DoD's $240M BIG SAFARI contract with L3Harris for aircraft parts faces limited competition

Contract Overview

Contract Amount: $240,159,601 ($240.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-03-28

End Date: 2026-12-30

Contract Duration: 2,834 days

Daily Burn Rate: $84.7K/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 $240.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $240M. 2. Sole-source award to L3Harris Technologies. 3. Long performance period extending to late 2026. 4. Focus on 'Other Aircraft Parts' manufacturing.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to reduce prices.

Taxpayer Impact: The lack of competition may result in inflated costs, meaning taxpayers are likely paying more than necessary for these aircraft parts.

Public Impact

Potential for higher costs due to sole-source award. Impacts readiness and modernization of Air Force assets. Limited visibility into the justification for sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus contract type
  • Long contract duration

Positive Signals

  • Supports critical Air Force mission needs
  • Established contractor with relevant expertise

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining and upgrading military aviation fleets. Benchmarks are difficult to establish due to the sole-source nature.

Small Business Impact

The contract data indicates that small businesses were not involved in this specific award, as it was a sole-source procurement with a large prime contractor.

Oversight & Accountability

The justification for a sole-source award needs thorough review to ensure it aligns with federal procurement regulations and serves the best interest of the government. Post-award oversight should focus on cost control and performance.

Related Government Programs

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

Risk Flags

  • Lack of competition
  • Potential for cost overruns (CPFF)
  • Long contract duration
  • Limited transparency on sole-source justification

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $240.2 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 $240.2 million.

What is the period of performance?

Start: 2019-03-28. End: 2026-12-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without detailed documentation, it's impossible to confirm if alternative competitive strategies were explored. Agencies must demonstrate that competition is not feasible or would not be in the government's best interest.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure value for money in this contract?

Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While it incentivizes cost control by fixing the profit, it can still lead to higher overall costs if the base costs are not well-managed or if scope creep occurs. Government oversight is critical to scrutinize costs.

What are the potential risks associated with a long-term, sole-source contract for critical aircraft parts, particularly regarding technological obsolescence or price escalation?

Long-term sole-source contracts risk technological obsolescence if the contractor does not innovate or if newer technologies emerge. Price escalation is also a concern, as the absence of competition removes market pressure to keep prices competitive over the contract's life. This can lead to the government paying above-market rates.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $241,519,925

Exercised Options: $241,519,925

Current Obligation: $240,159,601

Subaward Activity

Number of Subawards: 203

Total Subaward Amount: $139,681,297

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline

Start Date: 2019-03-28

Current End Date: 2026-12-30

Potential End Date: 2026-12-30 00:00:00

Last Modified: 2025-12-23

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