DoD Awards $28.2M for Aircraft Parts to L3Harris Technologies, Lacking Competition

Contract Overview

Contract Amount: $28,223,550 ($28.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2018-11-17

Contract Duration: 412 days

Daily Burn Rate: $68.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::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 $28.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::OT::IGF ACAT III BIG SAFARI Key points: 1. Significant award value of $28.2M for aircraft parts. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Potential for overpayment due to lack of competitive bidding. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: questionable

The award of $28.2M for aircraft parts lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if the price paid represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, was solicited. This significantly limits price discovery and potentially leads to higher costs for the government.

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

Public Impact

Taxpayers may be overpaying for essential aircraft components. Limited visibility into the justification for sole-source procurement. Potential impact on the broader defense industrial base due to concentrated awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Awarded to established defense contractor

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military readiness, but competitive procurement is essential to ensure cost-effectiveness.

Small Business Impact

The data indicates no small business participation in this contract. Sole-source awards often bypass opportunities for small businesses to compete and demonstrate their capabilities.

Oversight & Accountability

The sole-source nature of this award warrants further review by oversight bodies to ensure the justification was sound and that competitive opportunities were not overlooked.

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 lacks justification
No competitive bidding process
Potential for inflated pricing
No small business participation
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::OT::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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-11-17.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of adequate competition. Without further details on this specific contract, it's impossible to determine the exact reasoning. However, the absence of competition raises questions about whether alternative vendors could have met the requirements.

How does the $28.2M price compare to similar sole-source aircraft parts contracts?

Direct comparison is challenging without knowing the specific parts and quantities. However, sole-source contracts are inherently at higher risk of being overpriced compared to competitively awarded ones. A thorough audit would be needed to assess if this price is reasonable in the absence of competition.

What is the long-term risk associated with awarding significant contracts like this without competition?

The long-term risk includes fostering a lack of innovation and efficiency within the supply chain, as contractors may face less pressure to reduce costs or improve performance. It can also create dependency on a single supplier, potentially leading to supply chain vulnerabilities and higher prices over time.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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: $28,223,550

Exercised Options: $28,223,550

Current Obligation: $28,223,550

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline