DoD's $46.6M Big Safari contract to L3Harris for aircraft parts shows limited competition and potential value concerns

Contract Overview

Contract Amount: $46,606,441 ($46.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-03-27

End Date: 2026-12-30

Contract Duration: 2,835 days

Daily Burn Rate: $16.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $46.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract was awarded on a sole-source basis, raising questions about price discovery and potential overspending. 2. The duration of the contract (2835 days) suggests a long-term need for these specialized aircraft parts. 3. The award to L3Harris, a large defense contractor, indicates a focus on established players for critical components. 4. The lack of competition may limit opportunities for innovation and cost reduction from a broader market. 5. Performance context is limited due to the nature of the award, making value assessment challenging. 6. Sector positioning within 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is broad, but the specific need is likely niche.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult without a competitive process. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex or uncertain work, can lead to higher costs if not managed closely. Without comparable sole-source awards or market research data, it's hard to definitively assess if the pricing reflects fair market value. The significant duration suggests a substantial investment, making rigorous oversight crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not conduct a competitive bidding process. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition means there were no other bidders to compare against, potentially impacting the government's ability to secure the best possible price and terms.

Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward price pressure that competition provides. This can result in higher costs for the government and, consequently, for taxpayers.

Public Impact

The primary beneficiaries are likely the U.S. Air Force units requiring specialized aircraft parts for their operations. The contract delivers essential components for maintaining and operating specific aircraft platforms, ensuring mission readiness. The geographic impact is primarily within Texas, where L3Harris's facility is located, potentially supporting local jobs. Workforce implications include the employment of skilled labor at L3Harris for manufacturing and support of these aircraft parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
CPFF contract type can incentivize higher costs if not rigorously managed.
Long contract duration requires sustained oversight to ensure continued value.
Lack of transparency in pricing due to sole-source nature.

Positive Signals

Award to an established contractor (L3Harris) suggests reliability and existing expertise.
Contract supports critical Department of Defense aircraft, indicating strategic importance.
Long-term nature suggests a stable supply chain for essential components.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is diverse, encompassing a wide range of components from simple fasteners to complex avionics. This contract likely falls into a specialized niche within this broad category, serving specific military aircraft needs. The defense aerospace market is characterized by high barriers to entry, stringent quality requirements, and significant government investment. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the parts, but large sole-source awards for specialized defense components are not uncommon, though they often draw scrutiny.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). As a sole-source award to a large prime contractor, L3Harris Technologies, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or easily accessible unless L3Harris proactively seeks them. This could limit the direct impact on the small business defense industrial base for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the Cost Plus Fixed Fee structure and long duration, regular audits and performance reviews by the agency and potentially the Defense Contract Audit Agency (DCAA) would be expected. Transparency is limited due to the sole-source nature, but contract modifications, performance reports, and payment data should be accessible through federal procurement databases. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Aircraft Maintenance Contracts
Air Force Logistics and Sustainment Programs
Specialized Aerospace Component Manufacturing
Sole-Source Defense Procurements

Risk Flags

Sole-source award limits competition.
CPFF contract type can lead to cost overruns without strict oversight.
Long contract duration increases exposure to market volatility and scope creep.
Lack of detailed public information on specific deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 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 $46.6 million.

What is the period of performance?

Start: 2019-03-27. End: 2026-12-30.

What specific aircraft platforms or systems does the 'BIG SAFARI' program support, and why is L3Harris the sole provider?

The 'BIG SAFARI' program, managed by the Air Force Life Cycle Management Center (AFLCMC), is an umbrella for rapid acquisition of "Special Projects" and intelligence, surveillance, and reconnaissance (ISR) capabilities. While the specific aircraft or systems supported by this particular $46.6 million delivery order are not detailed in the provided data, 'BIG SAFARI' often involves highly specialized, sometimes classified, modifications or additions to existing platforms, or the development of novel ISR assets. L3Harris Technologies is a major defense contractor with extensive experience in avionics, electronic warfare, and ISR systems. Its sole-source award suggests it possesses unique proprietary technology, critical intellectual property, or specialized manufacturing capabilities essential for the 'BIG SAFARI' mission that other companies do not currently offer or cannot replicate within the required timeframe and security constraints.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the potential cost and value for taxpayers on this long-term sole-source award?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor (L3Harris) to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. For taxpayers, this structure presents a potential risk on a sole-source award like this one. While the fixed fee provides some cost certainty regarding profit, the 'cost' portion is variable. If L3Harris's costs escalate due to unforeseen technical challenges, material price increases, or inefficiencies, the total expenditure for the government will rise accordingly. Without competitive pressure to drive down costs and with limited transparency into the contractor's actual cost drivers, the government relies heavily on robust oversight and negotiation to ensure the costs are reasonable and the fixed fee is appropriate. The long duration (over 7 years) amplifies this risk, as market conditions and project complexities can change significantly over time.

What are the key performance indicators (KPIs) likely being used to assess L3Harris's performance under this contract, given its sole-source nature?

Given the sole-source and CPFF nature of this contract, Key Performance Indicators (KPIs) would likely focus on adherence to schedule, quality of deliverables, and effective cost management within the agreed-upon framework. Specific KPIs might include on-time delivery of parts or services, meeting stringent technical specifications and quality assurance standards (e.g., defect rates, compliance with aerospace certifications), and managing incurred costs within projected budgets. For a CPFF contract, demonstrating efficient resource utilization and proactive identification and mitigation of cost risks would also be critical. Performance would be measured against the contract's statement of work and any specific milestones or technical objectives outlined. Regular progress reports and technical reviews would be essential for monitoring these KPIs.

What is the historical spending pattern for the 'BIG SAFARI' program, and how does this $46.6M award compare?

The 'BIG SAFARI' program is known for its agility and rapid acquisition approach, often involving multiple, diverse contract actions rather than a single, monolithic contract. Historical spending under 'BIG SAFARI' has varied significantly year-to-year, reflecting the ad-hoc and project-driven nature of its acquisitions. Awards can range from small, targeted research and development efforts to multi-million dollar modifications and system integrations. A $46.6 million award for specialized aircraft parts, while substantial, is within the typical range for significant 'BIG SAFARI' procurements, especially those involving complex systems integration or unique hardware. Without access to the full historical spending database for 'BIG SAFARI' and the specific details of this contract's scope, a precise comparison is difficult, but it represents a notable investment within the program's portfolio.

Are there any known risks associated with L3Harris Technologies as a contractor that might impact this specific 'BIG SAFARI' contract?

L3Harris Technologies is a large, established defense contractor with a generally strong track record. However, like any major corporation, potential risks can exist. These might include past performance issues on similar complex programs, challenges related to supply chain disruptions (which have affected the entire aerospace industry), or potential cost overruns on fixed-fee contracts if project complexities are underestimated. Specific to 'BIG SAFARI', which often involves cutting-edge or classified technology, risks could also relate to integration challenges, cybersecurity vulnerabilities, or the need for rapid adaptation to evolving threats or requirements. A thorough review of L3Harris's recent performance history, particularly on sole-source or CPFF contracts with the DoD, would be necessary to identify any specific red flags relevant to this particular award.

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: 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: $47,730,989

Exercised Options: $47,730,989

Current Obligation: $46,606,441

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $5,790,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline