Air Force awards $31.4M for aircraft parts, with L3Harris Technologies as sole source

Contract Overview

Contract Amount: $31,358,360 ($31.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-12-28

End Date: 2019-01-31

Contract Duration: 399 days

Daily Burn Rate: $78.6K/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 $31.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::OT::IGF ACAT III BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Limited competition may lead to higher costs for taxpayers. 3. Contract duration of 399 days suggests a need for ongoing support. 4. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a critical sector for defense. 5. Texas is the place of performance, potentially impacting the local economy and workforce. 6. The firm fixed-price contract type aims to control costs, but the lack of competition is a concern.

Value Assessment

Rating: questionable

The total award of $31.4 million for aircraft parts requires careful benchmarking against similar sole-source contracts. Without competitive bids, it is difficult to ascertain if the pricing reflects fair market value. The lack of transparency in the bidding process makes it challenging to assess value for money. Further analysis would be needed to compare the unit costs or overall value to industry standards for comparable parts and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This can lead to a less efficient use of public funds compared to contracts awarded through full and open competition.

Public Impact

The primary beneficiary is the Department of the Air Force, which receives essential aircraft parts. The contract supports the maintenance and operational readiness of Air Force aircraft. Performance is located in Texas, potentially creating or sustaining jobs in the state. The services delivered are critical for the ongoing operations of military aviation assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises concerns about the government receiving the best value.
The specific nature of the aircraft parts may indicate a reliance on a single supplier, posing a risk if that supplier faces issues.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
L3Harris Technologies is an established defense contractor, suggesting a degree of reliability.
The contract addresses a specific need for aircraft parts, ensuring operational readiness.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a vital component of the aerospace and defense industry. This contract falls within a segment that supports the sustainment and operational capabilities of military aircraft. Spending in this area is often characterized by specialized manufacturing and long-term support agreements, with a significant portion of the market dominated by established defense contractors. Benchmarking this contract's value would ideally involve comparing it to other sole-source or competitively awarded contracts for similar aircraft components within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to L3Harris Technologies Integrated Systems L.P., a large corporation, suggests that subcontracting opportunities for small businesses may be limited unless explicitly mandated or pursued by the prime contractor. Further investigation into L3Harris's subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General's office may conduct audits or investigations into the contract's execution, particularly concerning pricing and performance, especially given the sole-source nature. Transparency is limited due to the lack of a competitive bidding process, making public scrutiny of the award decision more challenging.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Programs
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 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 $31.4 million.

What is the period of performance?

Start: 2017-12-28. End: 2019-01-31.

What is L3Harris Technologies' track record with the Department of the Air Force for similar aircraft parts?

L3Harris Technologies Integrated Systems L.P. has a history of contracts with the Department of Defense, including the Air Force, often related to aerospace systems and components. Analyzing their past performance on similar sole-source or competitively awarded contracts for aircraft parts would provide insight into their reliability, delivery timeliness, and adherence to quality standards. A review of contract databases and performance reports would reveal any recurring issues or consistent successes. Given their established presence, it's likely they have fulfilled numerous requirements, but the specific nature and scale of past awards for comparable parts are crucial for a thorough assessment of their suitability and pricing competitiveness in this instance.

How does the $31.4 million award compare to market rates for similar aircraft parts, especially given the sole-source nature?

Benchmarking this $31.4 million award against market rates for similar aircraft parts is challenging due to its sole-source designation. Without competitive bids, there's no direct market comparison to establish a 'best value' price. To assess value, one would need to analyze historical pricing for these specific parts if previously procured competitively, or compare them to prices for analogous components from other manufacturers, adjusting for differences in specifications, quantity, and supplier capabilities. Industry reports on aerospace component pricing and expert consultations could also provide a basis for comparison. The absence of competition inherently raises the risk that the price may not be as favorable as it could be under a competitive scenario.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with this sole-source award include potential overpayment due to the lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or leverage. Furthermore, if L3Harris Technologies faces production issues, supply chain disruptions, or financial instability, the Air Force could experience significant delays or be forced into another sole-source negotiation under potentially less favorable terms. The absence of multiple bidders also means a missed opportunity to foster broader market engagement and potentially identify new, more cost-effective suppliers.

What is the expected program effectiveness or impact of receiving these aircraft parts?

The expected program effectiveness hinges on the timely delivery and quality of the aircraft parts procured under this contract. These parts are critical for maintaining the operational readiness and safety of Air Force aircraft. Successful execution of this contract should ensure that aircraft are available for their intended missions, contributing directly to national security objectives. The impact is measured by the sustained flight hours, reduced downtime for aircraft maintenance, and the overall reliability of the fleet. If the parts are of high quality and delivered as scheduled, the program's effectiveness will be high, supporting the Air Force's operational tempo and strategic goals.

How does this $31.4 million award fit into the historical spending patterns for aircraft parts by the Department of the Air Force?

This $31.4 million award represents a specific instance of spending within the broader category of aircraft parts procurement by the Department of the Air Force. To understand its place in historical spending patterns, one would need to examine the Air Force's total expenditure on aircraft parts over several fiscal years, identifying trends in contract values, types of parts procured, and the prevalence of sole-source versus competitive awards. This particular contract's value should be compared against the average award size and the total annual spending for similar components. If the Air Force consistently spends significant amounts on sole-source contracts for specific parts, it indicates a potential systemic issue or a strategic reliance on certain suppliers that warrants further scrutiny regarding cost-effectiveness and long-term strategy.

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: $31,358,360

Exercised Options: $31,358,360

Current Obligation: $31,358,360

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,041,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline