DoD's $58M BIG SAFARI Contract Awarded to L3Harris Raises Questions on Competition and Value
Contract Overview
Contract Amount: $58,055,320 ($58.1M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2017-08-21
End Date: 2019-12-05
Contract Duration: 836 days
Daily Burn Rate: $69.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ACAT III BIG SAFARI
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $58.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI Key points: 1. Significant spending on aircraft parts without clear justification for limited competition. 2. L3Harris Technologies, a major defense contractor, secured the award. 3. Potential for inflated costs due to sole-source nature. 4. The 'Other Aircraft Parts' sector often has competitive alternatives.
Value Assessment
Rating: questionable
The contract's Cost No Fee (CNF) structure with a $58M ceiling and zero obligated funds raises concerns about cost control and value. The lack of a defined ceiling price makes it difficult to assess if the final cost will be reasonable compared to similar aircraft parts contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This significantly restricts price discovery and may lead to higher costs for taxpayers as L3Harris was the sole provider considered.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a fully competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid for aircraft parts due to the absence of competitive bidding. Lack of transparency in the procurement process hinders public trust. The Department of Defense's reliance on limited competition for significant contracts warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of cost control mechanisms
- Potential for overpricing
Positive Signals
- Contract awarded to a known defense entity
- Specific program support (BIG SAFARI)
Sector Analysis
This contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' While specific parts can be specialized, the broader sector often presents opportunities for competitive sourcing, making the limited competition approach for this $58M award notable.
Small Business Impact
The contract was awarded to L3Harris Technologies, a large corporation, and there is no indication that small businesses were involved in this specific procurement. This represents a missed opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in oversight regarding the justification for avoiding full and open competition. Further review is needed to ensure accountability and adherence to procurement regulations.
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
- Unclear cost controls
- Potential for price inflation
- Limited transparency
- Missed small business opportunities
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 $58.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI
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 $58.1 million.
What is the period of performance?
Start: 2017-08-21. End: 2019-12-05.
What was the specific justification for not competing this $58M contract, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED.' A thorough review would require access to the contract file to understand the specific justification, such as a sole-source requirement or urgent need. Without this, it's impossible to determine if alternatives were adequately explored or if the decision was fully warranted, potentially impacting overall value for the taxpayer.
How does the Cost No Fee (CNF) structure with zero obligated funds ensure cost-effectiveness and mitigate risk for the government?
The CNF structure, especially with zero initial funds obligated, presents a unique risk profile. While it allows flexibility, it places the onus on the contractor to manage costs effectively without a defined government ceiling. This can lead to uncertainty in final expenditure and makes it challenging to benchmark against similar contracts, potentially increasing the government's financial exposure if costs escalate significantly.
What is the strategic importance of ACAT III BIG SAFARI, and how does this contract contribute to its effectiveness?
ACAT III typically refers to a program with a total acquisition cost between $20 million and $480 million, indicating significant strategic importance within the Department of Defense. The BIG SAFARI program likely supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities. This contract, for aircraft parts, is essential for maintaining and operating these vital assets, directly impacting mission effectiveness.
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: 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: $58,094,656
Exercised Options: $58,094,656
Current Obligation: $58,055,320
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $26,203,505
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: 2017-08-21
Current End Date: 2019-12-05
Potential End Date: 2019-12-05 00:00:00
Last Modified: 2024-09-18
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