DoD's $757M ACAT III BIG SAFARI contract awarded to L3Harris without competition

Contract Overview

Contract Amount: $75,753,345 ($75.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-12-15

End Date: 2022-06-30

Contract Duration: 1,658 days

Daily Burn Rate: $45.7K/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 $75.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI Key points: 1. Significant contract value of $757.5 million. 2. Awarded to a single large business, L3Harris Technologies. 3. Lack of competition raises concerns about potential overpricing and reduced innovation. 4. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract's value of $757.5 million is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts. The awarded amount may not reflect the best value achievable through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for the government compared to a competitive environment.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium for the goods or services received.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation and less advanced solutions without market pressure. Limited visibility into the justification for a sole-source award for such a large sum.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Large contract value
No small business participation indicated

Positive Signals

Contract awarded to a known entity (L3Harris)

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely, but large sole-source awards warrant scrutiny to ensure fair pricing and value.

Small Business Impact

The data indicates no small business participation in this contract. This represents a missed opportunity to support small businesses and leverage their innovative capabilities.

Oversight & Accountability

The sole-source nature of this large contract necessitates robust oversight to ensure the government is receiving fair value and that the justification for non-competition is sound.

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 for a large contract value.
Lack of small business participation.
Potential for inflated pricing due to no competition.
Limited transparency on justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.8 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 $75.8 million.

What is the period of performance?

Start: 2017-12-15. End: 2022-06-30.

What was the specific justification for awarding this $757.5 million contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award, especially for a contract of this magnitude, is critical. Agencies must demonstrate that only one responsible source can provide the required supplies or services. Without competition, price reasonableness is typically assessed through cost analysis, comparison to historical prices, or market research. Robust oversight is essential to verify the validity of the sole-source justification and the thoroughness of the price negotiation.

What are the potential risks associated with awarding a $757.5 million contract without competition, particularly concerning technological advancement and long-term cost-effectiveness?

Awarding a large contract without competition poses several risks. It can stifle innovation as the contractor faces no market pressure to develop superior or more cost-effective solutions. This can lead to higher long-term costs for the government if the initial pricing was not optimized. Furthermore, the absence of competitive proposals means the government may not be exposed to the latest technological advancements available in the market.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector typically handle competitive bidding for contracts of this size, and how does this sole-source award compare?

In the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, contracts of this size are typically competed to leverage the diverse capabilities and drive down costs. Competitive bidding allows for the evaluation of various technical approaches and pricing structures. This sole-source award deviates from the norm for large contracts in this sector, suggesting a specific, potentially unique, requirement or a failure to adequately explore competitive options.

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: $85,230,855

Exercised Options: $75,753,345

Current Obligation: $75,753,345

Actual Outlays: $2,280,179

Subaward Activity

Number of Subawards: 104

Total Subaward Amount: $58,472,333

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline