DoD's $37.3M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $37,317,371 ($37.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $102.2K/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 $37.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. High contract value of $37.3M for aircraft parts. 2. Sole-source award to L3Harris raises competition concerns. 3. Potential for inflated costs due to lack of competitive bidding. 4. Spending concentrated within the Department of the Air Force.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without competitive benchmarks, it's difficult to assess if the $37.3M price is reasonable for the delivered aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to L3Harris. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had bid, impacting taxpayer value.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Air Force received specialized aircraft parts without exploring potentially more cost-effective options. Reliance on a single contractor for critical components could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Specific contract for aircraft parts
Awarded to established company

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Defense spending in this area is substantial, but competitive bidding is crucial for ensuring value for money.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large corporation, and there is no indication that small businesses were involved in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair pricing and that the procurement process was justified.

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
Cost-plus contract type
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 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 $37.3 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if the Air Force adequately explored competitive options or if specific circumstances necessitated bypassing the standard bidding process. This lack of transparency raises concerns about potential missed savings.

How does the Cost Plus Fixed Fee structure impact the final cost and contractor's incentive for efficiency in this specific contract?

Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor is incentivized to control costs to maximize profit. However, the overall cost is still subject to the actual expenses incurred, which can be less transparent than fixed-price contracts, potentially leading to higher final expenditures if cost overruns occur.

What is the long-term strategic implication of awarding significant contracts like this without competition for the Department of Defense's supply chain resilience?

Awarding significant contracts without competition can create dependency on a single supplier, potentially weakening supply chain resilience. If L3Harris faces production issues or decides to discontinue a product line, the DoD might struggle to find alternatives quickly. Diversifying suppliers through competition generally enhances flexibility and mitigates risks associated with single-source reliance.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other 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: 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: $38,026,288

Exercised Options: $38,026,288

Current Obligation: $37,317,371

Subaward Activity

Number of Subawards: 121

Total Subaward Amount: $13,979,002

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