DoD's $59.7M BIG SAFARI contract awarded to L3Harris for aircraft parts, raising competition concerns

Contract Overview

Contract Amount: $59,726,224 ($59.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-12-19

End Date: 2019-12-31

Contract Duration: 377 days

Daily Burn Rate: $158.4K/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 $59.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $59.7 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract falls under 'Other Aircraft Parts' manufacturing, a broad category. 4. Awarded as a delivery order, suggesting it's part of a larger framework.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks or competitive bids, it's hard to determine if the $59.7 million represents a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT COMPETED'), indicating no open competition. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition for a nearly $60 million contract suggests taxpayers may not be receiving the best possible value, as pricing may not have been driven down by market forces.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The specific use of 'BIG SAFARI' is unclear, impacting public understanding of the spending. Reliance on a single vendor for critical aircraft parts could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type

Positive Signals

Contract awarded to established company
Delivery order indicates potential for follow-on work

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for defense readiness, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair pricing and that competition was appropriately waived.

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 raises competition concerns.
Cost-plus contract type with fixed fee may not incentivize cost control.
Lack of transparency regarding 'BIG SAFARI' program details.
Potential for overpayment due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.7 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 $59.7 million.

What is the period of performance?

Start: 2018-12-19. End: 2019-12-31.

What specific aircraft parts or auxiliary equipment were procured under the 'BIG SAFARI' designation, and why was competition deemed unnecessary?

The 'BIG SAFARI' designation likely refers to a specific program or project within the Department of the Air Force, possibly related to intelligence, surveillance, or reconnaissance (ISR) aircraft modifications or support. The justification for not competing the award would typically involve factors like unique technical requirements, proprietary technology, or urgent operational needs that only L3Harris could meet within the required timeframe. Without further documentation, the exact nature of the procurement and the rationale for sole-sourcing remain unclear.

How does the Cost Plus Fixed Fee (CPFF) contract structure, combined with a sole-source award, impact the government's ability to control costs for this $59.7 million expenditure?

The CPFF structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. When combined with a sole-source award, this structure presents a significant risk of cost overruns. The government bears the risk of cost increases, while the fixed fee provides limited incentive for the contractor to control expenses. Without competitive pressure to offer the lowest price, the government has less leverage to negotiate favorable terms and ensure cost efficiency.

What are the potential risks associated with awarding a nearly $60 million contract for aircraft parts on a sole-source basis, particularly concerning long-term availability and technological obsolesc

Sole-sourcing a large contract like this can create dependency on a single supplier, potentially leading to supply chain vulnerabilities and reduced negotiating power for future procurements. It may also stifle innovation if alternative suppliers or technologies are not explored. Furthermore, if the 'BIG SAFARI' program involves specialized or proprietary components, the government could face challenges with long-term support, maintenance, and upgrades if the sole-source provider changes its product line or pricing strategy.

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: 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: $105,810,731

Exercised Options: $105,810,731

Current Obligation: $59,726,224

Actual Outlays: $1,125,427

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $12,281,260

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