DoD's $37M IGF BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $37,182,484 ($37.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2019-09-30

Contract Duration: 364 days

Daily Burn Rate: $102.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF 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: IGF::OT::IGF BIG SAFARI Key points: 1. Significant contract value of $37.18 million. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Contract covers 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. Awarded by the Department of the Air Force.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the price reflects fair market value.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts and auxiliary equipment.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense is relying on a single vendor for critical aircraft components. Lack of transparency in the procurement process hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Specific contract for aircraft parts
Awarded by a major defense agency

Sector Analysis

This contract falls under the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending in this sector is often driven by national security needs, but competitive procurement is crucial for cost efficiency.

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 reasonable and that future procurements are competed whenever possible.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. IGF::OT::IGF 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 $37.2 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-09-30.

What justification was provided for the sole-source award of this $37M contract?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or lack of viable alternatives. Further investigation into the contract file would be required to ascertain the specific rationale used by the Department of the Air Force.

What is the potential cost impact of awarding this contract without competition?

Awarding a $37.18 million contract without competition can lead to a significant cost impact for taxpayers. Without competitive bids, the government may not achieve the best possible price. Studies often show that competitive procurements can yield savings of 10-30% or more compared to sole-source awards, suggesting potential overspending in this case.

How does this contract align with the Department of Defense's goals for efficient spending and small business utilization?

This sole-source award to L3Harris for $37.18 million raises questions about alignment with efficiency and small business goals. The lack of competition suggests potential inefficiencies and higher costs. Furthermore, the absence of small business participation indicates a missed opportunity to foster growth within the small business sector, which is often a stated objective for defense spending.

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: 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: $37,520,577

Exercised Options: $37,520,577

Current Obligation: $37,182,484

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