DoD's $16.4M L3 Technologies Contract for Navigation Systems Faces Limited Competition
Contract Overview
Contract Amount: $16,391,398 ($16.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-04-01
End Date: 2026-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRODUCTION AND ENGINEERING SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to L3 TECHNOLOGIES, INC. for work described as: PRODUCTION AND ENGINEERING SERVICES Key points: 1. Contract awarded to L3 Technologies, Inc. for $16.4M. 2. Focuses on Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems. 3. Limited competition raises concerns about price discovery and potential overspending. 4. Sector: Defense, specifically navigation and guidance systems manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not closely managed. Without available benchmark data, assessing the pricing against similar contracts is difficult, raising concerns about value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is marked as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition award. This significantly restricts price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: Limited competition can lead to inflated prices, meaning taxpayers may be paying more than necessary for these critical navigation systems.
Public Impact
Taxpayers may be overpaying due to lack of competitive bidding. Potential for cost overruns in a Cost Plus Fixed Fee contract. Dependence on a single contractor for essential navigation technology. Impact on the defense supply chain and innovation in navigation systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of available benchmark data
Positive Signals
- Essential technology for national defense
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing instruments for navigation and guidance. Spending in this area is critical for military operations, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The limited competition and Cost Plus Fixed Fee structure warrant close oversight to ensure costs are controlled and the contractor is performing effectively. Transparency in reporting is crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of transparency regarding the reasons for limited competition.
- Absence of small business participation noted.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to L3 TECHNOLOGIES, INC.. PRODUCTION AND ENGINEERING SERVICES
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 $16.4 million.
What is the period of performance?
Start: 2022-04-01. End: 2026-03-31.
What specific factors led to this contract being classified as 'NOT AVAILABLE FOR COMPETITION', and could a more competitive approach have been feasible?
The data does not specify the reasons for limited competition. Typically, this designation arises from factors like unique technical requirements, urgent needs, or existing contractor capabilities. However, a thorough review might reveal if alternative procurement strategies or phased approaches could have fostered greater competition, potentially leading to better pricing and innovation.
How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns and ensure fair pricing for the government?
Effective management of a Cost Plus Fixed Fee contract requires robust government oversight, detailed cost tracking, and clear performance metrics. The Department of the Navy must implement stringent auditing processes and regular reviews to ensure that costs are reasonable and allocable, and that the fixed fee remains appropriate for the effort expended.
What is the potential impact on technological advancement and future system upgrades given the limited competition in this critical navigation systems contract?
Limited competition can stifle innovation as the contractor may face less pressure to develop cutting-edge solutions. This could lead to slower adoption of new technologies and potentially higher costs for future upgrades, as the government may lack alternative vendors with advanced capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003922R9101
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2235 MONROE ST FL 3, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,980,690
Exercised Options: $30,103,137
Current Obligation: $16,391,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-04-01
Current End Date: 2026-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-01-06
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