DoD's $37.2M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $37,245,957 ($37.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-09-17

End Date: 2023-12-31

Contract Duration: 1,931 days

Daily Burn Rate: $19.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $37.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $37.2 million awarded to L3Harris. 2. Sole-source award to L3Harris raises questions about competition and potential price inflation. 3. Long contract duration of 1931 days (over 5 years) warrants scrutiny for ongoing value. 4. The 'Other Aircraft Parts' sector is broad, making direct benchmarking difficult without more detail.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without specific performance metrics or comparable contract data, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to L3Harris. This lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition on a $37.2 million contract means taxpayers may be paying a premium compared to a competitively bid scenario.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense is reliant on a single contractor for critical aircraft parts. The long duration of the contract suggests a sustained need, but the value proposition over time is unclear.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long contract duration
Limited transparency on specific parts/services

Positive Signals

Awarded to a known defense contractor
Supports Department of Defense operations

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for military readiness, but specific benchmarks are hard to establish without knowing the exact nature of the parts procured.

Small Business Impact

The awardee is L3Harris Technologies, a large corporation, not a small business. There is no indication that small businesses were involved as subcontractors in this specific award.

Oversight & Accountability

The sole-source nature of this award suggests a potential need for enhanced oversight to ensure fair pricing and prevent cost overruns, especially given the Cost Plus Fixed Fee structure.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits price competition.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration increases risk of cost escalation and obsolescence.
Lack of specific item details hinders value assessment.
Potential for taxpayer overpayment due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2018-09-17. End: 2023-12-31.

What specific aircraft parts or auxiliary equipment are being procured under this contract, and how do their costs compare to market rates or similar government procurements?

The provided data does not specify the exact parts or equipment. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code is very broad. Without this detail, it's impossible to perform a precise cost comparison. The Cost Plus Fixed Fee structure also complicates direct value assessment, as profit is fixed but costs can fluctuate.

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

The data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards require a justification, such as a unique capability, urgent need, or lack of other responsible sources. Without the official justification document, it's unknown if alternatives were explored or why competition was deemed infeasible.

How is the effectiveness of the procured aircraft parts and auxiliary equipment being measured to ensure they meet DoD operational requirements?

Effectiveness measurement is not detailed in the provided data. For a Cost Plus Fixed Fee contract, oversight typically focuses on cost control and delivery schedules. Performance metrics related to the actual utility or reliability of the parts would be crucial for assessing true effectiveness and value over the contract's long duration.

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: 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: $37,245,957

Exercised Options: $37,245,957

Current Obligation: $37,245,957

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $650,607

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