DoD's $34.5M Big Safari sustainment contract awarded to L3Harris without competition

Contract Overview

Contract Amount: $34,492,660 ($34.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2016-12-19

End Date: 2018-01-31

Contract Duration: 408 days

Daily Burn Rate: $84.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF ACAT III BIG SAFARI LIFE CYCLE LAB SUSTAINMENT

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::OT::IGF ACAT III BIG SAFARI LIFE CYCLE LAB SUSTAINMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential overpayment. 2. Limited competition suggests potential for higher costs compared to a more open bidding process. 3. The contract's duration and fixed-price nature may offer cost predictability but limit flexibility. 4. Performance context is limited due to the lack of competitive benchmarking. 5. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 6. The award to a single vendor warrants scrutiny of the justification for sole-source procurement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific, potentially niche, nature of 'Big Safari' sustainment. Without competitive bids, it's difficult to assess if the $34.5 million represents a fair market price. Comparisons to similar sustainment contracts for specialized aerospace systems would be necessary to provide a more robust value assessment. The fixed-price structure offers some cost certainty, but the absence of competition means taxpayers may not have benefited from the most economical pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. The specific reasons for this sole-source award are not detailed in the provided data, but typically involve unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. The lack of competition means there were no other bidders to compare against, limiting the government's ability to leverage market forces for the best possible price.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. This can result in less efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, through the sustainment of critical 'Big Safari' program assets. The services delivered involve the maintenance and support of specialized aircraft or related systems, ensuring operational readiness. The geographic impact is primarily within Texas, where the contractor L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include the employment of skilled technicians and engineers at L3Harris to perform sustainment activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Limited data available to assess the contractor's performance in a competitive context.
The specific nature of 'Big Safari' sustainment may involve unique risks not fully detailed.

Positive Signals

L3Harris Technologies is an established defense contractor with significant experience.
Fixed-price contract provides cost certainty for the government.
The contract supports critical defense assets, contributing to national security.
Sustainment contracts are crucial for maintaining the longevity and effectiveness of complex systems.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a segment of the broader aerospace and defense industry. This sector is characterized by specialized manufacturing, high technological requirements, and significant government procurement. The market size for aerospace sustainment is substantial, driven by the need to maintain aging fleets and complex weapon systems. This specific contract likely supports a niche capability within the Air Force's 'Big Safari' program, which focuses on rapid development and modification of special mission aircraft.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, L3Harris Technologies, is a large business, and any subcontracting would be at their discretion, not mandated by a set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is limited by the sole-source nature of the award; however, contract modifications and performance reports, if publicly available, would offer further insights into accountability.

Related Government Programs

Air Force Sustainment Programs
Special Mission Aircraft Programs
Aerospace Manufacturing and Support Contracts
Defense Logistics Agency (DLA) Support Contracts

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding specific sustainment requirements and performance metrics.
Dependency on a single contractor for critical defense assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::OT::IGF ACAT III BIG SAFARI LIFE CYCLE LAB SUSTAINMENT

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 $34.5 million.

What is the period of performance?

Start: 2016-12-19. End: 2018-01-31.

What is the specific nature of the 'Big Safari' program and the systems being sustained under this contract?

The 'Big Safari' program is an Air Force initiative focused on the rapid acquisition, modification, and sustainment of special mission aircraft. These aircraft are often modified commercial platforms or unique platforms designed for intelligence, surveillance, reconnaissance (ISR), electronic warfare, or other specialized roles. The specific systems being sustained under this contract are not detailed in the provided data but would relate to the unique operational capabilities of the 'Big Safari' assets. This could include avionics, sensors, communication systems, or airframe modifications critical to their mission effectiveness. The sustainment ensures these specialized platforms remain operational and technologically relevant.

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

The provided data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements in defense include: unique technical capabilities possessed by only one vendor, proprietary technology requiring the original developer, urgent and compelling needs where only one source can meet the deadline, or if the contract is a follow-on to a previous competitive award where only one vendor can provide compatible systems. Without further documentation, the precise rationale remains unknown, but it implies a determination that no other responsible source could meet the government's requirements.

How does the fixed-price contract type impact cost control and risk allocation?

A Firm Fixed Price (FFP) contract, as indicated (pt: FIRM FIXED PRICE), establishes a ceiling price that the contractor must not exceed. This contract type is generally preferred by the government for its cost control predictability, as the contractor assumes most of the risk for cost overruns. For the contractor, it incentivizes efficiency and cost management to maximize profit. However, in a sole-source scenario, the absence of competition means the initial price might be set without the downward pressure that multiple bids would provide. While the FFP structure aims to protect the government from cost increases, the initial negotiated price is critical, and without competition, ensuring that initial price is truly fair and reasonable is more challenging.

What is the historical spending pattern for 'Big Safari' sustainment or similar specialized aircraft support within the Department of Defense?

Historical spending on 'Big Safari' sustainment and similar specialized aircraft support within the Department of Defense is substantial and often characterized by unique, high-value contracts. These programs frequently involve complex modifications and specialized equipment, leading to higher per-unit costs compared to standard aircraft. Spending patterns can fluctuate based on modernization efforts, operational tempo, and the lifecycle of specific platforms. Analyzing past contracts for 'Big Safari' or comparable ISR/special mission aircraft programs would reveal trends in contract values, durations, and the prevalence of sole-source versus competitive awards. Such analysis is crucial for understanding the long-term investment in these critical capabilities and identifying potential areas for cost optimization.

What are the potential risks associated with relying on a single contractor for critical sustainment services?

Relying on a single contractor for critical sustainment services, as is the case with this sole-source award, introduces several risks. Firstly, there is a risk of vendor lock-in, where the government becomes heavily dependent on the incumbent contractor, making it difficult and costly to switch providers even if performance or pricing becomes unsatisfactory. Secondly, without competitive pressure, the contractor may have less incentive to innovate or improve efficiency, potentially leading to stagnant service quality or escalating costs over time. Thirdly, the contractor's financial stability or operational capacity becomes a critical factor; any disruption to the sole provider could have immediate and severe impacts on the operational readiness of the supported systems. Finally, the lack of competition can obscure potential performance issues or inefficiencies that might be revealed in a competitive environment.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $34,492,660

Exercised Options: $34,492,660

Current Obligation: $34,492,660

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,287,291

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline