DoD's $59.8M contract for aircraft parts awarded to L3Harris Technologies, with limited competition

Contract Overview

Contract Amount: $59,783,245 ($59.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-12-29

End Date: 2025-12-31

Contract Duration: 2,924 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF ACAT III BIG SAFARI

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $59.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI Key points: 1. Contract awarded under a limited competition framework, potentially impacting price discovery. 2. The contract duration of approximately 8 years suggests a long-term need for these aircraft parts. 3. Fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The award is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a specialized sector. 5. The contract's value of $59.8 million places it in the mid-tier range for defense procurements. 6. No indication of small business set-aside or subcontracting requirements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the aircraft parts and their criticality. The fixed-price nature is a positive indicator for cost control. However, the limited competition could lead to less favorable pricing compared to a fully competed scenario. Further analysis would require understanding the market for these specific parts and comparing L3Harris's pricing to industry standards for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, falling under a 'limited' competition category. This suggests that only a select number of bidders were considered, or that the procurement was justified under specific circumstances that restricted broader participation. The limited nature of the competition means that the government may not have received the full benefit of a wide range of offers, potentially affecting the final price and the innovation brought forth.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as the potential for competitive pressure to drive down prices is reduced. This may mean that taxpayer funds are not being utilized as efficiently as they could be in a more open bidding environment.

Public Impact

The primary beneficiaries are likely the Department of Defense, ensuring the continued operation and maintenance of its aircraft fleet. The services delivered involve the manufacturing and supply of critical aircraft parts and auxiliary equipment. The geographic impact is primarily within Texas, where L3Harris Technologies is located, but the ultimate impact is on DoD operations nationwide. Workforce implications include employment opportunities within L3Harris Technologies and its supply chain, particularly in specialized manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices and reduced innovation.
Lack of transparency in the selection process could obscure potential inefficiencies.
Long contract duration might not adapt well to rapidly evolving technological needs.
No explicit small business involvement raises concerns about broader economic impact.

Positive Signals

Fixed-price contract type shifts cost risk to the contractor.
Award to an established company like L3Harris suggests a degree of reliability.
Contract ensures continued availability of essential aircraft components for the DoD.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the aerospace and defense industry. This contract fits within the broader defense procurement landscape, where specialized manufacturing capabilities are essential for maintaining military readiness. The market for such parts is often characterized by high barriers to entry due to technical expertise and regulatory requirements. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar specialized aircraft components.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific procurement are likely limited. The absence of small business involvement could mean a missed opportunity to foster growth and innovation within the small business defense contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and oversight mechanisms, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price contract type, which places cost responsibility on the contractor. Transparency assessment would depend on the public availability of contract details and performance reports, which may be limited for classified or sensitive defense procurements.

Related Government Programs

DoD Aircraft Maintenance and Repair Contracts
Defense Aviation Component Manufacturing
Aerospace Parts Supply Chain Management
Military Aircraft Sustainment Programs

Risk Flags

Limited Competition
Long Contract Duration
Lack of Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::CT::IGF 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $59.8 million.

What is the period of performance?

Start: 2017-12-29. End: 2025-12-31.

What is the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured under this contract, and what is their criticality to DoD operations?

The provided data does not specify the exact nature or criticality of the 'Other Aircraft Parts and Auxiliary Equipment'. This category is broad and can encompass a wide range of components, from structural elements to specialized electronic or mechanical systems. Understanding the specific parts is crucial for assessing their impact on aircraft performance, safety, and operational readiness. Without this detail, it's difficult to fully gauge the strategic importance of this $59.8 million contract beyond its general contribution to aircraft sustainment. Further investigation into the contract's statement of work or associated documentation would be necessary to identify the precise components and their roles within the DoD's aviation fleet.

How does the pricing of this contract compare to similar procurements for aircraft parts, considering the limited competition?

Direct price comparison is difficult without knowing the specific parts and their market rates. However, the 'limited' competition suggests that the government may not have achieved the most competitive pricing possible. Typically, a wider competition among multiple bidders drives prices down through market forces. L3Harris Technologies is a large defense contractor, and their pricing is often based on established cost structures and profit margins. To assess value for money, one would need to benchmark the unit prices of these parts against industry averages for comparable components, adjusted for factors like volume, complexity, and any unique specifications required by the DoD. The absence of a fully open competition raises a flag for potential overpricing, necessitating a thorough review of the contractor's cost proposals and market research conducted prior to award.

What are the potential risks associated with a long-term (approx. 8-year) contract for aircraft parts awarded under limited competition?

A long-term contract for aircraft parts awarded under limited competition presents several risks. Firstly, the limited competition aspect means that the government might be locked into a potentially suboptimal price for an extended period, missing out on potential cost savings that could arise from future competitive bidding or market shifts. Secondly, the long duration (2017-2025) increases the risk of technological obsolescence; the parts procured might become outdated or less efficient as aviation technology advances. Thirdly, contractor performance over such a long period can vary; there's a risk of declining quality or responsiveness if oversight is not consistently rigorous. Finally, the reliance on a single or limited set of suppliers for critical components can create supply chain vulnerabilities, especially if the contractor faces production issues or financial instability.

What is L3Harris Technologies' track record with similar DoD contracts, particularly in aircraft parts manufacturing?

L3Harris Technologies is a major defense contractor with a significant history of supplying various components and systems to the Department of Defense, including those related to aviation. While specific details on their track record for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under similar limited competition contracts are not provided in the summary data, the company generally has extensive experience in aerospace and defense manufacturing. Their performance on past contracts, including on-time delivery, quality control, and adherence to specifications, would be a key factor in assessing the reliability of this current award. A review of their contract history, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their capabilities and reliability for this specific procurement.

How does this contract's value and duration compare to historical spending patterns for aircraft parts within the Department of Defense?

The $59.8 million value over approximately 8 years places this contract within a typical range for sustainment and component supply for military aircraft fleets. The DoD spends billions annually on aircraft maintenance, repair, and overhaul (MRO), which includes the procurement of parts. Contracts of this magnitude are common for ensuring the availability of critical components for various aircraft platforms. Historical spending patterns show a consistent need for such procurements to maintain readiness. The duration reflects the long lifecycle of military aircraft. While this specific contract's value is substantial, it represents a fraction of the overall DoD aviation budget, indicating a consistent but not unusually large expenditure for its category and duration.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $59,783,245

Exercised Options: $59,783,245

Current Obligation: $59,783,245

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $4,525,632

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