DoD's $29.3M Big Safari contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $29,342,691 ($29.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-06-26

End Date: 2022-10-31

Contract Duration: 1,223 days

Daily Burn Rate: $24.0K/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 $29.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess due to the lack of competitive bidding. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, given the sole-source nature and fixed-price contract type. 4. Performance context is tied to the 'Big Safari' program, known for rapid acquisition. 5. This contract falls within the Defense sector, specifically focusing on aircraft parts. 6. The contractor, L3Harris, is a significant player in the aerospace and defense industry.

Value Assessment

Rating: fair

Benchmarking the value of this $29.3 million contract is challenging due to its sole-source award. Without competitive bids, it's difficult to determine if the pricing reflects market rates or represents a fair value for the aircraft parts and auxiliary equipment provided. The firm fixed-price structure offers some cost certainty but doesn't inherently guarantee optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed openly. This approach limits the number of potential bidders and can reduce the pressure on pricing. While sole-source awards can be justified for specific needs or existing systems, they typically result in less competitive pricing compared to full and open competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This can lead to higher overall costs for the government.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially its operational units requiring specialized aircraft parts. The contract delivers essential components and auxiliary equipment for aircraft, supporting military readiness. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include employment opportunities at L3Harris Technologies in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Dependence on a single contractor may create supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established defense contractor like L3Harris suggests technical capability.
The 'Big Safari' program is designed for rapid acquisition, implying a need for speed and specialized support.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government spending. Contracts for aircraft parts and auxiliary equipment are crucial for maintaining military aviation capabilities. This $29.3 million contract fits within the broader landscape of defense procurement, where specialized components are often sourced from established prime contractors. Market size for such components is substantial, driven by global defense budgets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like L3Harris suggests that the focus was on direct delivery of capabilities rather than leveraging the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management systems. Accountability measures are inherent in the firm fixed-price structure, which caps the government's liability. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Big Safari Program
Aircraft Parts Procurement
Department of the Air Force Contracts
L3Harris Technologies Contracts

Risk Flags

Sole Source Award
Lack of Competition
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 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 $29.3 million.

What is the period of performance?

Start: 2019-06-26. End: 2022-10-31.

What is the historical spending pattern for the 'Big Safari' program, and how does this contract compare?

The 'Big Safari' program is an Air Force initiative focused on rapid acquisition of special operations and intelligence, surveillance, and reconnaissance (ISR) capabilities. Historical spending within this program varies significantly year-to-year, depending on specific project needs and funding allocations. This $29.3 million contract represents a moderate investment within the program's scope. Without access to detailed historical spending data for 'Big Safari' and specific sub-projects, a precise comparison is difficult. However, contracts under 'Big Safari' are often characterized by their urgency and specialized nature, which can sometimes justify non-competitive awards or higher unit costs compared to standard procurement.

What is L3Harris Technologies' track record with similar sole-source contracts for aircraft parts?

L3Harris Technologies, and its predecessor companies, have a long history of securing sole-source contracts within the defense sector, particularly for specialized aerospace and defense systems. Their track record includes numerous awards for aircraft modifications, avionics, and component manufacturing, often justified by proprietary technology, existing system integration, or urgent operational needs. While specific data on sole-source contracts for aircraft parts is not publicly itemized, L3Harris's established position as a major defense contractor suggests they possess the technical expertise and production capacity to fulfill such requirements. However, the absence of competition in sole-source awards necessitates careful government oversight to ensure fair pricing and value.

How does the firm fixed-price (FFP) contract type mitigate risks for this specific 'Big Safari' acquisition?

The firm fixed-price (FFP) contract type is generally considered advantageous for the government when requirements are well-defined and risks are understood, as it shifts most of the cost risk to the contractor. For this 'Big Safari' acquisition, the FFP structure means L3Harris is obligated to deliver the specified aircraft parts and auxiliary equipment at the agreed-upon price, regardless of their actual costs incurred. This provides the Department of the Air Force with cost certainty and protects against potential cost overruns. The primary risk mitigated for the government is unexpected increases in the contractor's expenses. However, the initial price negotiation is critical, as the contractor will likely build in a contingency for unforeseen issues.

What are the potential implications of awarding this contract solely to L3Harris for future competition in this niche market?

Awarding this contract solely to L3Harris, without a competitive process, could have several implications for future competition in this niche market. Firstly, it may discourage other potential suppliers from entering or investing in this specific area if they perceive that established players like L3Harris have preferential access or are consistently awarded sole-source contracts. Secondly, it could lead to a lack of market intelligence regarding competitive pricing and technological advancements from other firms. Over time, this can reduce the overall competitive landscape, potentially leading to higher prices and less innovation in subsequent procurements. The government's reliance on a single source can also create barriers for new entrants.

Can the $29.3 million value be benchmarked against similar 'Big Safari' program contracts or other DoD aircraft parts procurements?

Benchmarking the $29.3 million value of this contract against similar 'Big Safari' program contracts or other DoD aircraft parts procurements is challenging without more specific details on the nature of the parts and services rendered. The 'Big Safari' program often involves highly specialized, low-volume, or rapidly developed systems, which can command different price points than standard, high-volume parts. If this contract involves unique components or rapid prototyping, its value might be considered reasonable within the program's context. However, if it pertains to more common aircraft parts, the lack of competition makes a direct value comparison difficult. Generally, sole-source contracts tend to be higher than competitively procured ones for comparable items.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $29,342,691

Exercised Options: $29,342,691

Current Obligation: $29,342,691

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,637,035

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline