DoD Awards $127M to L3 Technologies for Aircraft Parts, Lacking Competition
Contract Overview
Contract Amount: $127,318,060 ($127.3M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-27
End Date: 2022-04-30
Contract Duration: 1,311 days
Daily Burn Rate: $97.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF, ORDERING PERIOD 2 PRICING
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $127.3 million to L3 TECHNOLOGIES, INC. for work described as: IGF::OT::IGF, ORDERING PERIOD 2 PRICING Key points: 1. Significant contract value of $127.3 million awarded to L3 Technologies. 2. Lack of competition raises concerns about price discovery and potential overspending. 3. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. Awarded as a Delivery Order under an unspecified contract vehicle.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This lack of competition hinders price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense relies on this supplier for critical aircraft components. Transparency in pricing and justification for non-competitive awards is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for overpricing
Positive Signals
- Supports critical aircraft parts manufacturing
- Long-term contract duration
Sector Analysis
This contract is within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending in this sector is often driven by national security needs, but competitive sourcing is vital to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine potential impacts on small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the government received the best value. Documentation justifying the sole-source or limited competition is essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- No clear justification for non-competition provided
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ut, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $127.3 million to L3 TECHNOLOGIES, INC.. IGF::OT::IGF, ORDERING PERIOD 2 PRICING
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 $127.3 million.
What is the period of performance?
Start: 2018-09-27. End: 2022-04-30.
What was the justification for not competing this significant contract, and how was the fixed fee determined?
The justification for not competing this contract is not provided in the data. Typically, non-competitive awards are made when only one source can fulfill the requirement, or in urgent situations. The determination of the fixed fee would involve an analysis of the contractor's estimated costs and a reasonable profit margin, but without competitive benchmarks, assessing its fairness is challenging.
What are the specific risks associated with a Cost Plus Fixed Fee contract awarded without competition for aircraft parts?
The primary risk is that the government may overpay because there was no competitive pressure to drive down prices. The contractor has less incentive to control costs compared to fixed-price contracts. Without competition, the government also lacks a benchmark to validate the reasonableness of the fixed fee and overall costs incurred.
How effective is this contract in ensuring the timely and cost-efficient supply of critical aircraft parts to the Department of Defense?
The effectiveness in terms of timely supply is suggested by the contract duration and award type. However, the cost-efficiency is questionable due to the lack of competition and the Cost Plus Fixed Fee structure. While it ensures supply, it may not be the most cost-effective method, potentially impacting overall program value for the DoD.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
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: $127,318,060
Exercised Options: $127,318,060
Current Obligation: $127,318,060
Subaward Activity
Number of Subawards: 70
Total Subaward Amount: $21,730,826
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J17D0070
IDV Type: IDC
Timeline
Start Date: 2018-09-27
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 12:04:00
Last Modified: 2021-10-28
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