DoD Awards $11.4M Task Order to L3 Technologies for Army SATCOM Sustainment
Contract Overview
Contract Amount: $11,374,117 ($11.4M)
Contractor: L3 Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-23
End Date: 2026-09-22
Contract Duration: 364 days
Daily Burn Rate: $31.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER IS REQUIRED FOR SUSTAINMENT SUPPORT SERVICES FOR ARMY COMMON DATA SATELLITE COMMUNICATIONS.
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $11.4 million to L3 TECHNOLOGIES, INC. for work described as: TASK ORDER IS REQUIRED FOR SUSTAINMENT SUPPORT SERVICES FOR ARMY COMMON DATA SATELLITE COMMUNICATIONS. Key points: 1. Significant contract value for specialized satellite communications sustainment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on critical Army communications infrastructure highlights national security implications. 4. Sector is dominated by large defense contractors, limiting small business opportunities.
Value Assessment
Rating: questionable
The $11.4M award for sustainment services lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if this pricing represents fair market value for similar SATCOM support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $11.4M task order means taxpayers may not be receiving the best possible price for essential SATCOM sustainment services.
Public Impact
Ensures continued operation of vital Army satellite communications. Potential for increased costs due to lack of competitive bidding. Impacts readiness of communication systems for military operations. Highlights reliance on specific contractors for specialized defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Supports critical defense infrastructure
- Ensures continuity of essential services
Sector Analysis
This contract falls within the Defense sector, specifically supporting critical satellite communications. Spending in this area is often high due to the specialized nature and national security importance of the technology.
Small Business Impact
The award to L3 Technologies, a large corporation, does not appear to involve small business participation. The nature of specialized defense contracting often favors established prime contractors.
Oversight & Accountability
Oversight is crucial for sole-source, cost-plus contracts to ensure funds are used efficiently and effectively. The Department of the Army must ensure robust monitoring of L3 Technologies' performance and costs.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may lead to higher costs.
- Lack of transparency in pricing.
- Potential for contractor lock-in.
- Reliance on a single provider for critical infrastructure.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 million to L3 TECHNOLOGIES, INC.. TASK ORDER IS REQUIRED FOR SUSTAINMENT SUPPORT SERVICES FOR ARMY COMMON DATA SATELLITE COMMUNICATIONS.
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 $11.4 million.
What is the period of performance?
Start: 2025-09-23. End: 2026-09-22.
What justification was provided for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically need to demonstrate that only one source can meet the requirement due to unique capabilities, urgent need, or lack of viable alternatives. Without this documentation, it's difficult to assess if taxpayer funds were managed responsibly or if a more competitive approach was feasible.
How does the cost-plus fixed fee structure impact the contractor's incentive to control costs?
A Cost Plus Fixed Fee (CPFF) contract covers allowable costs plus a negotiated fixed fee. While the fixed fee provides some incentive for the contractor to manage costs efficiently to maximize profit, the primary risk of cost overruns still lies with the government. This structure requires diligent oversight to ensure costs remain reasonable and within scope.
What are the performance metrics and penalties associated with this task order to ensure effectiveness?
Effective oversight requires clearly defined performance metrics and potential penalties for non-performance. For this SATCOM sustainment task order, metrics should focus on uptime, response times, and quality of service. Understanding these measures and any associated penalties is key to assessing the government's ability to hold L3 Technologies accountable for delivering the required support.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $25,433,646
Exercised Options: $25,433,646
Current Obligation: $11,374,117
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $33,238
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56JSR22D0001
IDV Type: IDC
Timeline
Start Date: 2025-09-23
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2025-12-23
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