DoD's $556M ACAT III BIG SAFARI contract awarded to L3Harris for aircraft parts

Contract Overview

Contract Amount: $55,631,864 ($55.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-12-21

End Date: 2021-09-30

Contract Duration: 1,379 days

Daily Burn Rate: $40.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $55.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI Key points: 1. Significant investment in aircraft parts manufacturing. 2. L3Harris Technologies is a major defense contractor. 3. Contract awarded without competition raises questions about price discovery. 4. Spending spans multiple years, impacting long-term budget allocation.

Value Assessment

Rating: questionable

The total award of $556,318,64 is for a single delivery order. Without more granular data on the specific items procured and their quantities, a direct comparison to similar contracts is difficult. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Impacts the readiness and operational capabilities of Air Force aircraft. Supports jobs within the aerospace and defense manufacturing sector. Potential for increased costs to taxpayers due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of transparency in pricing
Long contract duration

Positive Signals

Supports critical defense needs
Awarded to established defense contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation fleets. Benchmarks for this specific sub-sector are difficult to ascertain without more detailed itemization, but overall defense spending on aircraft components is substantial.

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 sole-source nature of this award warrants further oversight to ensure fair pricing and value for taxpayer dollars. Accountability for the justification of the non-competitive award 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 limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
Lack of transparency regarding specific components and their pricing.
Missed opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 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 $55.6 million.

What is the period of performance?

Start: 2017-12-21. End: 2021-09-30.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without access to the specific contract file, it's impossible to detail the exact justification. However, for a contract of this magnitude, the agency should have conducted a thorough market analysis and price reasonableness assessment to mitigate the risks associated with non-competitive procurement.

How does the unit cost of the components procured under this contract compare to industry benchmarks for similar parts?

A direct comparison of unit costs is challenging without knowing the specific parts, quantities, and their associated costs within the $556 million award. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category is broad. However, the sole-source nature of the award raises concerns that the pricing may not be as competitive as it would be in a fully open market.

What is the expected impact of this contract on the operational readiness and maintenance costs of the Air Force's aircraft fleet?

This contract is intended to provide necessary parts and auxiliary equipment, directly supporting the operational readiness of the Air Force's aircraft. The long duration suggests a sustained need for these components. The impact on maintenance costs is less clear; while ensuring parts availability is positive, the lack of competition could lead to higher per-unit costs, potentially increasing overall maintenance expenditures.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

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: $55,631,864

Exercised Options: $55,631,864

Current Obligation: $55,631,864

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $1,363,354

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline