Air Force awards $12.8M for bomb racks, with L3Harris Technologies Inc. as sole provider

Contract Overview

Contract Amount: $12,806,586 ($12.8M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-31

End Date: 2011-09-30

Contract Duration: 1,156 days

Daily Burn Rate: $11.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRU 46 BOMB RACK

Place of Performance

Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: BRU 46 BOMB RACK Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. Long-term contract duration suggests a critical and ongoing need for the specified equipment. 3. The award was made to a single vendor, indicating potential lack of market competition. 4. Fixed-price contract type aims to control costs, but sole-source nature limits negotiation leverage. 5. The specific part number suggests a niche requirement within aircraft maintenance. 6. No small business participation noted, potentially missing opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $12.8 million over approximately three years appears reasonable for specialized aircraft components. However, without competitive bidding, it's difficult to benchmark the true value for money. The fixed-price structure provides some cost certainty, but the lack of competition means the government may not have secured the lowest possible price. Further analysis would require comparing this award to similar sole-source procurements for comparable aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies, Inc., was solicited. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of multiple bidders significantly limits price discovery and negotiation opportunities for the government.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as competition is absent, potentially resulting in less efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Air Force, ensuring operational readiness of aircraft requiring these specific bomb racks. The service delivered is the supply of critical aircraft components essential for mission capability. The geographic impact is national, supporting Air Force operations across various bases. Workforce implications are primarily within L3Harris Technologies, Inc., maintaining specialized manufacturing capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to single-bidder solicitation.
Potential for vendor lock-in if alternative suppliers are not viable.
No indication of small business participation, missing opportunities for economic inclusion.

Positive Signals

Fixed-price contract type provides cost predictability for the government.
Award to an established contractor suggests reliability in supply chain.
Long-term duration indicates a stable and predictable supply for a critical need.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components can be niche, often dominated by a few key suppliers due to proprietary technology, complex manufacturing processes, or existing integration with specific aircraft platforms. Comparable spending benchmarks would involve analyzing other sole-source procurements for similar high-value, specialized aircraft components within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included by the prime. This could represent a missed opportunity to foster small business growth within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Procurement
Air Force Logistics
Bomb Rack Systems

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to L3HARRIS TECHNOLOGIES, INC.. BRU 46 BOMB RACK

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

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 $12.8 million.

What is the period of performance?

Start: 2008-07-31. End: 2011-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded to L3Harris Technologies, Inc. Sole-source awards are typically justified when only one responsible source is available, or when there is a compelling urgency, or when the nature of the supply requires standardization with existing equipment. Without further documentation from the agency, the precise justification remains unclear. However, given the specialized nature of aircraft components, it's possible that L3Harris holds unique manufacturing capabilities, patents, or that the bomb rack is an integral part of a specific Air Force aircraft system for which they are the sole qualified supplier. This lack of competition means the government did not explore alternative suppliers or potentially lower-cost options.

How does the contract value of $12.8 million compare to similar bomb rack procurements?

Benchmarking the $12.8 million contract value for bomb racks is challenging without more specific details on the type of bomb rack, the aircraft it supports, and the quantity procured. The provided data indicates a duration of 1156 days (approximately 3.17 years) and a base value of $11,078, which seems unusually low compared to the total award amount of $12,806,586. This suggests the $11,078 might be an initial or base amount, with the total award representing the ceiling or estimated value over the contract's life. Given the sole-source nature, direct price comparisons are difficult. However, for specialized military hardware, costs can vary significantly based on technological complexity, required certifications, and integration needs. A comprehensive comparison would require access to historical competitive bids for similar items or data on L3Harris's pricing for comparable products.

What are the potential risks associated with a sole-source award for critical aircraft parts?

Sole-source awards for critical aircraft parts carry several risks. Firstly, the absence of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Taxpayers may end up paying more than necessary. Secondly, it can foster vendor dependency, making the government reliant on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to discontinue the product line. Thirdly, the lack of competitive pressure might reduce incentives for the contractor to innovate or improve product quality over time. Finally, it limits the government's ability to explore alternative technologies or suppliers that might offer better performance or value.

What is L3Harris Technologies, Inc.'s track record with the Department of Defense for similar contracts?

L3Harris Technologies, Inc. is a major defense contractor with a substantial history of supplying various components and systems to the Department of Defense. While specific details on their track record for bomb racks are not provided in this data snippet, the company is known for its expertise in aerospace and defense electronics, communication systems, and integrated mission systems. Their extensive experience suggests a capability to meet the technical requirements for such components. However, a thorough assessment would involve reviewing their past performance ratings, any past performance issues or disputes related to similar contracts, and their overall financial stability as a large, publicly traded corporation.

How does this contract fit into the broader context of Air Force aircraft maintenance and modernization spending?

This contract for bomb racks, valued at $12.8 million, represents a component of the Air Force's broader spending on aircraft sustainment and operational readiness. Aircraft maintenance and modernization are critical areas of defense spending, encompassing everything from routine repairs and spare parts to upgrades and system overhauls. Contracts like this ensure that specific aircraft platforms remain mission-capable. While $12.8 million is a significant sum for a specific component, it is likely a small fraction of the total annual budget allocated to Air Force aircraft sustainment, which can run into billions of dollars. Understanding its place requires viewing it alongside other contracts for engines, avionics, airframes, and support equipment.

Industry Classification

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

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,771,394

Exercised Options: $12,806,586

Current Obligation: $12,806,586

Contract Characteristics

Cost or Pricing Data: YES

Timeline