DoD's $380M Big Safari ISR contract awarded to L3Harris without competition

Contract Overview

Contract Amount: $37,953,195 ($38.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2014-06-02

End Date: 2017-12-18

Contract Duration: 1,295 days

Daily Burn Rate: $29.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT 3, BIG SAFARI, YAF ISR

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT 3, BIG SAFARI, YAF ISR Key points: 1. Significant investment in intelligence, surveillance, and reconnaissance (ISR) capabilities. 2. Sole-source award to L3Harris raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. The contract falls within the broad 'Aircraft Manufacturing' sector.

Value Assessment

Rating: questionable

The contract's value of $379.5 million over 1295 days is substantial. Without competitive benchmarking, it's difficult to assess if this price is reasonable compared to similar ISR systems or aircraft manufacturing contracts.

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 potentially leads to higher costs for the government as there was no market pressure to drive down prices.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these ISR capabilities, as the government did not leverage market forces to secure the best possible price.

Public Impact

Taxpayers funded a significant sole-source contract for advanced ISR technology. The Department of Defense received critical intelligence gathering assets. L3Harris Technologies secured a major sole-source award, impacting market dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Acquisition of critical ISR capabilities
Firm Fixed Price contract type

Sector Analysis

This contract falls under the Defense sector, specifically within aircraft manufacturing for intelligence, surveillance, and reconnaissance (ISR) platforms. Spending in this area is critical for national security but often involves high costs and specialized technologies.

Small Business Impact

The data indicates this was a large contract awarded to L3Harris Technologies. There is no information provided to suggest any subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The ACAT 3 designation suggests a high-level program, implying significant oversight. However, the sole-source nature of the award warrants scrutiny to ensure the price paid was fair and reasonable.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency in price determination
Risk of vendor lock-in
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT 3, BIG SAFARI, YAF ISR

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 $38.0 million.

What is the period of performance?

Start: 2014-06-02. End: 2017-12-18.

What was the justification for awarding this significant contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?

The justification for a sole-source award typically involves unique capabilities or urgent needs. To ensure a fair and reasonable price, the DoD would likely conduct a detailed cost analysis, review historical pricing, and potentially negotiate profit margins. However, without competition, the government lacks the leverage of market-based pricing.

What are the long-term risks associated with relying on sole-source contracts for critical defense systems like ISR platforms?

Long-term reliance on sole-source contracts can stifle innovation by reducing competitive pressure, potentially leading to technological stagnation. It also creates vendor lock-in, making it difficult and expensive to switch providers or integrate new technologies. Furthermore, it can lead to sustained higher costs for taxpayers and reduce overall government agility in acquiring advanced capabilities.

How effectively did this contract deliver the intended ISR capabilities, and what was the overall value proposition for the DoD?

The provided data does not contain information on the effectiveness or specific deliverables of the ISR capabilities acquired. Therefore, assessing the overall value proposition is not possible. A full evaluation would require performance metrics, operational feedback, and an analysis of whether the acquired systems met or exceeded mission requirements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: L3harris Technologies, Inc (UEI: 004203337)

Address: 7500 MAEHR RD, WACO, TX, 76705

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

Financial Breakdown

Contract Ceiling: $37,953,195

Exercised Options: $37,953,195

Current Obligation: $37,953,195

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $19,289,320

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline