DoD Awards L3 Technologies $33.16M for MIDS-LVT Production, Ending March 2026
Contract Overview
Contract Amount: $30,340,582 ($30.3M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-03-31
Contract Duration: 915 days
Daily Burn Rate: $33.2K/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: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to L3 TECHNOLOGIES, INC. for work described as: MIDS-LVT(1) [BU2] PRODUCTION UNITS Key points: 1. Significant award to L3 Technologies for a critical defense communication system. 2. Full and open competition suggests potential for competitive pricing. 3. Long-term contract (915 days) indicates sustained demand for MIDS-LVT. 4. Focus on production units highlights manufacturing and supply chain aspects.
Value Assessment
Rating: good
The award value of $33.16 million for 3,034,058 units appears reasonable given the firm fixed price contract type. Benchmarking against similar complex electronic equipment contracts would provide further insight into cost-effectiveness.
Cost Per Unit: $10.93
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring efficient use of defense funds for essential equipment.
Public Impact
Ensures continued availability of vital communication equipment for naval operations. Supports the defense industrial base and advanced manufacturing capabilities. Potential for technological advancements in communication systems through ongoing production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Risk of cost overruns if production complexities are underestimated.
- Dependence on a single awardee for a critical component.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost certainty.
- Long contract duration indicates stable demand and production planning.
Sector Analysis
This contract falls within the defense electronics manufacturing sector, specifically for communication equipment. Spending in this area is driven by national security needs and technological upgrades.
Small Business Impact
While the prime contractor is L3 Technologies, Inc., the contract details do not specify subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price nature and full and open competition suggest a structured procurement process.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for supply chain disruptions.
- Risk of technology obsolescence over the contract duration.
- Dependence on a single supplier for critical components.
- Need for ongoing quality assurance to ensure system reliability.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 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 $30.3 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-03-31.
What is the historical performance of L3 Technologies on similar defense contracts, particularly regarding delivery timelines and quality?
Historical performance data for L3 Technologies on comparable defense contracts is crucial for assessing reliability. Past adherence to delivery schedules, quality control metrics, and responsiveness to issues would provide strong indicators of their capability to fulfill this MIDS-LVT production order effectively and on time.
How does the per-unit cost of $10.93 compare to industry benchmarks for similar advanced communication hardware?
Benchmarking the $10.93 per-unit cost against similar advanced communication hardware is essential for value assessment. If this figure is significantly higher than comparable market prices or previous contract awards for similar items, it could indicate potential overpricing or unique contract requirements driving costs.
What are the specific risks associated with the long production timeline (915 days) for this contract?
The 915-day production timeline introduces risks such as potential obsolescence of technology, shifts in operational requirements, and increased vulnerability to supply chain disruptions or material cost fluctuations over the extended period. Proactive risk mitigation strategies by the DoD and L3 Technologies are necessary.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
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: $30,340,582
Exercised Options: $30,340,582
Current Obligation: $30,340,582
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $6,472,403
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
Start Date: 2023-09-28
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-06-11
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