DoD awards $25.9M for BIG SAFARI aircraft parts to L3Harris Technologies, raising concerns about competition
Contract Overview
Contract Amount: $25,916,320 ($25.9M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2020-02-26
End Date: 2022-09-30
Contract Duration: 947 days
Daily Burn Rate: $27.4K/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 $25.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $25.9 million awarded. 2. Sole contractor, L3Harris Technologies, raises competition concerns. 3. Contract duration of 947 days suggests a substantial project. 4. Awarded by the Department of the Air Force, indicating defense sector focus.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a definitive value assessment difficult without further data on cost drivers and profit margins. Benchmarking is challenging due to the specialized nature of 'Other Aircraft Parts'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $25.9 million award may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the sole-source award. Potential for reduced innovation and quality without competitive pressure. Dependence on a single supplier for critical aircraft components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Award to established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically for aircraft parts. Spending in this area is critical for national security but requires robust oversight to ensure cost-effectiveness, especially when awarded non-competitively.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could indicate a lack of outreach or a focus on large, established prime contractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing is reasonable. Transparency in cost reporting will be crucial for accountability.
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 limits competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of small business participation.
- Specialized nature of parts makes benchmarking difficult.
- Classified program adds transparency challenges.
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 $25.9 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 $25.9 million.
What is the period of performance?
Start: 2020-02-26. End: 2022-09-30.
What specific justification was provided for the sole-source award of this $25.9 million contract, and how does it align with federal procurement regulations for non-competitive bids?
Federal regulations typically require a compelling justification for sole-source awards, such as unique capabilities, urgent needs, or lack of market availability. The Department of Defense would need to document and approve this justification, demonstrating why competition was not feasible or advantageous for the BIG SAFARI program's specific aircraft parts.
How will the Department of Defense ensure cost control and value for money under this Cost Plus Fixed Fee contract, given the absence of competitive pressure?
Oversight mechanisms will be critical. This includes rigorous auditing of costs, regular performance reviews, and clear communication with L3Harris regarding expected outcomes and efficiency targets. The fixed fee component provides some cost certainty, but the variable cost component requires diligent monitoring to prevent overruns.
What is the strategic importance of the 'BIG SAFARI' program, and how does this contract contribute to its overall mission and effectiveness?
The 'BIG SAFARI' program is a classified initiative focused on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) platforms. This contract for specialized aircraft parts is crucial for maintaining and enhancing the operational readiness and capabilities of these unique assets, directly supporting critical national security missions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: $25,916,320
Exercised Options: $25,916,320
Current Obligation: $25,916,320
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,797,078
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862016G3027
IDV Type: BOA
Timeline
Start Date: 2020-02-26
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2022-04-08
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