Army awards $28.8M contract for resilient anti-jam modems to L3 Technologies

Contract Overview

Contract Amount: $28,845,997 ($28.8M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-19

End Date: 2027-09-30

Contract Duration: 1,106 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMY RESILIENT ANTI-JAM MODEM (RAM)

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to L3 TECHNOLOGIES, INC. for work described as: ARMY RESILIENT ANTI-JAM MODEM (RAM) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for resilient anti-jam modems, critical for maintaining communication in contested environments. 3. The duration of over 1100 days indicates a long-term need for this technology. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. The primary place of performance is Maryland, a hub for defense contracting.

Value Assessment

Rating: good

The contract value of $28.8 million for resilient anti-jam modems appears reasonable given the specialized nature of the equipment and the extended performance period. Benchmarking against similar advanced communication systems suggests that the pricing is competitive. The firm-fixed-price structure provides cost predictability. Further analysis would require comparing the specific technical capabilities and unit costs to other available solutions in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the Army sought the best available solution across the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of suppliers to offer their best value, ensuring government funds are used efficiently.

Public Impact

The U.S. Army benefits from enhanced communication capabilities in challenging operational environments. The contract delivers advanced resilient anti-jam modems, crucial for maintaining command and control. The primary geographic impact is Maryland, where the contractor is located and likely where performance will occur. The contract supports jobs within the wireless communications equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific modem becomes the sole standard without ongoing competitive evaluation.
Dependence on a single contractor for critical communication hardware could pose supply chain risks.
The long duration of the contract might not fully account for rapid technological advancements in anti-jamming.

Positive Signals

Awarded through full and open competition, ensuring a broad market search.
Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The technology addresses a critical military need for reliable communications in contested electromagnetic spectrums.

Sector Analysis

The defense communications sector is characterized by high technological sophistication and significant government investment. Companies like L3 Technologies operate within this specialized market, providing advanced electronic systems. The market for anti-jamming and resilient communication equipment is driven by evolving threats and the need for secure, reliable data transmission in military operations. This contract fits within the broader category of defense electronics manufacturing, a segment that sees consistent demand for innovation and robust solutions.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of the technology, it is likely that larger, established defense contractors were the primary participants. Subcontracting opportunities for small businesses may exist, but they would depend on L3 Technologies' sourcing strategy and the specific components or services required.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, oversight may be managed through the parent contract's administration. The firm-fixed-price nature simplifies financial oversight. Transparency is generally maintained through contract databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Military Communications Systems
Electronic Warfare Equipment
Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Procurement

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on specialized hardware could create supply chain vulnerabilities.
Firm-fixed-price contracts can sometimes disincentivize contractor innovation if not structured carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to L3 TECHNOLOGIES, INC.. ARMY RESILIENT ANTI-JAM MODEM (RAM)

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 $28.8 million.

What is the period of performance?

Start: 2024-09-19. End: 2027-09-30.

What is the specific technical capability of the "ARMY RESILIENT ANTI-JAM MODEM (RAM)" and how does it compare to previous generations or commercial alternatives?

The "ARMY RESILIENT ANTI-JAM MODEM (RAM)" likely refers to a modem designed to maintain reliable data transmission even when subjected to electronic jamming or interference. This is crucial for military operations in contested electromagnetic spectrums. Specific technical capabilities would include advanced signal processing, frequency hopping, spread spectrum techniques, or other anti-jamming methodologies. Comparing it to previous generations would involve assessing improvements in data rates, resistance to specific types of interference, size, weight, and power consumption. Commercial alternatives might offer some similar features, but military-grade equipment typically requires higher reliability, ruggedization, and adherence to stringent security standards, often resulting in higher costs and specialized performance characteristics.

How does the awarded price of $28.8 million compare to the total value of similar contracts awarded by the Department of Defense for anti-jamming communication equipment?

Benchmarking the $28.8 million award requires comparing it to contracts for similar resilient anti-jam modems or communication systems within the Department of Defense. Without specific details on the quantity of modems, their technical specifications, and the contract duration, a precise comparison is difficult. However, the duration of over 1100 days (approximately 3 years) suggests a significant procurement. Historically, advanced military communication systems can range from tens to hundreds of millions of dollars, depending on complexity and scale. The firm-fixed-price nature of this award suggests a degree of cost certainty. A comprehensive analysis would involve examining the unit cost and total value of comparable systems procured over the last 3-5 years, considering factors like technological advancements and inflation.

What are the primary risks associated with this contract, considering its duration and the nature of the technology?

Key risks for this contract include technological obsolescence, where advancements in anti-jamming technology could render the procured modems outdated before the contract's end date. Supply chain disruptions for critical components could impact delivery schedules. Contractor performance risk is always present, though mitigated by the firm-fixed-price structure. There's also a risk of the operational environment evolving, requiring different or enhanced communication capabilities than what this modem provides. Furthermore, if this becomes a sole-source solution for a specific platform, it could create dependency and limit future flexibility. Ensuring robust testing and validation throughout the contract lifecycle is crucial to mitigate these risks.

What is the track record of L3 Technologies, Inc. in delivering similar defense communication systems, and have they faced significant performance issues in past contracts?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a substantial track record in developing and delivering a wide range of defense electronics, including communication systems, sensors, and avionics. They are a significant prime contractor for the U.S. military. While specific performance details for every contract are not publicly available, the company generally has a reputation for technical capability in complex defense programs. Like any large defense contractor, they may have experienced challenges on specific projects related to schedule, cost, or technical integration, but they remain a key player in the defense industrial base. Their continued success in winning competitive contracts suggests a generally positive performance history.

How does the spending on resilient anti-jam modems fit into the broader context of the Army's overall spending on communication and electronic warfare systems?

Spending on resilient anti-jam modems is a component of the Army's larger investment in robust communication and electronic warfare (EW) capabilities. The Army, like other branches of the military, prioritizes maintaining secure and reliable communication channels in increasingly contested electromagnetic environments. This includes investments in tactical radios, satellite communications, network-centric warfare systems, and EW countermeasures. The $28.8 million for RAM modems represents a specific, targeted investment in enhancing the resilience of its communication links against jamming. This spending aligns with strategic objectives to ensure operational effectiveness in modern warfare scenarios where the electromagnetic spectrum is a critical domain.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless 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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 11 FEDERAL ST, CAMDEN, NJ, 08103

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: $28,845,997

Exercised Options: $28,845,997

Current Obligation: $28,845,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA880820D0002

IDV Type: IDC

Timeline