DoD's $26.3M Contract for Aircraft Parts Awarded to L3Harris Without Competition

Contract Overview

Contract Amount: $26,263,367 ($26.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2016-12-09

End Date: 2018-01-13

Contract Duration: 400 days

Daily Burn Rate: $65.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF ACAT III BIG SAFARI FY17 WRANG CLS

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI FY17 WRANG CLS Key points: 1. Significant spending on aircraft parts manufacturing. 2. L3Harris Technologies is the sole awardee. 3. Contract awarded without full and open competition. 4. Potential for higher costs due to lack of competition.

Value Assessment

Rating: questionable

The contract's value of $26.3 million is substantial for aircraft parts. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to less favorable pricing for the government.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may have overpaid for these aircraft parts.

Public Impact

Impacts the readiness and operational capability of Air Force aircraft. Affects the supply chain for specialized aircraft components. Raises questions about the justification for sole-source procurement in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Cost Plus Fixed Fee contract type

Positive Signals

Awarded to a known entity (L3Harris)
Supports Department of Defense needs

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation assets. Benchmarks are difficult to establish without competitive data.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The justification for not competing this award requires scrutiny.

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
Sole-source award
Cost Plus Fixed Fee contract type
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF ACAT III BIG SAFARI FY17 WRANG CLS

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 $26.3 million.

What is the period of performance?

Start: 2016-12-09. End: 2018-01-13.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative procurement methods considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further documentation, it's impossible to determine the specific rationale. However, the absence of competition inherently limits the government's ability to secure the best possible price and terms, potentially impacting overall value for taxpayers.

How does the Cost Plus Fixed Fee (CPFF) contract structure potentially impact the final cost and contractor's incentive for efficiency?

A CPFF contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility with evolving project needs, it can reduce the contractor's incentive to control costs, as the fee remains constant regardless of actual expenses. This structure, especially without competition, may lead to higher overall expenditures than a fixed-price contract.

What is the potential impact on future procurements if sole-source awards become a pattern for this type of aircraft part?

If sole-source awards become a pattern for these aircraft parts, it could stifle innovation and competition within the industry. It may also lead to sustained higher prices for the government and limit the participation of other capable manufacturers, including small businesses. This could ultimately affect the long-term cost-effectiveness and availability of critical components.

Industry Classification

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

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

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: 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: $26,263,367

Exercised Options: $26,263,367

Current Obligation: $26,263,367

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $5,248,527

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline