DoD's $24.3M Big Safari Logistics Support Contract Awarded to L3Harris Without Competition

Contract Overview

Contract Amount: $24,308,764 ($24.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2016-11-14

End Date: 2019-03-31

Contract Duration: 867 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::CT::IGF ACAT III BIG SAFARI LOGISTICS SUPPORT

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI LOGISTICS SUPPORT Key points: 1. Significant contract value of $24.3 million for specialized logistics support. 2. Awarded to L3Harris Technologies, a major defense contractor. 3. Lack of competition raises questions about price discovery and potential overspending. 4. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract's 'COST NO FEE' pricing structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competing bids, it's hard to determine if the $24.3 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was 'NOT COMPETED,' indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The absence of competition for a $24.3 million contract means taxpayers may have paid a premium, as the government did not leverage market forces to secure the best possible price.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The specific nature of 'Big Safari' logistics support suggests a critical, potentially unique capability. Transparency in the justification for a sole-source award is crucial for public trust. Future contracts of this nature should explore competitive strategies where feasible.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus pricing structure
Lack of transparency in justification

Positive Signals

Awarded to a known defense contractor
Supports critical 'Big Safari' program

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically related to specialized aircraft support. Spending benchmarks in this niche area are difficult to establish without comparable sole-source contracts, but competitive awards for similar logistics services typically aim for cost efficiencies.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, not a small business. There is no indication that small businesses were involved as subcontractors on this specific contract, limiting opportunities for smaller enterprises in this procurement.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for a sole-source award was robust and that the pricing was appropriately scrutinized. Accountability for ensuring fair value in non-competitive procurements is essential.

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 competitive pricing.
Cost-plus structure without a fee can obscure true value.
Potential for overpayment due to lack of competition.
Limited transparency on justification for sole-sourcing.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF ACAT III BIG SAFARI LOGISTICS SUPPORT

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 $24.3 million.

What is the period of performance?

Start: 2016-11-14. End: 2019-03-31.

What specific justification was provided for awarding this $24.3 million contract on a sole-source basis, and how was the 'COST NO FEE' pricing validated to ensure value for money?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For a 'COST NO FEE' contract, the government agrees to reimburse the contractor for allowable costs but does not pay a fee. Validation would involve rigorous auditing of costs and ensuring they align with contract terms and fair pricing principles, though this is more challenging without competitive benchmarks.

Given the lack of competition, what mechanisms were in place to mitigate the risk of inflated costs or ensure the contractor's performance met the required standards for 'BIG SAFARI LOGISTICS SUPPORT'

Mitigation strategies in sole-source, cost-reimbursement contracts often include stringent cost accounting standards, detailed performance metrics, and robust government oversight. The 'NO FEE' aspect inherently reduces the contractor's profit motive, potentially aligning incentives towards cost control. However, the absence of a competitive baseline makes assessing 'inflated costs' inherently more difficult and relies heavily on the government's auditing and negotiation capabilities.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification for this logistics support contract reflect its actual function and potential impact on the broader defense sup

Classifying logistics support under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' might seem unusual, suggesting the support is intrinsically tied to specific parts or equipment manufacturing processes. This could indicate a highly specialized, integrated support role critical for the operational readiness of unique aircraft systems within the 'Big Safari' program. Its impact on the supply chain would be significant if it ensures the availability and maintenance of key components for advanced defense platforms.

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: COST NO FEE (S)

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: $24,313,321

Exercised Options: $24,313,321

Current Obligation: $24,308,764

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $69,556

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