TECHNOLOGIES, INC. for work described as: MIDS-LVT(1) [BU2] PRODUCTION UNITS Key points: 1. Contract value of $27.1M over 5 years suggests a significant investment in communication equipment. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. The delivery order structure implies a phased approach to production and delivery. 5. The prime contractor, L3 Technologies, Inc., has a substantial presence in defense contracting. 6. The contract supports the Department of the Navy, highlighting its role in naval communications.

Value Assessment

Rating: good

The contract value of $27.1 million over approximately 5 years for MIDS-LVT production units appears reasonable given the nature of defense electronics manufacturing. Benchmarking against similar complex electronic systems, the per-unit cost would need detailed analysis, but the overall award size is within expected ranges for specialized military hardware. The firm fixed-price structure provides cost certainty for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The presence of two bids indicates a degree of competition, which is generally favorable for price discovery and achieving a fair market price. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the U.S. Navy warfighters who will receive advanced communication systems. The contract delivers essential MIDS-LVT (Multifunctional Information Distribution System - Low Volume Terminal) production units. The geographic impact is primarily within the United States, with potential deployment globally with naval assets. The contract supports jobs within the defense manufacturing sector, particularly at L3 Technologies, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated.
Dependence on a single prime contractor for critical component delivery.
Risk of obsolescence if technology evolves rapidly during the contract period.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long-term contract duration allows for stable production planning.

Sector Analysis

The defense electronics manufacturing sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. This contract for MIDS-LVT production units fits within the broader landscape of military communications systems, a critical component of national defense. The market is dominated by a few large prime contractors capable of meeting the rigorous specifications and production volumes required by the Department of Defense.

Small Business Impact

While this contract was awarded to a large prime contractor, L3 Technologies, Inc., there are often subcontracting opportunities for small businesses within the defense industrial base. The extent to which this prime contractor utilizes small business subcontractors for components or services is not detailed in the provided data but is a key area for assessing broader economic impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm fixed-price structure and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may be sensitive.

Related Government Programs

Tactical Data Links
Military Communications Systems
Naval Aviation Electronics
Defense Production Act Investments

Risk Flags

Potential for supply chain disruptions impacting production.
Risk of technological obsolescence over the contract duration.
Dependence on a single source for critical components may exist.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to L3 TECHNOLOGIES, INC.. MIDS-LVT(1) [BU2] PRODUCTION UNITS

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 $27.2 million.

What is the period of performance?

Start: 2019-09-19. End: 2025-01-31.

What is the historical spending trend for MIDS-LVT production units by the Department of Defense?

Analyzing historical spending on MIDS-LVT production units requires access to detailed contract databases beyond the scope of this single award. However, the MIDS program has been a long-standing initiative within the DoD, indicating consistent, albeit potentially fluctuating, investment over many years. Factors influencing historical spending include program maturity, technological upgrades, fleet modernization efforts, and geopolitical requirements. Without specific historical data, it's difficult to establish a precise trend, but the continued production suggests ongoing operational needs and program support.

How does the per-unit cost of these MIDS-LVT units compare to similar communication systems in the defense market?

A direct per-unit cost comparison for MIDS-LVT units is challenging without detailed cost breakdowns and access to proprietary pricing information from competitors. The MIDS-LVT is a specialized, high-reliability communication terminal designed for demanding military environments, which inherently leads to higher costs than commercial off-the-shelf (COTS) communication devices. Benchmarking would require identifying comparable military-grade terminals with similar functionalities (e.g., Link 16 capabilities, encryption, ruggedization) and analyzing their contract awards. The $27.1 million award for an unspecified number of units suggests a significant per-unit cost, likely in the tens or hundreds of thousands of dollars, reflecting the system's complexity and military specifications.

What are the key performance indicators (KPIs) used to evaluate the success of this MIDS-LVT production contract?

Key performance indicators for a defense production contract like this typically revolve around schedule adherence, quality control, and cost management. Specific KPIs would likely include on-time delivery rates for production units, defect rates (e.g., Mean Time Between Failures - MTBF), adherence to technical specifications and performance requirements, and final cost against the awarded amount. The Department of Defense often employs Earned Value Management (EVM) systems to track performance against baseline plans. Successful contract completion would mean meeting or exceeding these established metrics, ensuring the Navy receives reliable and functional communication equipment within budget and on schedule.

What is the track record of L3 Technologies, Inc. in fulfilling similar defense electronics production contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a substantial and generally positive track record in fulfilling complex defense electronics production contracts. The company has historically been a significant supplier of communication, electronic warfare, and sensor systems to the U.S. military. Their experience spans numerous programs requiring high reliability, advanced technology integration, and large-scale production. While specific performance details for every contract are not publicly available, their continued success in winning and executing large defense contracts indicates a strong capability in program management, manufacturing, and quality assurance necessary for systems like the MIDS-LVT.

Are there any identified risks associated with the production timeline or technological obsolescence of the MIDS-LVT system?

The primary risks associated with the production timeline and technological obsolescence of the MIDS-LVT system are inherent in long-lead defense programs. Production timelines can be impacted by supply chain disruptions, manufacturing complexities, or unforeseen technical challenges, potentially leading to delays. Regarding technological obsolescence, while the MIDS-LVT is a critical system, the rapid pace of technological advancement in communications and networking poses a constant threat. The DoD mitigates this through planned upgrades, software refreshes, and potentially future system replacements. The contract's duration (ending in 2025) suggests it covers a period where the current MIDS-LVT technology is still considered relevant, but future sustainment and modernization plans would be crucial.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003915R0222

Offers Received: 2

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: $27,164,802

Exercised Options: $27,164,802

Current Obligation: $27,164,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003915D0043

IDV Type: IDC

Timeline