DoD's $43.8M 'BIG SAFARI' Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition
Contract Overview
Contract Amount: $43,823,380 ($43.8M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2022-09-20
End Date: 2023-03-17
Contract Duration: 178 days
Daily Burn Rate: $246.2K/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 $43.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $43.8 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and reduced value. 3. The contract falls under 'Other Aircraft Parts' manufacturing, a critical defense sector. 4. Awarded by the Department of the Air Force, highlighting defense spending priorities.
Value Assessment
Rating: questionable
The contract value of $43.8 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft parts contracts.
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.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these aircraft parts, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential aircraft components due to the lack of competitive bidding. The Department of the Air Force's reliance on sole-source contracts could impact overall defense budget efficiency. This award highlights a potential area for increased oversight to ensure fair pricing in defense procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Critical defense procurement
- Specific vendor expertise may be required
Sector Analysis
This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital component of the aerospace and defense industry. Spending in this area is crucial for maintaining military readiness.
Small Business Impact
The awardee, L3Harris Technologies Integrated Systems L.P., is a large corporation. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price paid is justified and that future procurements explore competitive options where feasible.
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 price gouging
- Limited transparency in pricing justification
- No small business participation evident
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 $43.8 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 $43.8 million.
What is the period of performance?
Start: 2022-09-20. End: 2023-03-17.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's impossible to confirm the specific reason. However, standard government procedures require the procuring agency to conduct a price analysis, comparing the proposed price to historical data, other government contracts, or commercial prices, to ensure fairness and reasonableness.
What are the potential risks associated with awarding a $43.8 million contract without competition to L3Harris?
The primary risk is paying an inflated price due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it may disincentivize future competition if agencies consistently opt for sole-source awards, potentially limiting innovation and vendor diversity in the long run.
How does this sole-source award impact the overall effectiveness of the Department of the Air Force's procurement strategy?
Sole-source awards, while sometimes necessary, can reduce the overall effectiveness of a procurement strategy if they become the norm. They limit opportunities to leverage market competition for better pricing and innovative solutions. Over-reliance on them can signal potential inefficiencies or a lack of strategic planning to foster a competitive vendor landscape.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $43,823,380
Exercised Options: $43,823,380
Current Obligation: $43,823,380
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $65,538
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
Start Date: 2022-09-20
Current End Date: 2023-03-17
Potential End Date: 2023-03-17 00:00:00
Last Modified: 2023-03-06
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