DoD awards L3Harris $59M for aircraft parts over 12 years, with no competition

Contract Overview

Contract Amount: $59,073,153 ($59.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2003-12-15

End Date: 2015-09-15

Contract Duration: 4,292 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $59.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: Key points: 1. Significant contract value of $59 million awarded over a 12-year period. 2. Sole-source award to L3Harris Technologies raises questions about price discovery. 3. Long contract duration may indicate a need for ongoing support or specialized services. 4. The 'Other Aircraft Parts' category suggests a broad range of potential components.

Value Assessment

Rating: questionable

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not closely managed. Without competitive bidding, it's difficult to assess if the $59 million price tag represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning no other vendors were considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a contract of this magnitude could result in millions of dollars in unnecessary spending.

Public Impact

Taxpayers may be overpaying for aircraft parts due to the absence of competitive bidding. The long duration of the contract could lock the government into potentially suboptimal pricing for over a decade. Lack of transparency in the procurement process hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Long contract duration (12 years)

Positive Signals

Established vendor (L3Harris)

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks for similar sole-source contracts are difficult to establish without competitive data.

Small Business Impact

The data indicates this was a large sole-source award to a major contractor, L3Harris Technologies. There is no indication of small business participation in this specific contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. The Defense Contract Management Agency's role is crucial in monitoring performance and costs.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns (Time and Materials)
Long contract duration may not reflect current market prices
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. See the official description on USAspending.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $59.1 million.

What is the period of performance?

Start: 2003-12-15. End: 2015-09-15.

What specific justification was provided for the sole-source award, and were alternative procurement methods considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically must demonstrate that only one responsible source can provide the required supplies or services. Without this documentation, it's impossible to assess if the government missed opportunities for better pricing or innovation through a competitive process.

How were the Time and Materials rates established and negotiated to ensure cost-effectiveness over the 12-year period?

Time and Materials contracts can be prone to cost escalation. Understanding the negotiation process for labor rates, overhead, and material markups is essential. Regular reviews and audits by the contracting officer are necessary to prevent overcharging and ensure the rates remain competitive throughout the contract's long duration.

What performance metrics and deliverables were established to measure the effectiveness and value of the aircraft parts provided?

For a contract of this size and duration, clear performance standards are vital. Defining key performance indicators (KPIs) related to quality, delivery timeliness, and technical specifications ensures the contractor meets expectations. Tracking these metrics allows for objective assessment of the contract's value and the contractor's performance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline