DoD's BIG SAFARI contract awarded to L3Harris for $214M, impacting Other Aircraft Parts manufacturing

Contract Overview

Contract Amount: $214,137,012 ($214.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-07-31

End Date: 2023-10-30

Contract Duration: 1,552 days

Daily Burn Rate: $138.0K/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 $214.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $214M is significant, indicating substantial investment in aircraft parts. 2. L3Harris Technologies is a major defense contractor, suggesting a competitive landscape for specialized components. 3. The 'Other Aircraft Parts' category is broad, potentially encompassing critical but less visible defense systems. 4. The duration of the contract (over 3 years) points to ongoing needs and potential for long-term reliance.

Value Assessment

Rating: fair

The contract value of $214M for 'Other Aircraft Parts' is substantial. Benchmarking against similar, specialized aircraft component contracts is difficult without more specific product details. The firm fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

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

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of this award. The Department of the Air Force's reliance on a single vendor for these parts could create supply chain vulnerabilities. The specific nature of 'Other Aircraft Parts' means the public impact is indirect, tied to national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Supply chain risk

Positive Signals

Firm fixed-price contract
Long-term award signals critical need

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a niche within the broader aerospace and defense industry. Spending in this area is critical for maintaining and upgrading military aviation assets.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, suggesting limited direct benefit to small businesses through this specific contract. Subcontracting opportunities for small businesses are not detailed.

Oversight & Accountability

As a sole-source award, this contract warrants close oversight to ensure fair pricing and performance. The Department of Defense should have robust internal review processes to justify non-competitive procurements.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing due to lack of competitive bidding.
Dependency on a single supplier creates supply chain risk.
Lack of transparency regarding specific components and cost breakdown.
Significant contract value warrants detailed justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $214.1 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 $214.1 million.

What is the period of performance?

Start: 2019-07-31. End: 2023-10-30.

What specific aircraft parts or auxiliary equipment are covered under this 'BIG SAFARI' contract, and how do their costs compare to market rates for similar items?

The specific components are not detailed in the provided data. However, the $214M value suggests significant or complex parts. A thorough review would involve comparing unit costs against industry benchmarks for comparable specialized aerospace components, considering factors like technological sophistication, material rarity, and required certifications.

What are the justifications for awarding this contract on a sole-source basis, and what steps were taken to mitigate potential cost overruns?

Sole-source awards typically occur when only one vendor possesses the necessary technical capabilities, proprietary technology, or when urgency precludes a competitive process. Mitigation strategies for cost overruns in such cases often include detailed negotiation, independent cost analysis, and strict performance monitoring throughout the contract lifecycle.

How does the performance of L3Harris Technologies on this contract align with the Department of the Air Force's operational readiness and long-term strategic goals?

Assessing alignment requires examining delivery timelines, quality control metrics, and responsiveness to Air Force needs. Consistent on-time delivery of high-quality parts directly supports operational readiness. Long-term strategic goals are met if these parts enable modernization, sustainment, and technological superiority of the Air Force's fleet.

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

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: $214,137,012

Exercised Options: $214,137,012

Current Obligation: $214,137,012

Actual Outlays: $14,807,043

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $29,948,449

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