DoD Awards $26M for 245 Roadmaster Systems to L3 Technologies, Inc
Contract Overview
Contract Amount: $25,999,487 ($26.0M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-19
End Date: 2013-07-22
Contract Duration: 276 days
Daily Burn Rate: $94.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 245 ROADMASTER 3.75 SYSTEMS, SPARES, AND SUPPORT.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to L3 TECHNOLOGIES, INC. for work described as: 245 ROADMASTER 3.75 SYSTEMS, SPARES, AND SUPPORT. Key points: 1. Contract awarded for specialized wireless telecommunications systems. 2. L3 Technologies, Inc. is the sole provider for this specific system. 3. High cost per unit suggests specialized or proprietary technology. 4. Limited competition raises concerns about price discovery and value for money.
Value Assessment
Rating: questionable
The total award of $25,999,487.35 for 245 units results in a per-unit cost of approximately $106,120. This appears high compared to commercial off-the-shelf wireless communication systems, suggesting potential overpricing or significant customization.
Cost Per Unit: $106,120
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition for this $26 million contract likely resulted in a higher cost to taxpayers than if it had been competitively bid.
Public Impact
Taxpayers may have paid a premium due to the sole-source nature of the award. The Department of the Army is acquiring critical wireless telecommunications infrastructure. The specific application and necessity of the 'Roadmaster' system are unclear to the public. Reliance on a single vendor could pose long-term supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High per-unit cost
- Lack of transparency in pricing justification
- Potential for vendor lock-in
Positive Signals
- Acquisition of necessary defense technology
- Contract awarded to a known defense contractor
Sector Analysis
The 'Wireless Telecommunications Carriers (except Satellite)' sector, NAICS 517210, typically involves infrastructure and services. However, this contract appears to be for specialized equipment rather than standard carrier services. Benchmarks are difficult without knowing the specific system's capabilities.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large corporation, L3 Technologies, Inc.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the price paid was fair and reasonable, and to understand why competition was not pursued.
Related Government Programs
- Wireless Telecommunications Carriers (except Satellite)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- High per-unit cost warrants further investigation.
- Lack of public justification for sole-source procurement.
- Potential for overpayment by taxpayers.
- No indication of small business participation.
Tags
wireless-telecommunications-carriers-exc, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to L3 TECHNOLOGIES, INC.. 245 ROADMASTER 3.75 SYSTEMS, SPARES, AND SUPPORT.
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 Army).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2012-10-19. End: 2013-07-22.
What specific capabilities does the '245 ROADMASTER 3.75 SYSTEMS' offer that justify its high per-unit cost and sole-source procurement?
The high per-unit cost of approximately $106,120 suggests the Roadmaster 3.75 system likely possesses highly specialized, potentially proprietary, capabilities critical for specific Department of the Army operations. Without detailed technical specifications or a justification for sole-source procurement, it's impossible to definitively assess the value. However, such costs often reflect advanced technology, unique integration requirements, or essential, non-commercial components.
What are the primary risks associated with awarding a $26 million contract on a sole-source basis for wireless telecommunications systems?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for vendor lock-in limiting future flexibility and innovation, and reduced transparency in the acquisition process. Taxpayers may not receive the best value for their money. Additionally, reliance on a single supplier can create vulnerabilities in the supply chain and long-term support.
How effective is the Department of the Army in ensuring fair pricing and value for money when using sole-source contracts for specialized equipment like the Roadmaster system?
The effectiveness is questionable without further information. Sole-source contracts inherently reduce competitive pressure, making robust price negotiation and justification critical. While the Army may have internal mechanisms for price analysis, the lack of a competitive bid makes it difficult for external observers to confirm optimal value. The high per-unit cost here raises concerns about the effectiveness of their price discovery in this instance.
Industry Classification
NAICS: Information › Wireless Telecommunications Carriers (except Satellite) › Wireless Telecommunications Carriers (except Satellite)
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 613 GLOBAL WAY, LINTHICUM HEIGHTS, MD, 21090
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: $25,999,487
Exercised Options: $25,999,487
Current Obligation: $25,999,487
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-10-19
Current End Date: 2013-07-22
Potential End Date: 2013-07-22 00:00:00
Last Modified: 2016-03-18
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