DoD's $230M IGF BIG SAFARI JM-S4 COMBO Contract Awarded to L3Harris Technologies

Contract Overview

Contract Amount: $229,812,711 ($229.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2015-11-25

End Date: 2016-11-30

Contract Duration: 371 days

Daily Burn Rate: $619.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF ACAT III BIG SAFARI JM-S4 COMBO

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $229.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI JM-S4 COMBO Key points: 1. The contract, valued at $229.8 million, is for the IGF BIG SAFARI JM-S4 COMBO. 2. Awarded to L3Harris Technologies Integrated Systems L.P., this represents a significant expenditure in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 3. The contract was not competed, raising questions about potential price discovery and value for taxpayer money. 4. The duration of the contract was 371 days, with a delivery order issued under a larger award.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a competitive bidding process, it's difficult to assess if the $229.8 million price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not have received the best possible price, potentially leading to inefficient use of funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The specific nature of the 'BIG SAFARI JM-S4 COMBO' is not detailed, limiting public understanding of the expenditure. Oversight of sole-source contracts is crucial to ensure fair pricing and effective delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Cost Plus Fixed Fee contract type
Limited public information on the 'COMBO' system

Positive Signals

Awarded to a known defense contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for national defense, but competitive procurement is essential to ensure cost-effectiveness.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation. There is no indication that small businesses were involved in this specific sole-source contract, missing an opportunity for small business participation.

Oversight & Accountability

Given the sole-source nature of this award, robust oversight by the Department of the Air Force is critical to ensure the contractor is delivering value and managing costs effectively. Transparency regarding the justification for the sole-source award is also important.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Fixed Fee contract increases cost risk.
Limited transparency on system capabilities.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $229.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF ACAT III BIG SAFARI JM-S4 COMBO

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $229.8 million.

What is the period of performance?

Start: 2015-11-25. End: 2016-11-30.

What specific capabilities or components does the 'BIG SAFARI JM-S4 COMBO' provide, and why was a sole-source award necessary?

The 'BIG SAFARI JM-S4 COMBO' likely refers to a specialized intelligence, surveillance, and reconnaissance (ISR) system or component, possibly related to airborne platforms. A sole-source award is typically justified when only one vendor possesses the unique technology, expertise, or existing infrastructure required, or in cases of urgent and compelling need where competition is impractical. Specific details are often classified or proprietary.

How does the Cost Plus Fixed Fee structure impact the government's risk in this contract, especially without competition?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Without competition, the government bears a higher risk of inflated costs, as the contractor has less incentive to control expenses. The fixed fee, however, provides some predictability in profit, but the overall cost to the government can escalate if cost controls are weak.

What is the potential long-term impact of awarding such a large contract without competition on future procurement strategies in this niche sector?

Repeated sole-source awards without strong justification can stifle innovation and competition in a niche sector. It may signal to other potential vendors that market entry is difficult, potentially leading to a lack of future competition and higher prices for the government over time. This can also create a dependency on a single supplier, posing a risk to national security if that supplier faces issues.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $229,812,711

Exercised Options: $229,812,711

Current Obligation: $229,812,711

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $15,640,238

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862011G4025

IDV Type: BOA

Timeline