DoD awards $45.1M for Aircraft Parts to L3Harris, a sole-source contract with limited competition

Contract Overview

Contract Amount: $45,125,352 ($45.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-03-23

End Date: 2019-07-31

Contract Duration: 860 days

Daily Burn Rate: $52.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF:: ACAT III BIG SAFARI RJ-8 MITD/PDM

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF:: ACAT III BIG SAFARI RJ-8 MITD/PDM Key points: 1. Contract awarded to L3Harris Technologies for aircraft parts. 2. Significant value of $45.1M highlights reliance on established suppliers. 3. Sole-source award raises questions about competitive pricing and taxpayer value. 4. The contract falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $45.1M for aircraft parts appears high given the lack of competition. Benchmarking against similar sole-source contracts or open market prices would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium for these aircraft parts due to the absence of competitive pressure.

Public Impact

Taxpayers may be overpaying for essential aircraft components due to the lack of competition. The Department of Defense's reliance on a single supplier could create future supply chain vulnerabilities. Limited transparency in pricing for this sole-source contract hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Award to established supplier
Supports existing aircraft platforms

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can be substantial, especially for defense applications, but competitive bidding is crucial for cost efficiency.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large corporation, and there is no indication of small business participation. This award does not appear to support small business goals.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair and reasonable pricing. Further review of the justification for sole-sourcing is recommended.

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 competition.
Potential for inflated pricing.
Limited transparency in cost justification.
Risk of supply chain dependency.
No apparent small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF:: ACAT III BIG SAFARI RJ-8 MITD/PDM

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 $45.1 million.

What is the period of performance?

Start: 2017-03-23. End: 2019-07-31.

What was the specific justification for awarding this contract on a sole-source basis, and was a thorough market research conducted to ensure no other capable sources existed?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications require demonstrating that only one responsible source can provide the required supplies or services. A thorough market research is a prerequisite to ensure no other capable sources exist, and its absence or inadequacy would be a significant oversight.

How does the unit cost of these aircraft parts compare to similar components procured through competitive means by the DoD or other government agencies?

Without specific unit cost data and benchmarks for comparable parts procured competitively, a direct comparison is not possible. However, given the sole-source nature of this award, it is reasonable to suspect that the unit costs may be higher than if the contract had been subject to open competition, which typically drives prices down.

What is the long-term strategic impact of relying on a single supplier for these critical aircraft parts, particularly concerning potential supply chain disruptions or price escalations?

Sole-source reliance creates significant strategic risks. It makes the Department of Defense vulnerable to supply chain disruptions if the sole supplier faces production issues or goes out of business. Furthermore, without competition, the supplier has considerable leverage to increase prices over time, potentially leading to escalating costs for taxpayers and impacting long-term budget predictability.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $45,830,484

Exercised Options: $45,830,484

Current Obligation: $45,125,352

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $128,258

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