DoD's $311.7M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts

Contract Overview

Contract Amount: $311,700,452 ($311.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-08-30

End Date: 2025-12-31

Contract Duration: 3,045 days

Daily Burn Rate: $102.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACAT III BIG SAFARI

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $311.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI Key points: 1. Significant contract value of over $311 million. 2. Awarded to a single, large defense contractor, L3Harris. 3. Potential for limited competition due to the nature of specialized aircraft parts. 4. Spending is within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: fair

The contract value of $311.7M is substantial. Benchmarking against similar ACAT III programs is difficult without more specific details on the 'BIG SAFARI' system's components and services. The fixed-price nature suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited or sole-source approach. This likely impacts price discovery, as there was no direct comparison of offers from multiple vendors. The specific justification for not competing is crucial for assessing value.

Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a fully competed contract. Transparency in the justification for limited competition is key to ensuring fair pricing.

Public Impact

Supports critical Department of the Air Force operations through specialized aircraft parts. Ensures continued availability of essential components for national defense assets. Impacts the aerospace and defense manufacturing sector, specifically in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Contract duration of over 8 years could lead to cost creep if not managed.
No indication of small business participation.

Positive Signals

Firm Fixed Price contract type helps to cap costs.
Awarded to a known defense contractor with relevant experience.
Supports critical national defense capabilities.

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 are difficult without knowing the specific components, but large sole-source awards can be costly.

Small Business Impact

The data indicates that small businesses were not involved in this specific award (sb: false). There is no information provided on whether subcontracting opportunities were offered or utilized by the prime contractor.

Oversight & Accountability

The 'NOT COMPETED' status warrants close oversight to ensure the justification for limited competition is sound and that pricing is reasonable. The Department of Defense should monitor contract performance and costs closely throughout its duration.

Related Government Programs

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

Risk Flags

Lack of competition
Long contract duration
No small business participation identified
Potential for cost overruns
Limited transparency on justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $311.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI

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 $311.7 million.

What is the period of performance?

Start: 2017-08-30. End: 2025-12-31.

What is the specific justification for awarding this contract on a limited competition basis, and how does it ensure fair and reasonable pricing?

The justification for limited competition is critical for understanding why multiple vendors were not solicited. Typically, this involves reasons like unique capabilities, urgent needs, or lack of market availability. Without this justification, it's difficult to assess if the government received fair and reasonable pricing, as the absence of competitive bids removes a key mechanism for price discovery and validation.

How does the $311.7M contract value compare to similar ACAT III programs or specialized aircraft part procurements, and what are the associated risks?

Benchmarking this $311.7M contract against similar ACAT III programs is challenging without detailed specifications of the 'BIG SAFARI' system. However, such a large, non-competed award carries inherent risks of overpricing and potential inefficiencies. The long duration (over 8 years) amplifies these risks, necessitating robust government oversight to ensure the contractor remains accountable for performance and cost control.

What is the expected impact of this contract on the operational readiness and technological advancement of the Air Force's aircraft, and are there any effectiveness concerns?

This contract is intended to ensure the continued operational readiness of specific Air Force aircraft by providing necessary parts and auxiliary equipment. The effectiveness hinges on the timely delivery of high-quality components and the contractor's ability to meet technical specifications. Potential concerns include delays or quality issues that could impact aircraft availability, especially given the long contract period and lack of direct competition.

Industry Classification

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

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: $314,524,915

Exercised Options: $314,524,915

Current Obligation: $311,700,452

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $252,104,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline