DoD's $90.8M Big Safari Peregrine System Contract Awarded to L3Harris

Contract Overview

Contract Amount: $90,846,011 ($90.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-11-03

End Date: 2024-08-31

Contract Duration: 2,493 days

Daily Burn Rate: $36.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF: ACAT III, BIG SAFARI PEREGRINE MISSION SYSTEM UCA

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $90.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF: ACAT III, BIG SAFARI PEREGRINE MISSION SYSTEM UCA Key points: 1. The contract is for the Peregrine Mission System, an ACAT III program. 2. L3Harris Technologies Integrated Systems L.P. is the sole awardee. 3. The contract spans from November 2017 to August 2024. 4. The North American Industry Classification System (NAICS) code is 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing).

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $90.8M price reflects 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 limits price discovery and potentially increases costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a significant contract value raises concerns about potential overspending of taxpayer funds.

Public Impact

This contract supports advanced aerospace systems for the Department of Defense. The program's specific details are likely classified due to its nature. Taxpayers are funding advanced technology development and procurement for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration increases exposure to potential cost growth.

Positive Signals

Supports critical national security mission.
Awardee is a known defense contractor.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this sector is driven by national security needs and technological advancements.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, not a small business. There is no indication that small businesses were subcontracted for this specific award.

Oversight & Accountability

The ACAT III designation suggests a certain level of program oversight, but the sole-source nature of this award warrants close monitoring by the Department of Defense's Inspector General to ensure cost efficiency and program effectiveness.

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
Cost Plus Fixed Fee contract type
Lack of transparency on specific system capabilities
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF: ACAT III, BIG SAFARI PEREGRINE MISSION SYSTEM UCA

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 $90.8 million.

What is the period of performance?

Start: 2017-11-03. End: 2024-08-31.

What specific capabilities does the Big Safari Peregrine Mission System provide, and how do these capabilities justify the sole-source award and cost?

The specific capabilities of the Big Safari Peregrine Mission System are likely classified, relating to specialized intelligence, surveillance, and reconnaissance (ISR) or electronic warfare functions for the Air Force. Justification for a sole-source award typically rests on unique technological expertise, proprietary systems, or urgent national security needs that cannot be met by other vendors within the required timeframe. The cost is assessed against program milestones and fixed fee components, but without competitive benchmarks, its value proposition remains opaque.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for a defense system like Peregrine?

The primary risks include potential cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee, which can incentivize less cost-conscious behavior. Lack of competition means taxpayers may not receive the best possible price. There's also a risk of vendor lock-in and reduced innovation if alternative solutions are not explored. Oversight is critical to mitigate these risks and ensure the program delivers intended capabilities within reasonable financial parameters.

How effective is the Department of Defense in overseeing sole-source contracts to ensure taxpayer value and mission success?

The effectiveness of DoD oversight varies. While robust processes exist for ACAT programs, sole-source awards inherently reduce market-driven accountability. The DoD relies on program managers, contracting officers, and the Inspector General to scrutinize costs, performance, and adherence to contract terms. However, the complexity and classified nature of some defense systems can challenge even diligent oversight, making transparency and strong internal controls paramount for ensuring taxpayer value and mission success.

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

Offers Received: 1

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: $91,436,842

Exercised Options: $91,436,842

Current Obligation: $90,846,011

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $38,650,075

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