DoD's BIG SAFARI Contract Awarded to L3Harris for $34.6M for Aircraft Parts

Contract Overview

Contract Amount: $34,636,261 ($34.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2021-02-08

Contract Duration: 496 days

Daily Burn Rate: $69.8K/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 $34.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $34.6 million is significant for specialized aircraft parts. 2. L3Harris Technologies is a major defense contractor, indicating a competitive landscape for such components. 3. The 'NOT COMPETED' award raises questions about price discovery and potential risks. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical niche within defense.

Value Assessment

Rating: questionable

The award value of $34.6 million for 496 days of performance needs further scrutiny. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar contracts for specialized aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices and reduced innovation as there is no market pressure to offer the best value.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts, as the government did not explore potentially lower-cost alternatives.

Public Impact

Impacts Air Force readiness and operational capabilities through the supply of critical aircraft parts. Potential for increased costs to taxpayers due to the non-competitive nature of the award. Highlights reliance on specific contractors for specialized defense equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of price competition
  • Potential for overpayment

Positive Signals

  • Award to established defense contractor
  • Supports critical Air Force operations

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining and upgrading military aviation assets. Spending in this niche can vary significantly based on defense priorities and technological advancements.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, not a small business. This contract does not appear to include specific provisions or set-asides for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for avoiding a competitive bidding process. Further review is needed to ensure the necessity and cost-effectiveness of this approach.

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 lacks transparency
  • Potential for inflated pricing
  • Limited opportunity for innovation
  • Risk of supply chain dependency
  • No small business participation noted

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 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 $34.6 million.

What is the period of performance?

Start: 2019-10-01. End: 2021-02-08.

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 access to the contract's justification documentation, it's impossible to confirm the specific reasons or if competitive strategies were explored. This lack of transparency raises concerns about potential missed opportunities for better pricing and innovation.

How does the per-unit cost of these aircraft parts compare to industry benchmarks or previous similar procurements?

Benchmarking the per-unit cost is challenging without detailed specifications and a competitive baseline. Given the sole-source nature, it's probable that the price was negotiated rather than determined by market forces. A thorough cost analysis by the agency would be necessary to validate its reasonableness against available data.

What is the long-term strategic impact of relying on a single source for these critical aircraft parts?

Long-term reliance on a single source can create vulnerabilities, including supply chain disruptions, price escalation, and reduced technological advancement. It also limits the government's leverage in future negotiations. Diversifying the supplier base or fostering competition where feasible is generally advisable for strategic components.

Industry Classification

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

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

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: $34,636,261

Exercised Options: $34,636,261

Current Obligation: $34,636,261

Actual Outlays: $9,016,698

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline

Start Date: 2019-10-01

Current End Date: 2021-02-08

Potential End Date: 2021-02-08 00:00:00

Last Modified: 2022-01-14

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