DoD's $21.4M MIDS JTRS SE&I contract awarded to L3 Technologies, Inc. for communications equipment

Contract Overview

Contract Amount: $21,387,453 ($21.4M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2027-04-30

Contract Duration: 861 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MIDS JTRS SE&I BALANCE

Place of Performance

Location: CARLSBAD, SAN DIEGO County, CALIFORNIA, 92009

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to L3 TECHNOLOGIES, INC. for work described as: MIDS JTRS SE&I BALANCE Key points: 1. The contract value of $21.4 million appears reasonable for a multi-year defense communications equipment program. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 861 days (approx. 2.3 years) is typical for this type of defense acquisition. 4. The award is for 'Other Communications Equipment Manufacturing,' indicating a specific niche within the defense industrial base. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar vehicle. 6. The prime contractor, L3 Technologies, Inc., is a significant player in the defense sector.

Value Assessment

Rating: good

Benchmarking the $21.4 million value against similar defense communications equipment contracts is challenging without more specific details on the scope of work and technical requirements. However, for a program involving specialized systems like MIDS JTRS (Multifunctional Information Distribution System Joint Tactical Radio System), this figure seems within a plausible range. The cost-plus-fixed-fee (CPFF) contract type suggests that costs are monitored, but the fixed fee provides a ceiling for contractor profit. Further analysis would require comparing the labor rates and material costs to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust bidding environment with multiple offerors vying for the contract. The number of bidders is not specified, but the 'full and open' designation suggests that the government sought the best value through a competitive process, which generally benefits price discovery.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive advanced communications equipment. The services delivered include the sustainment, engineering, and integration of the MIDS JTRS system. The geographic impact is primarily within Department of Defense operations, potentially worldwide. Workforce implications include specialized engineering, manufacturing, and technical support roles within L3 Technologies and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's track record on this particular award.
The CPFF contract type can sometimes lead to cost overruns if not managed diligently by the government.
Dependence on a single prime contractor for specialized systems can pose supply chain risks.

Positive Signals

Awarded under full and open competition, indicating a competitive environment.
The prime contractor, L3 Technologies, Inc., has a significant presence and experience in the defense sector.
The contract is for a critical defense communications system (MIDS JTRS), suggesting strategic importance.

Sector Analysis

The defense communications sector is characterized by high technological complexity, stringent security requirements, and significant government investment. Contracts like this support the development and sustainment of advanced C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. The market is dominated by large defense contractors, with specialized niches for smaller, innovative firms. Spending in this area is driven by evolving threats and the need for interoperable, secure communication systems across military branches.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed in this award notice. Without specific subcontracting plans, it's difficult to assess the direct benefit to small businesses from this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The specific agency is the Department of the Navy. Accountability measures are inherent in the contract terms, including performance requirements and the CPFF structure. Transparency is facilitated through contract award databases like FPDS-NG, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MIDS JTRS Program
Tactical Data Links
Defense Communications Systems
Naval Air Systems Command (NAVAIR) Contracts
C4ISR Systems

Risk Flags

Contract Type Risk (CPFF)
Performance Monitoring Complexity
Supply Chain Dependencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to L3 TECHNOLOGIES, INC.. MIDS JTRS SE&I BALANCE

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 $21.4 million.

What is the period of performance?

Start: 2024-12-20. End: 2027-04-30.

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 requires accessing detailed contract databases over several fiscal years. L3 Technologies, Inc. (and its legacy companies like Harris Corporation, which acquired Exelis, a former prime contractor for JTRS components) has been a significant participant in the JTRS program. Past awards would likely show a pattern of multi-year contracts for sustainment, upgrades, and integration, reflecting the program's long lifecycle. The total spending would fluctuate based on program phase, modernization efforts, and congressional appropriations. Without specific historical data for this exact SE&I scope, it's difficult to provide precise figures, but the overall JTRS program has seen billions in investment over its existence.

How does the awarded value of $21.4 million compare to the total program cost for MIDS JTRS sustainment and integration?

The $21.4 million awarded value represents a specific delivery order, likely for a defined period (e.g., 2-3 years) and scope of services related to the MIDS JTRS SE&I effort. The total program cost for MIDS JTRS sustainment and integration is significantly higher, encompassing numerous contracts, research and development, production, and lifecycle support across multiple platforms and services over many years. This single award is a component of a much larger, ongoing defense acquisition program. Comparing this single award value to the entire program's lifecycle cost would be like comparing a single brick to the entire building; it's a necessary part but not representative of the whole.

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

Key Performance Indicators (KPIs) for a contract like the MIDS JTRS SE&I are typically defined within the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). While not explicitly detailed in the award abstract, common KPIs for such defense sustainment and engineering contracts include system availability rates, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), on-time delivery of services and hardware, technical accuracy of engineering documentation, and successful integration testing. Adherence to security protocols and timely resolution of reported issues are also critical. The government monitors these KPIs through regular reporting and performance reviews.

What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific program?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, as the government agrees to pay all allowable costs plus a predetermined fixed fee (profit). This can lead to cost overruns if the contractor's cost estimation is inaccurate or if unforeseen issues arise. However, CPFF is often used when the scope of work is not well-defined or involves significant research and development, making it difficult to estimate costs accurately upfront. For this MIDS JTRS SE&I contract, the risk is managed through detailed cost accounting standards, government oversight of expenditures, and clear definition of allowable costs.

How does the 'Other Communications Equipment Manufacturing' NAICS code (334290) align with the MIDS JTRS system's capabilities?

The North American Industry Classification System (NAICS) code 334290, 'Other Communications Equipment Manufacturing,' broadly covers establishments primarily engaged in manufacturing communication equipment, not elsewhere classified. The MIDS JTRS system is a sophisticated, secure, line-of-sight digital data communication system used for tactical data exchange among aircraft, ground stations, and ships. It integrates multiple communication functions into a single terminal. While MIDS JTRS is a highly specialized system, its core function involves the manufacturing of advanced radio communication hardware and associated components. Therefore, NAICS 334290 serves as an appropriate, albeit general, classification for the manufacturing aspect of such complex communication equipment.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003924R4000

Offers Received: 1

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: $83,329,246

Exercised Options: $83,329,246

Current Obligation: $21,387,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003924D4005

IDV Type: IDC

Timeline