DoD's $31.5M BIG SAFARI Contract Awarded to L3 Technologies Raises Questions on Competition and Value

Contract Overview

Contract Amount: $31,506,589 ($31.5M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-27

End Date: 2022-10-20

Contract Duration: 937 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to L3 TECHNOLOGIES, INC. for work described as: BIG SAFARI Key points: 1. Significant contract value of $31.5 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract's duration of 937 days suggests a long-term need, highlighting the importance of competitive sourcing. 4. The sector is Custom Computer Programming Services, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes a definitive pricing assessment difficult. Without benchmarks from similar competitively awarded contracts, it's hard to determine if $31.5 million represents fair value.

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 was no competitive pressure to drive down prices.

Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding. Limited visibility into the necessity and justification for a sole-source award. Potential for reduced innovation and technological advancement by not engaging a broader market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in justification for sole-source

Positive Signals

Contract awarded to a known entity (L3 Technologies)
Specific NAICS code identified

Sector Analysis

The Custom Computer Programming Services sector is vital for modern defense capabilities, encompassing software development, integration, and maintenance. Spending benchmarks in this area vary widely based on complexity and scope, but competitive awards are generally preferred to ensure cost-effectiveness.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the justification was sound and that the pricing is reasonable. Accountability for the decision not to compete is crucial.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive justification.
CPFF contract type increases cost risk without competition.
Potential for inflated pricing due to limited market engagement.
Lack of transparency regarding the 'BIG SAFARI' program's specific needs and vendor selection.
No indication of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to L3 TECHNOLOGIES, INC.. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

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 $31.5 million.

What is the period of performance?

Start: 2020-03-27. End: 2022-10-20.

What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm no other vendors could meet the requirements?

The provided data does not include the justification for the sole-source award. Typically, agencies must conduct thorough market research to determine if a sole-source procurement is truly necessary. This often involves assessing if only one vendor possesses unique capabilities or if urgent and compelling circumstances exist. Without this information, it's difficult to validate the procurement strategy.

How does the Cost Plus Fixed Fee (CPFF) structure, combined with the sole-source award, impact the government's ability to control costs and ensure value for money?

A CPFF contract allows the contractor to recover all allowable costs plus a fixed fee. When combined with a sole-source award, the government loses the primary mechanism for cost control: competition. The fixed fee provides some incentive for efficiency, but without competitive pressure, the risk of cost overruns and inflated pricing is significantly higher for the taxpayer.

What specific 'BIG SAFARI' capabilities does this contract support, and are these capabilities critical enough to warrant foregoing competition?

The 'BIG SAFARI' program is associated with the Air Force's intelligence, surveillance, and reconnaissance (ISR) capabilities, often involving rapid acquisition of specialized technologies. While such programs can require unique expertise, the justification for sole-sourcing should clearly articulate why no other vendor could fulfill these critical ISR needs, especially given the substantial $31.5 million value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: 1700 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,506,589

Exercised Options: $31,506,589

Current Obligation: $31,506,589

Actual Outlays: $4,441,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862019G4035

IDV Type: BOA

Timeline