DoD's $24.9M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts

Contract Overview

Contract Amount: $24,893,441 ($24.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2017-12-14

End Date: 2019-01-14

Contract Duration: 396 days

Daily Burn Rate: $62.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $24.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI Key points: 1. Contract awarded to L3Harris Technologies for "Other Aircraft Parts and Auxiliary Equipment Manufacturing". 2. Significant award value of $24.9 million. 3. Contract was not competed, raising questions about price discovery. 4. The sector is Defense, specifically supporting the Air Force.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without a competitive bidding process, it's difficult to assess if the $24.9 million price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these aircraft parts and auxiliary equipment.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of the Air Force received critical aircraft parts. L3Harris Technologies secured a substantial contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type

Positive Signals

  • Awarded to established defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically related to aircraft parts. Spending in this area is critical for military readiness, but competitive procurement is essential to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, as it was awarded directly to L3Harris Technologies.

Oversight & Accountability

The contract was awarded by the Department of the Air Force. Oversight would focus on ensuring the contractor delivers the specified parts and that costs are reasonable under the Cost Plus Fixed Fee structure.

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
  • Potential for cost overruns
  • Lack of price transparency
  • Limited small business participation

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2017-12-14. End: 2019-01-14.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without further details on the specific requirements of the BIG SAFARI program, it's difficult to ascertain the precise reason. However, sole-source contracts often bypass competitive processes, potentially leading to higher costs and reduced transparency for taxpayers.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF can be useful for research and development or when cost uncertainty is high, it offers less incentive for cost control compared to fixed-price contracts. This structure can lead to higher overall costs if the contractor's expenses are not rigorously monitored and controlled by the government.

What is the potential impact of this non-competitive award on future procurements for similar aircraft parts?

A pattern of sole-source awards for similar parts could signal a lack of market competition or a preference for specific vendors. This may discourage other potential suppliers from entering the market or bidding on future opportunities. Consequently, the government might continue to face higher prices and reduced innovation due to the absence of a competitive environment.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $25,956,491

Exercised Options: $25,013,009

Current Obligation: $24,893,441

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $6,421,666

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

Start Date: 2017-12-14

Current End Date: 2019-01-14

Potential End Date: 2019-01-14 00:00:00

Last Modified: 2023-08-03

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