DoD's $65.6M BIG SAFARI contract awarded to L3Harris for Engineering Services shows limited competition

Contract Overview

Contract Amount: $65,643,234 ($65.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-12-01

End Date: 2020-11-30

Contract Duration: 730 days

Daily Burn Rate: $89.9K/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: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $65.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value is substantial at $65.6 million. 2. L3Harris Technologies is the sole contractor, indicating limited competition. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. Engineering Services is a broad category, making direct sector benchmarks difficult without more detail.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while flexible, offers less incentive for the contractor to control costs compared to fixed-price contracts. Without detailed performance data, it's difficult to assess if the $65.6 million represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', suggesting a sole-source or limited competition award. This significantly reduces price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense received specialized engineering services, but the cost-effectiveness is uncertain. The long duration (730 days) suggests a significant, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No small business participation indicated

Positive Signals

Awarded to a known entity (L3Harris)
Specific agency (Air Force) and program (BIG SAFARI)

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a broad category. Defense engineering services can be highly specialized and command premium pricing, but the lack of competition here is a concern for benchmarking.

Small Business Impact

The data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were not pursued or included in this specific contract.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that fair pricing was achieved.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Cost Plus Fixed Fee contract type
No small business participation
Potential for cost overruns
Limited transparency on justification for non-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.6 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 $65.6 million.

What is the period of performance?

Start: 2018-12-01. End: 2020-11-30.

What was the specific justification for not competing this contract, and were alternative competitive strategies considered?

The justification for not competing this contract is crucial for understanding the value proposition. Without competition, the government relies heavily on negotiation and market research to ensure fair pricing. Exploring alternative competitive strategies, even for specialized services, could have potentially yielded better cost outcomes for the taxpayer.

How does the final cost compare to the initial estimated cost, and what factors contributed to any variance?

Analyzing the final cost against the initial estimate is key to assessing financial risk. Cost Plus Fixed Fee contracts can be prone to cost growth if not managed diligently. Understanding the variance drivers, such as scope changes or unforeseen technical challenges, provides insight into the contractor's performance and the overall effectiveness of the contract.

What specific engineering services were provided under BIG SAFARI, and how critical are they to Air Force operations?

The criticality of the engineering services to Air Force operations directly impacts the acceptable risk and potential cost. Highly critical, specialized services might justify less competitive awards, but transparency regarding the scope and impact is essential. Understanding the deliverables helps assess if the $65.6 million investment was effective and aligned with strategic defense needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 1655 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,749,837

Exercised Options: $67,444,561

Current Obligation: $65,643,234

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,774,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862019G4006

IDV Type: BOA

Timeline