DoD's BIG SAFARI contract awarded $40.6M to L3Harris for aircraft parts, facing limited competition

Contract Overview

Contract Amount: $40,632,629 ($40.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2020-03-31

Contract Duration: 396 days

Daily Burn Rate: $102.6K/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 $40.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant award value of $40.6M for aircraft parts. 2. L3Harris Technologies is the sole awardee, indicating limited competition. 3. Contract duration of 396 days suggests a focused, short-term need. 4. Awarded by the Department of the Air Force, highlighting defense sector focus.

Value Assessment

Rating: fair

The contract value of $40.6M for aircraft parts is substantial. Without specific unit details or comparison data, it's difficult to definitively assess pricing against similar contracts. The 'FIRM FIXED PRICE' type suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited competition approach. This method can sometimes lead to higher prices if effective price discovery mechanisms are not employed, as alternatives were not solicited.

Taxpayer Impact: The lack of full and open competition may result in a higher cost to taxpayers compared to a fully competitive scenario.

Public Impact

Supports critical Air Force operations through specialized aircraft parts. Potential impact on the aerospace and defense manufacturing sector. Ensures availability of specific components for military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about potential overpricing.
  • Lack of transparency in the sole-source justification.
  • Potential for vendor lock-in with L3Harris.

Positive Signals

  • Firm Fixed Price contract provides cost predictability.
  • Award supports a key defense agency (Air Force).

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. Spending in this area is often driven by specific military requirements and technological advancements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as L3Harris Technologies is a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The 'NOT COMPETED' status suggests a need for robust justification and oversight to ensure the government received fair value. Further review of the justification for other than full and open competition would be warranted.

Related Government Programs

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

Risk Flags

  • Limited competition
  • Lack of justification for sole-source award
  • Potential for inflated pricing
  • No small business participation evident

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 $40.6 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 $40.6 million.

What is the period of performance?

Start: 2019-03-01. End: 2020-03-31.

What was the specific justification for not competing this contract, and how was the price determined to be fair and reasonable?

The justification for not competing this contract is not provided in the data. Typically, such justifications include reasons like urgent and compelling needs, or the availability of only one responsible source. The price determination would rely on historical data, commercial item pricing, or independent government cost estimates, but specifics are absent here.

What is the risk associated with awarding a $40.6M contract without full competition to a single vendor?

The primary risk is paying a non-competitive price, potentially exceeding fair market value due to the lack of alternative bids. There's also a risk of reduced innovation and a lack of incentive for the vendor to be highly efficient. Furthermore, it could limit future competition if the vendor becomes entrenched.

How does this contract contribute to the overall effectiveness of the Department of the Air Force's operations?

This contract likely provides essential aircraft parts and auxiliary equipment necessary for maintaining the Air Force's fleet. Ensuring the availability and proper functioning of these components is crucial for operational readiness, mission accomplishment, and overall mission effectiveness. The specific impact depends on the criticality of the parts supplied.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: 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: $45,853,501

Exercised Options: $45,853,501

Current Obligation: $40,632,629

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $280,263

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: 2019-03-01

Current End Date: 2020-03-31

Potential End Date: 2020-03-31 00:00:00

Last Modified: 2024-09-04

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