DoD's $24.3M BIG SAFARI contract awarded to L3Harris for aircraft parts, raising competition concerns
Contract Overview
Contract Amount: $24,340,458 ($24.3M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2019-03-26
End Date: 2021-03-31
Contract Duration: 736 days
Daily Burn Rate: $33.1K/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 $24.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $24.3 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. Awarded by the Department of the Air Force, highlighting defense spending focus.
Value Assessment
Rating: questionable
The contract value of $24.3 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 may result in higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition suggests potential for higher costs, impacting taxpayer value.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense continues to award significant contracts without exploring competitive options. This contract's structure could set a precedent for future sole-source awards in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award process
Positive Signals
- Contract awarded to a known entity (L3Harris)
- Specific need for aircraft parts addressed
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for defense readiness. Benchmarks for this specific niche are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data does not indicate any involvement of small businesses in this contract, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable, and to understand why competition was not pursued.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement
- Missed opportunity for small business engagement
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 $24.3 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 $24.3 million.
What is the period of performance?
Start: 2019-03-26. End: 2021-03-31.
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 is critical for understanding the procurement process. Agencies typically require detailed documentation outlining why a full and open competition was not feasible, such as the existence of a unique capability or a critical, urgent need that cannot be met through other means. Without this information, it's difficult to assess the necessity of bypassing competitive procedures.
How does the $24.3 million price compare to industry benchmarks for similar aircraft parts and auxiliary equipment, especially considering the lack of competition?
Assessing the price against industry benchmarks is challenging without competitive data. However, a $24.3 million contract awarded without competition inherently carries a higher risk of being above fair market value. Independent cost analysis or comparison with similar, competitively awarded contracts for comparable parts would be necessary to determine if the price is reasonable.
What is the long-term strategic impact of awarding such a significant contract without competition on the overall defense supply chain and innovation?
Sole-source awards, especially for substantial amounts, can stifle innovation and reduce competition within the defense supply chain over the long term. It may discourage new entrants and limit the government's access to potentially more cost-effective or technologically advanced solutions that could emerge from a competitive environment. This can lead to increased reliance on incumbent contractors.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other 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: $24,368,389
Exercised Options: $24,368,389
Current Obligation: $24,340,458
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $176,851
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: 2019-03-26
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2025-04-29
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