DoD's $31M Big Safari Contract Awarded to L3Harris for Aircraft Parts

Contract Overview

Contract Amount: $31,043,857 ($31.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-01-05

End Date: 2022-12-31

Contract Duration: 1,821 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO 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 $31.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: IGF::CT::IGF ACAT III BIG SAFARI Key points: 1. Significant contract value of $31 million awarded to a single large business. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration of 1821 days suggests a long-term need for these aircraft parts. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized defense needs.

Value Assessment

Rating: questionable

The contract type is 'COST NO FEE', which offers limited incentive for cost control. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, raising concerns about value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $31 million contract means taxpayers may be paying a premium, as there was no market pressure to ensure the lowest possible price.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to the absence of competition. The long-term nature of the contract could lock the government into potentially suboptimal pricing. Lack of transparency in the sole-source award process hinders public scrutiny of spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type

Positive Signals

Awarded to a known defense contractor
Supports critical aircraft parts manufacturing

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for maintaining military readiness. Spending in this area is often subject to specialized requirements and limited supplier bases, but competition is still vital.

Small Business Impact

This contract was awarded to L3Harris Technologies Integrated Systems L.P., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of not competing the contract should be clearly documented.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency
Cost-plus contract type risks
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 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 $31.0 million.

What is the period of performance?

Start: 2018-01-05. End: 2022-12-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further documentation, it's unclear if alternative competitive strategies were explored. A thorough review would examine the market research conducted and the rationale provided for bypassing the standard competitive procurement process to ensure taxpayer funds are used efficiently.

How does the 'COST NO FEE' contract structure impact the government's ability to control costs and ensure value for money?

A 'COST NO FEE' contract means the contractor is reimbursed for allowable costs but receives no fee or profit. While this might seem cost-saving, it can reduce the contractor's incentive to control costs aggressively, as their profit isn't directly tied to efficiency. The government bears the risk of cost overruns, making robust oversight and auditing critical to ensure value.

What is the long-term strategic value of this sole-source contract for the Department of the Air Force's aircraft readiness?

The long-term strategic value hinges on the criticality of the specific aircraft parts supplied by L3Harris. If these parts are unique, proprietary, or essential for maintaining a specific fleet, the sole-source award might be strategically necessary. However, the government should continuously assess the market for potential future competition or alternative solutions to mitigate long-term reliance and potential cost escalations.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other 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 NO FEE (S)

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: $31,043,857

Exercised Options: $31,043,857

Current Obligation: $31,043,857

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $5,833,230

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