DoD's $42.4M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts

Contract Overview

Contract Amount: $42,444,072 ($42.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-11-08

End Date: 2021-07-21

Contract Duration: 986 days

Daily Burn Rate: $43.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

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 $42.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value is substantial at over $42 million. 2. L3Harris Technologies is the sole awardee, indicating limited competition. 3. The contract duration of 986 days suggests a significant project timeline. 4. The 'Other Aircraft Parts' category falls under the broader aerospace and defense sector.

Value Assessment

Rating: fair

The contract's fixed-price level of effort structure suggests an attempt to control costs for a defined scope. However, without specific performance metrics or comparison data, assessing the true value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. The sole-source nature suggests unique capabilities or a specific need that L3Harris was deemed to fulfill.

Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these aircraft parts.

Public Impact

Impacts Air Force readiness and operational capabilities through specialized aircraft parts. Potential for increased costs due to sole-source award, affecting taxpayer funds. Highlights reliance on specific contractors for specialized defense equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Fixed Price Level of Effort can be less efficient than other fixed-price types if scope is not well-defined

Positive Signals

Specific need addressed
Contract awarded to established defense contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts. Spending in this sector is often driven by national security needs and technological advancements, with significant government investment.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, and there is no indication that small businesses were involved in this specific contract as subcontractors or partners.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value. Further oversight would involve reviewing the justification for the sole-source award and post-award performance monitoring.

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
Sole-source award
Potential for inflated pricing
Limited transparency on justification
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 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 $42.4 million.

What is the period of performance?

Start: 2018-11-08. End: 2021-07-21.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without specific documentation, it's difficult to ascertain the exact reasons. However, agencies are required to document these justifications thoroughly to ensure fair and open competition principles are upheld to the maximum extent practicable.

How does the pricing of this contract compare to similar contracts or market benchmarks for comparable aircraft parts?

Benchmarking this contract's pricing is challenging without access to detailed cost breakdowns and market data for highly specialized aircraft parts. The 'fair' rating reflects the difficulty in assessing value without comparative data. A thorough review would involve comparing unit costs, material costs, and labor rates against industry standards and previous government contracts for similar items.

What is the potential impact of this sole-source award on future competition and innovation in the aircraft parts manufacturing sector?

Sole-source awards can stifle competition by limiting opportunities for other companies to enter the market or showcase their capabilities. This can reduce pressure on the incumbent contractor to innovate and offer competitive pricing. Over time, a pattern of sole-source awards in a specific niche could lead to reduced market dynamism and potentially higher long-term costs for the government.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

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: $42,444,072

Exercised Options: $42,444,072

Current Obligation: $42,444,072

Actual Outlays: $3,330,529

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline