DoD awards $41.9M for EFIS upgrades to L3Harris, raising questions on competition and value
Contract Overview
Contract Amount: $41,925,229 ($41.9M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2016-11-18
End Date: 2021-04-30
Contract Duration: 1,624 days
Daily Burn Rate: $25.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ACAT III BIG SAFARI UKRC135 EFIS
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $41.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI UKRC135 EFIS Key points: 1. Significant contract value for aircraft electronic systems. 2. Sole-source award to L3Harris limits competitive pricing. 3. Potential for cost overruns with Cost Plus Fixed Fee contract. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The $41.9M award for EFIS upgrades lacks clear benchmarks for comparison due to its sole-source nature. The Cost Plus Fixed Fee structure introduces risk of costs exceeding initial estimates without a strong competitive pressure to optimize pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to L3Harris Technologies. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft electronic systems.
Public Impact
Impacts Air Force readiness and modernization efforts. Raises concerns about fair pricing for defense contractors. Highlights potential for non-competitive awards in specialized sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration
Positive Signals
- Awarded to established defense contractor
- Addresses specific military need
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is critical for maintaining military aviation capabilities, but often involves complex, specialized systems where competition can be challenging.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, L3Harris, is handling the entire scope of work, potentially missing opportunities to leverage smaller, specialized businesses within the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants further scrutiny from oversight bodies to ensure the pricing is fair and reasonable. A review of the justification for not competing the award would be beneficial.
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
- Cost Plus Fixed Fee contract type
- No small business involvement
- Potential for cost overruns
- Limited transparency on pricing
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 $41.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI UKRC135 EFIS
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 $41.9 million.
What is the period of performance?
Start: 2016-11-18. End: 2021-04-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reasoning, but it often relates to the specialized nature of advanced avionics systems like EFIS.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs on this contract?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee provides some incentive for efficiency, the primary cost control relies on the government's ability to audit costs and negotiate the fee. This structure can lead to higher overall costs if not managed diligently, as the contractor is less exposed to cost overruns than in fixed-price contracts.
What is the long-term strategic value of these EFIS upgrades for the Air Force's fleet?
The EFIS (Electronic Flight Instrument System) upgrades are crucial for modernizing aging aircraft, enhancing pilot situational awareness, improving navigation accuracy, and ensuring compliance with future air traffic control mandates. These upgrades contribute to the overall safety, efficiency, and operational effectiveness of the affected aircraft platforms within the Air Force inventory.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $41,925,229
Exercised Options: $41,925,229
Current Obligation: $41,925,229
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $17,600,403
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
Start Date: 2016-11-18
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2025-07-21
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