DoD Awards $5.6M Contract for SF1 Radio Development to L3 Technologies, Inc
Contract Overview
Contract Amount: $5,578,919 ($5.6M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-17
End Date: 2027-07-16
Contract Duration: 729 days
Daily Burn Rate: $7.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SF1 RADIO DEVELOPMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123
Plain-Language Summary
Department of Defense obligated $5.6 million to L3 TECHNOLOGIES, INC. for work described as: SF1 RADIO DEVELOPMENT Key points: 1. Contract value of $5.6 million for radio development. 2. L3 Technologies, Inc. is the sole awardee. 3. Potential risks associated with sole-source procurements. 4. Spending falls within the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without available benchmark data, assessing the pricing's reasonableness against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition raises concerns about whether the government secured the best possible price for this radio development.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The specific capabilities of the SF1 radio and its impact on military operations are not detailed. Dependence on a single vendor for critical communication equipment development could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of public benchmark data
Positive Signals
- Specific development project for military communications
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this sector can vary widely based on technological advancements and defense needs. Benchmarks are difficult to establish without more specific product details.
Small Business Impact
The awardee, L3 Technologies, Inc., is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight will be crucial given the sole-source and cost-plus nature of the contract to ensure funds are used efficiently and effectively towards the development goals.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type increases risk of cost overruns.
- Lack of publicly available benchmark data hinders value assessment.
- Potential for contractor to lack strong cost-control incentives.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.6 million to L3 TECHNOLOGIES, INC.. SF1 RADIO DEVELOPMENT
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 $5.6 million.
What is the period of performance?
Start: 2025-07-17. End: 2027-07-16.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific details, it's difficult to ascertain the exact reason, but it implies a lack of readily available alternatives or a critical dependency on L3 Technologies' specific expertise or product.
What are the potential risks associated with a Cost Plus Fixed Fee contract for radio development?
Cost Plus Fixed Fee contracts carry risks of cost overruns if the contractor's actual costs exceed estimates, as the government absorbs these costs. The fixed fee provides profit incentive, but the contractor may have less motivation to control costs rigorously compared to fixed-price contracts. This necessitates strong government oversight to manage expenses.
How will the effectiveness of the SF1 radio development be measured and ensured?
Effectiveness will likely be measured against specific technical performance requirements and operational capabilities outlined in the contract's statement of work. Milestones, testing phases, and final acceptance criteria will be key. The Department of the Navy's program office will be responsible for monitoring progress and ensuring the delivered product meets the intended military application.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003923R4013
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 9020 BALBOA AVE, SAN DIEGO, CA, 92123
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,802,824
Exercised Options: $14,802,824
Current Obligation: $5,578,919
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003923D4000
IDV Type: IDC
Timeline
Start Date: 2025-07-17
Current End Date: 2027-07-16
Potential End Date: 2027-07-16 00:00:00
Last Modified: 2025-12-04
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