DoD Awards $30.4M for Photonics Depot Services to L3 Technologies, Inc
Contract Overview
Contract Amount: $30,417,552 ($30.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-26
End Date: 2024-06-23
Contract Duration: 1,458 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHOTONICS DEPOT SERVICES
Place of Performance
Location: NORTHAMPTON, HAMPSHIRE County, MASSACHUSETTS, 01060
Plain-Language Summary
Department of Defense obligated $30.4 million to L3 TECHNOLOGIES, INC. for work described as: PHOTONICS DEPOT SERVICES Key points: 1. Significant contract value of $30.4 million over 4 years. 2. Sole-source award to L3 Technologies, Inc. raises competition concerns. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Optical Instrument and Lens Manufacturing, critical for defense applications.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, coupled with a lack of competition, suggests potential for higher-than-necessary costs. Benchmarking against similar sole-source contracts in optical manufacturing would be prudent.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may result in a less favorable price for the government.
Taxpayer Impact: The absence of competition for a substantial contract value raises concerns about taxpayer value and the potential for inflated costs.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. Lack of competition could stifle innovation in the optical instrument sector. Dependence on a single contractor for critical photonics services poses a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Contract supports critical defense needs
- Long-term award provides stability
Sector Analysis
The Optical Instrument and Lens Manufacturing sector is vital for defense, encompassing advanced technologies. Spending in this area can vary widely based on technological advancements and specific program needs.
Small Business Impact
There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses within the defense supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. The Defense Contract Management Agency is responsible for oversight.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- No small business participation noted.
- Potential for vendor lock-in due to sole-source award.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to L3 TECHNOLOGIES, INC.. PHOTONICS DEPOT 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $30.4 million.
What is the period of performance?
Start: 2020-06-26. End: 2024-06-23.
What is the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically cite reasons like unique capabilities, urgent needs, or lack of other responsible sources. Without this justification, it's difficult to assess if taxpayer funds are being used efficiently or if competitive alternatives were adequately explored.
How does the Cost Plus Fixed Fee structure impact cost control and contractor incentive?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF can be useful for research and development or when cost uncertainty is high, it offers less incentive for the contractor to control costs compared to fixed-price contracts. This structure requires robust government oversight to manage expenditures effectively.
What are the long-term implications of relying on a single contractor for these photonics services?
Long-term reliance on a single contractor can lead to vendor lock-in, reduced bargaining power, and potential complacency. It also poses a risk if the contractor experiences financial difficulties or strategic shifts. Diversifying the supplier base or actively seeking competitive re-competition in the future would mitigate these risks.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6660420RG913
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 50 PRINCE ST, NORTHAMPTON, MA, 01060
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: $32,793,462
Exercised Options: $32,793,462
Current Obligation: $30,417,552
Actual Outlays: $5,662,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6660419DG900
IDV Type: IDC
Timeline
Start Date: 2020-06-26
Current End Date: 2024-06-23
Potential End Date: 2024-06-23 00:00:00
Last Modified: 2025-10-22
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