DoD's $837M BIG SAFARI contract to L3Harris for aircraft parts shows limited competition and potential value concerns

Contract Overview

Contract Amount: $83,739,863 ($83.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-12-27

End Date: 2023-09-30

Contract Duration: 1,738 days

Daily Burn Rate: $48.2K/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 $83.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $837 million over nearly five years suggests a significant investment in specialized aircraft components. 2. Limited competition raises questions about price discovery and potential overpayment for goods and services. 3. The fixed-price contract type aims to transfer some risk to the contractor, but oversight is crucial for value. 4. Performance context is limited without specific details on the aircraft parts or their criticality. 5. The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, indicating a niche but vital area of defense support. 6. The sole-source nature of this award warrants scrutiny regarding the justification for not pursuing a competitive process.

Value Assessment

Rating: questionable

Benchmarking the value of this $837 million contract is challenging without specific details on the aircraft parts procured. However, the lack of competition suggests that taxpayers may not have received the best possible pricing. Compared to similar sole-source awards for specialized defense components, the price could be inflated if robust market research and negotiation were not adequately performed. The firm fixed-price structure offers some cost certainty, but the absence of competitive pressure is a primary concern for value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided, but it typically implies that only one vendor possesses the necessary capabilities, technology, or proprietary knowledge to fulfill the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive bidding, which could have driven down prices. This lack of competition limits transparency and makes it harder to ensure the government is obtaining the best value for its investment.

Public Impact

The Department of the Air Force benefits from the continued availability of critical aircraft parts, ensuring operational readiness. This contract supports the maintenance and sustainment of specific aircraft platforms within the DoD's inventory. The primary beneficiaries are likely military personnel and the operational units relying on these aircraft. The contract's impact is concentrated within the aerospace and defense manufacturing sector, specifically in Texas where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for taxpayers.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if pricing is not rigorously managed without competition.
Limited insight into the specific parts and their criticality without further detail.

Positive Signals

Firm fixed-price contract type provides cost certainty to the government.
Contract supports critical defense capabilities and operational readiness.
Long-term contract duration suggests a stable supply chain for essential components.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized segment of the broader aerospace and defense industry. This sector is characterized by high technological barriers to entry, stringent quality requirements, and often, long product lifecycles. The market size for such specialized components can be substantial, driven by the continuous need for maintenance, repair, and overhaul (MRO) of military aircraft fleets. Comparable spending benchmarks are difficult to establish without knowing the specific components, but large sole-source contracts in defense manufacturing often represent significant investments in unique capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting goals for small businesses (sb: false). This suggests that the primary contractor, L3Harris Technologies, is likely a large business, and the contract may not directly benefit the small business ecosystem through set-asides or mandated subcontracting. The focus appears to be on fulfilling a large, specialized requirement, potentially bypassing opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a sole-source award, the justification and negotiation process would be subject to internal DoD review and potentially oversight from the Government Accountability Office (GAO) if protests were filed. Transparency is limited due to the non-competitive nature, and the Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Logistics Agency (DLA) Contracts
Air Force Sustainment and Maintenance Programs
Sole-Source Defense Procurements
L3Harris Technologies Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.7 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 $83.7 million.

What is the period of performance?

Start: 2018-12-27. End: 2023-09-30.

What specific aircraft parts or systems does the BIG SAFARI contract cover, and what is their criticality to Air Force operations?

The provided data identifies the contract under NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' and refers to it as 'BIG SAFARI.' However, it does not specify the exact aircraft parts or systems procured. The criticality of these components is therefore unknown from this data alone. Typically, such contracts support the sustainment, repair, or upgrade of specific military aircraft platforms. Without further details on the end-item or the platform it supports, assessing its direct impact on operational readiness or mission capability is speculative. Further investigation into the 'BIG SAFARI' program designation would be necessary to determine the specific parts and their importance.

What was the justification for awarding the $837 million BIG SAFARI contract to L3Harris Technologies on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED' and awarded on a 'sole-source' basis. The specific justification for this sole-source award is not provided in the dataset. Generally, sole-source procurements are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique technical capabilities, proprietary data rights, urgent and compelling needs where competition is not feasible, or specific program requirements that limit the pool of potential contractors. A thorough review of the contract file, including the Justification and Approval (J&A) document, would be required to understand the official rationale behind bypassing the competitive bidding process for this substantial $837 million award.

How does the $837 million contract value compare to historical spending on similar aircraft parts or for the specific aircraft platforms supported?

Comparing the $837 million contract value to historical spending is difficult without knowing the specific aircraft parts or platforms involved. The contract duration is 1738 days (approximately 4.76 years), suggesting an average annual spend of roughly $176 million. To benchmark this value, one would need to identify comparable contracts for the same or similar aircraft parts, ideally awarded competitively. Analyzing historical spending patterns for the specific aircraft platforms supported by 'BIG SAFARI' would also provide context. Given the sole-source nature, a direct comparison to competitively awarded contracts for similar items would be the most effective way to assess potential value for money, though such data is not present here.

What are the potential risks associated with a large, sole-source contract for aircraft parts, and what mitigation strategies are in place?

The primary risk of a large, sole-source contract is the potential for inflated pricing due to the lack of competitive pressure, leading to reduced value for taxpayers. Other risks include contractor performance issues going unaddressed due to limited leverage, and a lack of innovation. Mitigation strategies typically involve robust government oversight, detailed performance metrics, stringent quality assurance processes, and potentially, negotiation of favorable terms and conditions. For this $837 million contract, the firm fixed-price structure shifts some financial risk to L3Harris. However, the government must actively manage the contract, conduct market research for future procurements, and ensure the contractor meets all performance and quality standards to mitigate risks.

What is L3Harris Technologies' track record with the Department of Defense, particularly on large sole-source contracts?

L3Harris Technologies is a major defense contractor with a significant history of working with the Department of Defense across various platforms and services. While this specific dataset does not detail their overall track record, their position as a large sole-source awardee for a substantial contract like 'BIG SAFARI' implies a recognized capability and established relationship with the Air Force. To assess their track record thoroughly, one would need to examine their past performance ratings on similar contracts, any history of contract disputes or overruns, and their success in delivering complex systems or components. Their extensive presence in the defense sector suggests a generally capable organization, but specific performance on sole-source awards warrants detailed review.

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: $83,739,863

Exercised Options: $83,739,863

Current Obligation: $83,739,863

Subaward Activity

Number of Subawards: 98

Total Subaward Amount: $65,047,566

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