DoD's $128.6M BIG SAFARI contract awarded to L3Harris for aircraft parts, lacking competition

Contract Overview

Contract Amount: $128,650,620 ($128.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-06-22

End Date: 2020-06-30

Contract Duration: 739 days

Daily Burn Rate: $174.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $128.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $128.6 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. Awarded by the Department of the Air Force, indicating a specific operational need.

Value Assessment

Rating: questionable

The contract value of $128.6 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar aircraft parts and auxiliary equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best value for their investment.

Public Impact

Taxpayers may be overpaying for critical aircraft components due to the absence of competitive bidding. The sole-source nature of the award could stifle innovation in the aircraft parts manufacturing sector. Dependence on a single supplier for essential equipment could pose a supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Specific program name (BIG SAFARI)
Awarded by Department of Defense

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for national defense. Spending in this area is often characterized by high technical requirements and specialized production, but competitive practices are crucial for cost efficiency.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to L3Harris Technologies.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure proper justification and that the price paid is fair and reasonable, despite the lack of competition.

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
Lack of competition
High contract value without clear justification for sole-sourcing
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. 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 $128.7 million.

What is the period of performance?

Start: 2018-06-22. End: 2020-06-30.

What was the justification for awarding this significant 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 lack of viable alternatives. Without further details on the 'BIG SAFARI' program, it's difficult to ascertain the specific reasons. However, the absence of competition for a $128.6 million contract raises questions about whether a more competitive approach could have yielded better value and fostered broader industry participation.

How does the awarded price compare to industry benchmarks for similar aircraft parts and auxiliary equipment, given the sole-source nature of the contract?

Assessing the price against industry benchmarks is challenging without competitive data. Sole-source contracts inherently lack the price discovery mechanism of open competition. It is crucial for the Department of Defense to have conducted thorough price analysis to ensure the $128.6 million is fair and reasonable, potentially through historical pricing, cost breakdowns, or independent cost estimates.

What are the potential long-term risks associated with awarding such a large contract without competition, particularly regarding technological advancement and supply chain resilience?

Awarding a large contract without competition can lead to risks such as vendor complacency, reduced incentive for innovation, and potential price escalation over time. It may also create a dependency on a single supplier, impacting supply chain resilience if that supplier faces disruptions. This underscores the importance of robust oversight and periodic re-evaluation of competitive strategies.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $128,650,620

Exercised Options: $128,650,620

Current Obligation: $128,650,620

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $116,834,108

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline