DoD awards $39.5M for BIG SAFARI EPF Kits to L3Harris, raising competition concerns
Contract Overview
Contract Amount: $39,509,522 ($39.5M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2016-12-20
End Date: 2020-04-30
Contract Duration: 1,227 days
Daily Burn Rate: $32.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT III BIG SAFARI RJ BL12 EPF KITS
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $39.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI RJ BL12 EPF KITS Key points: 1. Significant award value of $39.5M for specialized aircraft parts. 2. Sole-source award to L3Harris Technologies raises questions about price discovery. 3. Long contract duration of 1227 days suggests potential for cost overruns. 4. Lack of competition is a primary risk factor for taxpayer value.
Value Assessment
Rating: questionable
The award value of $39.5M for specialized aircraft kits lacks a clear benchmark due to the sole-source nature. Without competitive bids, it's difficult to assess if the price is fair and reasonable compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these specialized kits, as there was no market pressure to drive down prices.
Public Impact
Specialized military equipment procurement without competition. Potential for inflated costs due to sole-source award. Impact on readiness and operational capability if kits are critical.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Specific need for specialized equipment
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this area is often characterized by high R&D costs and specialized production, but competitive bidding is crucial for cost control.
Small Business Impact
The awardee is a large corporation, and there is no indication that small businesses were involved in this sole-source procurement. Opportunities for small business participation appear limited.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value. 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
- Lack of competition
- Potential for inflated pricing
- Limited small business participation
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI RJ BL12 EPF KITS
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 $39.5 million.
What is the period of performance?
Start: 2016-12-20. End: 2020-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without access to the specific contract file, it's impossible to detail the exact justification. However, the absence of competition means that the government must rigorously document why other sources were not viable to ensure fair pricing and avoid unnecessary expenditure.
How does the $39.5M award compare to similar procurements for aircraft parts, and what is the potential cost impact of the lack of competition?
Direct comparison is difficult due to the specialized nature of 'BIG SAFARI RJ BL12 EPF KITS' and the sole-source award. However, a lack of competition generally leads to higher prices than if multiple bidders were present. The potential cost impact could be significant, as the government may have paid a premium without the downward pressure that competitive bidding provides. Benchmarking against less specialized, but related, aircraft parts might offer a rough estimate, but a true assessment requires internal cost analysis.
What is the long-term strategic value and effectiveness of these EPF kits, and how does the procurement method affect their availability and performance?
The long-term strategic value and effectiveness depend on the specific function of the 'EPF Kits' within the BIG SAFARI program. If these kits are critical for aircraft operational readiness, the sole-source procurement method, while potentially costly, might have been deemed necessary to ensure timely delivery of essential components. However, the lack of competition could also impact future innovation and the availability of upgrades or replacements if the sole provider faces production issues or decides to discontinue the product.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3 Technologies, Inc. (UEI: 008898884)
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: $39,509,522
Exercised Options: $39,509,522
Current Obligation: $39,509,522
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $811,374
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862016G3027
IDV Type: BOA
Timeline
Start Date: 2016-12-20
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2022-01-14
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