DoD awards $360M contract for SPARES MIDS JTRS to L3 Technologies, Inc

Contract Overview

Contract Amount: $35,979,305 ($36.0M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-25

End Date: 2026-07-31

Contract Duration: 2,135 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPARES MIDS JTRS

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.0 million to L3 TECHNOLOGIES, INC. for work described as: SPARES MIDS JTRS Key points: 1. Contract value of $359.8M over its period of performance suggests significant investment in critical communication systems. 2. The award to a single large contractor, L3 Technologies, Inc., indicates a focus on established providers for complex defense needs. 3. The 'Other Communications Equipment Manufacturing' NAICS code points to a specialized segment within the broader defense industrial base. 4. A firm-fixed-price contract type generally shifts cost risk to the contractor, potentially leading to more predictable government spending. 5. The contract's duration of over 5 years (2135 days) implies a long-term requirement for these spare parts and systems. 6. The absence of small business set-aside or subcontracting flags suggests this contract is not specifically structured to benefit smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the quantity and type of spares. However, a $360 million award over five years for specialized defense communication equipment suggests a substantial investment. The firm-fixed-price nature aims for cost control, but the ultimate value-for-money depends on the actual need and utilization of these spares. Comparisons to similar sole-source or limited-competition awards for specialized defense components would be necessary for a more precise assessment.

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 solicited and considered. This approach is generally preferred for maximizing competition and achieving favorable pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was intended.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions from various companies.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Department of the Navy) and its operational units relying on secure and reliable communication systems. The contract delivers essential spare parts and potentially repair services for the SPARES MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System) program. This ensures the continued operational readiness and effectiveness of military platforms that utilize this communication technology. The geographic impact is likely global, supporting deployed forces wherever MIDS JTRS systems are in operation. Workforce implications may include continued employment for specialized manufacturing and logistics personnel at L3 Technologies and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if MIDS JTRS technology is highly proprietary and L3 Technologies is the sole authorized provider of spares.
Reliance on a single large contractor for critical spares could pose supply chain risks if the contractor faces production issues or financial instability.
Lack of specific small business participation may limit opportunities for smaller innovative firms within the defense supply chain.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should have yielded fair market pricing.
Firm-fixed-price contract type shifts cost overrun risks to the contractor, providing budget predictability for the government.
Long contract duration indicates a stable, long-term need for these critical communication spares, supporting sustained military operations.

Sector Analysis

The defense communications equipment manufacturing sector is highly specialized, characterized by stringent performance requirements, advanced technology, and significant R&D investment. Companies like L3 Technologies operate within a market driven by government procurement, often involving complex systems integration and long product lifecycles. This contract for SPARES MIDS JTRS fits within this niche, focusing on ensuring the sustainment and operational readiness of existing advanced communication platforms. Comparable spending benchmarks would likely involve other large sustainment contracts for critical military hardware.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). The award to a large prime contractor, L3 Technologies, Inc., suggests that small businesses are unlikely to be direct awardees. However, L3 Technologies may engage small businesses as subcontractors, though this is not explicitly indicated. The absence of specific subcontracting plans or set-asides means there's no guaranteed pathway for small business participation in this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA). Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is facilitated by contract award databases, but detailed performance metrics and specific oversight activities are typically internal to the agency.

Related Government Programs

SPARES MIDS JTRS Program
Department of the Navy Procurement
Defense Communications Systems
Tactical Radio Systems
Military Spare Parts Procurement

Risk Flags

Potential for sole-source dependency if follow-on contracts are not competed.
Supply chain vulnerability for critical defense components.
Lack of explicit small business participation targets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to L3 TECHNOLOGIES, INC.. SPARES MIDS JTRS

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 $36.0 million.

What is the period of performance?

Start: 2020-09-25. End: 2026-07-31.

What is the historical spending pattern for SPARES MIDS JTRS or similar communication equipment by the Department of Defense?

Analyzing historical spending for the SPARES MIDS JTRS program requires access to detailed procurement data beyond this single award. However, the Department of Defense (DoD) consistently allocates significant portions of its budget to sustainment and modernization of communication systems. Programs like MIDS are critical for joint operations, implying a continuous need for spares and upgrades. Past spending on similar tactical communication systems, including radios, data links, and associated spares, often runs into hundreds of millions or even billions of dollars annually across the services. Factors influencing historical spending include technological obsolescence, evolving threat environments, and the number of platforms equipped with the systems. Without specific historical contract data for this exact program, it's difficult to provide precise figures, but the $360M award indicates a substantial, ongoing investment in this capability.

How does the pricing of this contract compare to similar MIDS JTRS spare parts contracts awarded previously or to other vendors?

A direct price comparison for this contract is challenging without access to detailed pricing structures and specific item quantities within the $359.8 million award. As this appears to be a sole-source or limited-competition award for specific spares, benchmarking against other vendors offering identical items under competitive conditions is not feasible. However, the firm-fixed-price (FFP) contract type suggests that the government has negotiated a set price for the goods or services. Value-for-money assessments would typically involve comparing unit prices for specific spare parts against historical data, catalog prices (if available), or prices paid by other government agencies for similar components. The 'full and open competition' designation, if accurate for the overall program and not just this specific delivery order, implies that competitive pricing was sought, but the specific details of that competition are not provided here.

What are the key performance indicators (KPIs) and performance standards associated with this contract?

Key Performance Indicators (KPIs) and performance standards for this contract are not explicitly detailed in the provided data. However, for a contract involving spare parts for critical communication systems like MIDS JTRS, typical KPIs would likely focus on delivery timeliness (e.g., on-time delivery rates), quality of parts (e.g., defect rates, compliance with specifications), and responsiveness to urgent requirements. Performance standards would mandate adherence to technical specifications, reliability of the spares, and potentially warranty provisions. The Department of the Navy, as the contracting agency, would establish these metrics within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Failure to meet these standards could result in penalties, contract modifications, or termination, underscoring the importance of robust performance monitoring.

What is the track record of L3 Technologies, Inc. in delivering similar defense communication equipment or spare parts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a significant and established track record in providing a wide range of defense electronics, communication systems, and related support services to the U.S. military and international allies. The company has historically been a major supplier of advanced communication, navigation, and electronic warfare systems. Their experience includes manufacturing complex hardware, providing sustainment and logistics support, and integrating systems onto various military platforms. For MIDS JTRS specifically, L3 Technologies has been a known participant in the supply chain, often providing components or integrated systems. Their long-standing presence in the defense sector suggests a capacity to handle large, complex contracts like this one, although specific performance details on past MIDS JTRS spare parts contracts would require deeper investigation into contract performance reports.

What are the potential risks associated with relying on a single contractor for these critical spare parts?

Relying on a single contractor, even if awarded through full and open competition initially, for critical spare parts like those for MIDS JTRS presents several potential risks. Firstly, there's a risk of supply chain disruption; if the contractor faces production issues, financial difficulties, or geopolitical challenges, the availability of essential spares could be jeopardized, impacting military readiness. Secondly, without ongoing competition for spares, there's a potential for price escalation over time, as the contractor may face less pressure to maintain competitive pricing, especially if the technology is proprietary or difficult to replicate. Thirdly, there's a risk of vendor lock-in, where the government becomes heavily dependent on one supplier, potentially limiting flexibility in adopting newer technologies or seeking alternative solutions. Finally, quality control could become a concern if oversight is not rigorous, as the contractor might be tempted to cut corners if competition is minimal.

How does this contract contribute to the overall readiness and operational capability of the U.S. Navy's communication infrastructure?

This contract is crucial for maintaining and enhancing the operational readiness of the U.S. Navy's communication infrastructure by ensuring the availability of spare parts for the Multifunctional Information Distribution System Joint Tactical Radio System (MIDS JTRS). MIDS JTRS is a vital component for secure, jam-resistant, high-volume voice and data communication across various military platforms, including aircraft, ships, and ground units. Having readily available spares directly supports the sustainment of these systems, minimizing downtime and ensuring that communication capabilities remain functional during critical missions. This directly translates to improved situational awareness, enhanced command and control, and overall mission effectiveness for naval forces operating globally. The long-term nature of the contract suggests a commitment to sustained operational capability.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003919R1000

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $35,979,305

Exercised Options: $35,979,305

Current Obligation: $35,979,305

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,965,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003920D0058

IDV Type: IDC

Timeline