DoD awards $22.3M for MIDS JTRS SE&I, with L3 Technologies Inc. securing the contract

Contract Overview

Contract Amount: $22,316,864 ($22.3M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-27

End Date: 2025-11-30

Contract Duration: 1,283 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS SE&I Key points: 1. Contract value of $22.3M over its period of performance. 2. L3 Technologies, Inc. is the primary contractor. 3. The contract is for the MIDS JTRS SE&I program. 4. Awarded by the Department of the Navy. 5. The contract duration is 1283 days. 6. This is a Delivery Order under a larger contract. 7. The North American Industry Classification System (NAICS) code is 334290. 8. The Product Service Code (PSC) is not specified.

Value Assessment

Rating: fair

The contract value of $22.3 million for MIDS JTRS SE&I services appears moderate given the program's scope. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. Benchmarking against similar systems integration and engineering support contracts would be necessary for a more definitive evaluation of pricing and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award suggests a degree of price discovery and potential for favorable terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing.

Public Impact

The Department of Defense, specifically the Department of the Navy, benefits from enhanced capabilities through the MIDS JTRS SE&I program. Services delivered likely include systems engineering, integration, and support for the MIDS JTRS program. The contract is associated with California, suggesting a potential geographic impact on workforce and business activity in that state. The contract supports specialized technical roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor effectiveness.
The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to cost overruns if not managed carefully.
Limited information on the competitive landscape beyond 'full and open' makes it hard to gauge true price pressure.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract is for a critical defense program (MIDS JTRS SE&I), indicating strategic importance.
The contractor, L3 Technologies, Inc., is an established entity in the defense sector.

Sector Analysis

The MIDS JTRS SE&I contract falls within the defense electronics and systems integration sector. This sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Spending in this area is driven by the need for advanced communication and situational awareness capabilities for military operations. Comparable spending benchmarks would involve other large-scale defense systems integration and engineering support contracts, often in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the prime contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but are not detailed in this award notice. The impact on the small business ecosystem is likely indirect, depending on whether L3 Technologies, Inc. engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance requirements and payment schedules. Transparency is facilitated through contract award notices, though detailed cost and performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

MIDS (Multifunctional Information Distribution System)
JTRS (Joint Tactical Radio System)
Defense Communications Systems
Aerospace and Defense Systems Integration
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Limited public information on specific performance metrics.
Potential for integration challenges with evolving technologies in the JTRS program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to L3 TECHNOLOGIES, INC.. MIDS JTRS SE&I

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 $22.3 million.

What is the period of performance?

Start: 2022-05-27. End: 2025-11-30.

What is the historical spending trend for MIDS JTRS SE&I contracts awarded to L3 Technologies, Inc. or its predecessors?

Analyzing historical spending for MIDS JTRS SE&I contracts awarded to L3 Technologies, Inc. requires access to historical contract databases and award data. Without specific historical data, it's difficult to provide a precise trend. However, typically, programs like MIDS JTRS SE&I involve multi-year funding cycles and can see fluctuating annual obligations based on program milestones, system upgrades, and operational needs. If L3 Technologies has been a consistent provider, spending might show a relatively stable pattern with potential increases during major development or integration phases and decreases during sustainment or lower-activity periods. A comprehensive review would involve examining all prior awards related to this program and contractor over several fiscal years to identify patterns, significant increases or decreases, and the reasons behind them, such as contract modifications or new award types.

How does the awarded amount of $22.3 million compare to the total lifecycle cost estimate for the MIDS JTRS SE&I program?

The awarded amount of $22.3 million represents a specific delivery order or task order under a larger contract vehicle for the MIDS JTRS SE&I program. It is not indicative of the total lifecycle cost estimate for the entire program. Lifecycle cost estimates encompass all expenses associated with a system from its inception through its disposal, including research, development, acquisition, operations, sustainment, and modernization. The $22.3 million is a portion of the funding allocated for a defined period (May 2022 to November 2025) to cover specific systems engineering and integration efforts. To compare this to the lifecycle cost, one would need to access the program's official lifecycle cost estimate documentation, which is typically developed and maintained by the program executive office and can run into billions of dollars over decades.

What are the key performance indicators (KPIs) used to evaluate L3 Technologies, Inc.'s performance on this contract?

Key Performance Indicators (KPIs) for a Systems Engineering and Integration (SE&I) contract like MIDS JTRS SE&I are typically defined within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). While not explicitly detailed in the award abstract, common KPIs for such contracts often include metrics related to schedule adherence (e.g., on-time delivery of milestones), technical performance (e.g., meeting system specifications, successful integration testing), cost control (e.g., managing costs within the fixed-fee or target cost parameters), quality of deliverables (e.g., accuracy and completeness of documentation, reports), and responsiveness to government requests or changes. The government would monitor these KPIs through regular progress reports, technical reviews, and performance assessments to ensure the contractor is meeting contractual obligations.

What is the risk profile associated with the MIDS JTRS SE&I program and L3 Technologies, Inc. as the contractor?

The risk profile for the MIDS JTRS SE&I program involves several dimensions. Programmatic risks can include technical complexity, integration challenges with evolving technologies (like JTRS), schedule delays, and potential cost overruns, especially given the CPFF contract type. Operational risks involve ensuring the system meets the demanding requirements of military communication in diverse environments. For L3 Technologies, Inc., risks might include their ability to manage complex technical integration, maintain security clearances for personnel, adapt to changing military requirements, and compete effectively for future work. Their track record with similar defense programs and their financial stability would be key factors in assessing contractor-specific risk. The government's risk mitigation strategies would involve robust oversight, clear performance metrics, and contingency planning.

What is the significance of the NAICS code 334290 (Other Communications Equipment Manufacturing) in the context of this contract?

The NAICS code 334290, 'Other Communications Equipment Manufacturing,' indicates that the primary business activity related to this contract involves the manufacturing of communication equipment not elsewhere classified. While this contract is for SE&I (Systems Engineering and Integration), the NAICS code suggests that the underlying program or the contractor's role may involve aspects of manufacturing or supporting the manufacturing of specific communication hardware components or systems that fall under this category. This could include specialized radios, data links, or related hardware integral to the MIDS JTRS system. The classification helps categorize the contract within the broader industrial landscape and informs economic analysis related to the communications equipment manufacturing sector.

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: COST PLUS FIXED FEE (U)

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: $23,756,849

Exercised Options: $23,756,849

Current Obligation: $22,316,864

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $126,748

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