DoD's $36.3M Big Safari contract awarded to L3Harris for aircraft parts shows limited competition

Contract Overview

Contract Amount: $36,307,988 ($36.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-05-06

End Date: 2021-08-20

Contract Duration: 837 days

Daily Burn Rate: $43.4K/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 $36.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value of $36.3 million over its period of performance. 2. Awarded to a single, large defense contractor, indicating potential for limited competition. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. Performance period spans over two years, from May 2019 to August 2021. 5. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 6. Awarded by the Department of the Air Force, a major component of the DoD.

Value Assessment

Rating: fair

The contract's value of $36.3 million is substantial for specialized aircraft parts. Without specific benchmarks for 'BIG SAFARI' components or similar sole-source awards, a direct value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to control costs by placing risk on the contractor. The lack of competition, however, raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one responsible source can fulfill the requirement. The lack of a competitive bidding process means that the government did not benefit from price discovery through multiple offers.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as competition is absent, potentially resulting in less favorable pricing than if multiple vendors had competed.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other DoD entities requiring specialized aircraft parts under the 'BIG SAFARI' program. The contract delivers essential components and auxiliary equipment for aircraft, crucial for maintaining operational readiness. The geographic impact is primarily centered around the contractor's operations in Texas, though the end-use of the parts is global for Air Force operations. Workforce implications include employment at L3Harris Technologies and its potential subcontractors, particularly in specialized manufacturing roles.

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 selection process due to no-bid award.
Potential for contractor lock-in if specialized knowledge or parts are involved.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Award to a known large defense contractor suggests established capabilities.
Contract supports critical Air Force operational needs under the 'BIG SAFARI' program.

Sector Analysis

The 'BIG SAFARI' program, under which this contract was awarded, is known for its focus on rapid acquisition of advanced technologies and capabilities for special operations and intelligence gathering aircraft. This sector involves highly specialized manufacturing and integration services. The market for such components is often dominated by a few large defense contractors due to the technical expertise and security clearances required. Benchmarking is difficult without specific program details, but spending in defense aerospace manufacturing is significant.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like L3Harris Technologies suggests that the primary focus was on capability and delivery rather than small business participation. This could limit opportunities for small businesses to engage in this specific contract's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to review. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Aircraft Procurement
Air Force Special Operations Command Programs
Defense Intelligence Agency Support
Advanced Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.3 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 $36.3 million.

What is the period of performance?

Start: 2019-05-06. End: 2021-08-20.

What is the specific nature of the 'BIG SAFARI' program and the components being procured?

The 'BIG SAFARI' (Special Access For Arkadaşlar, Research, Guidance, and Innovation) program is an Air Force initiative focused on rapidly acquiring and integrating advanced technologies and capabilities for special operations and intelligence, surveillance, and reconnaissance (ISR) platforms. The specific components procured under this contract are not detailed but fall under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' Given the program's nature, these likely include highly specialized, custom-designed, or technologically advanced parts critical for modifying or enhancing existing aircraft for specific mission requirements, potentially involving sensors, communication systems, or unique structural modifications.

What is L3Harris Technologies' track record with similar sole-source contracts for the DoD?

L3Harris Technologies, a major defense contractor formed from the merger of L3 Technologies and Harris Corporation, has a significant history of receiving sole-source and competitively awarded contracts from the DoD across various domains, including aerospace, communications, and electronic systems. They are frequently involved in specialized programs requiring advanced technological solutions. While specific data on their sole-source awards for 'BIG SAFARI' components isn't provided, their extensive experience suggests a strong capability to meet complex DoD requirements. However, the pattern of sole-source awards to large, established contractors like L3Harris often raises questions about the extent of competition and potential cost efficiencies.

How does the $36.3 million contract value compare to other 'BIG SAFARI' program expenditures?

Without access to the full scope and historical spending data for the 'BIG SAFARI' program, it is difficult to definitively benchmark this $36.3 million contract against other expenditures. However, the 'BIG SAFARI' program is known for its rapid acquisition approach and focus on high-value, specialized capabilities. Contracts within this program can range significantly, from smaller technology development efforts to larger integration and modification projects. A $36.3 million award suggests a substantial procurement, likely for a critical set of components or a significant modification phase, rather than a minor supply or research effort. Further analysis would require comparing it to the total program budget and other contract awards within the same program.

What are the primary risks associated with a sole-source award for specialized aircraft parts?

The primary risks associated with a sole-source award for specialized aircraft parts include: 1. **Higher Costs:** The absence of competition can lead to inflated prices as the contractor faces less pressure to offer the most competitive bid. 2. **Reduced Innovation:** Without competitive pressure, there may be less incentive for the contractor to innovate or improve efficiency. 3. **Limited Accountability:** The government has fewer options if the contractor underperforms, as switching providers for specialized parts can be difficult and costly. 4. **Potential for Contractor Lock-in:** If the parts are highly proprietary or require unique expertise, the government may become dependent on the sole-source provider. 5. **Lack of Transparency:** The justification for a sole-source award needs rigorous scrutiny to ensure it is truly necessary and not a result of poor planning or contractor influence.

What is the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Air Force?

Historical spending by the Department of the Air Force (and the DoD broadly) on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) is substantial, reflecting the vast size and operational tempo of the Air Force's fleet. While specific annual figures fluctuate based on modernization programs, sustainment needs, and new platform acquisitions, this category consistently represents billions of dollars annually across the entire DoD. The 'BIG SAFARI' program, being a specialized initiative, likely draws funding from broader aircraft procurement and modification budgets. Analyzing trends would involve looking at overall Air Force RDT&E and procurement accounts, as well as specific program budgets like 'BIG SAFARI', to understand how spending in this sub-sector evolves over time in response to strategic priorities and technological advancements.

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: FIRM FIXED PRICE (J)

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: $36,307,988

Exercised Options: $36,307,988

Current Obligation: $36,307,988

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $34,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline