DoD's BIG SAFARI contract awarded to L3Harris for $32.7M, lacking competition

Contract Overview

Contract Amount: $32,737,692 ($32.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-12-20

End Date: 2021-12-31

Contract Duration: 742 days

Daily Burn Rate: $44.1K/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 $32.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded to L3Harris Technologies for $32.7M. 2. No competition was identified for this award. 3. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. This is a Firm Fixed Price contract with a duration of 742 days.

Value Assessment

Rating: questionable

The contract value of $32.7M for aircraft parts is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value. Benchmarking against similar contracts for comparable parts is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in higher spending than if the contract had been competitively bid, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on specialized parts, potentially limiting competition. The long duration of the contract (742 days) suggests a need for sustained supply.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Firm Fixed Price contract type
Awarded to a known entity

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but often involves specialized components where competition can be challenging.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine potential small business participation.

Oversight & Accountability

The 'NOT COMPETED' status raises questions about the oversight process for this award. A review of the justification for not competing is warranted to ensure proper procedures were followed.

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 inflated pricing
Limited transparency
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 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 $32.7 million.

What is the period of performance?

Start: 2019-12-20. End: 2021-12-31.

What was the specific justification for not competing this contract, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to ascertain the specific justification, such as a critical need, proprietary technology, or lack of available sources. Without this documentation, it's impossible to fully assess the validity of the sole-source award and its impact on value for money.

How does the $32.7M contract value compare to industry benchmarks for similar aircraft parts, considering the lack of competition?

Without competitive bids, establishing a precise benchmark is challenging. However, a comparison with publicly available data on similar aircraft parts from other defense contracts or commercial markets could reveal significant price discrepancies. The absence of competition suggests a higher risk of the price being above market rates.

What is the potential long-term impact on the Air Force's budget and operational readiness due to this sole-source award?

A sole-source award, especially for a substantial amount like $32.7M, can strain the Air Force's budget if the price is inflated. This could divert funds from other critical areas. Furthermore, reliance on a single supplier might pose risks to long-term supply chain stability and operational readiness if issues arise with the contractor.

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: FIRM FIXED PRICE (J)

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: $36,085,890

Exercised Options: $36,085,890

Current Obligation: $32,737,692

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,158,389

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