DoD's $35.4M L3Harris contract for aircraft parts awarded via sole-source justification

Contract Overview

Contract Amount: $35,403,955 ($35.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-12-23

End Date: 2023-06-30

Contract Duration: 1,285 days

Daily Burn Rate: $27.6K/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 $35.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. Long performance period of over 3 years suggests a sustained need for these parts. 3. The contract's value is significant within the 'Other Aircraft Parts' manufacturing sector. 4. Sole-source award limits opportunities for market-driven price discovery. 5. Performance is managed by the Department of the Air Force, indicating a specific operational requirement. 6. The fixed-price contract type shifts some risk to the contractor. 7. Texas is the performance location, potentially impacting local economies and workforce.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without competitive bids. The $35.4 million awarded over approximately 3.5 years for 'Other Aircraft Parts' needs careful scrutiny. Without comparison to similar sole-source awards or open market pricing for equivalent parts, it's difficult to definitively assess value for money. The fixed-price nature provides some cost certainty, but the lack of competition means taxpayers may not be receiving the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and may result in higher costs for the government compared to a fully competed contract. The absence of multiple bids means there's no direct market pressure to drive down prices.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost efficiencies that typically arise from competitive bidding. This can lead to higher overall spending for the same goods or services.

Public Impact

The Department of the Air Force benefits from the acquisition of critical aircraft parts. The contract supports the operational readiness and maintenance of Air Force aircraft. Services are delivered to the Department of Defense, ensuring national security capabilities. The contract's performance in Texas may have implications for the regional aerospace workforce and supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source justification requires rigorous review to ensure necessity.
Long contract duration without competitive re-evaluation could mask inefficiencies.

Positive Signals

Fixed-price contract type provides cost predictability.
Award to an established contractor may ensure reliable delivery.
Performance in Texas could support domestic aerospace manufacturing.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. The total value of $35.4 million over its duration is substantial for this specific niche. The market for aircraft parts is often characterized by specialized manufacturing, long lead times, and significant regulatory requirements. Benchmarking this contract's value is difficult without knowing the specific parts procured, but it represents a significant investment by the Air Force in maintaining its fleet.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like L3Harris Technologies Integrated Systems L.P. suggests that the primary focus was on the prime contractor's capabilities rather than fostering small business participation through set-asides. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, it may undergo additional scrutiny from higher levels within the Department of Defense. Transparency is limited by the non-competitive nature, but contract performance, delivery schedules, and quality would be monitored. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Manufacturing
Defense Logistics
Air Force Procurement
Sole-Source Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competitive pressure.
Need for detailed justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 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 $35.4 million.

What is the period of performance?

Start: 2019-12-23. End: 2023-06-30.

What specific aircraft parts are being procured under this contract, and why were they deemed only available from L3Harris?

The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413). However, the specific parts are not detailed. The justification for a sole-source award typically rests on factors such as unique technical capabilities, proprietary technology, essential interchangeability with existing systems, or urgent and compelling circumstances where only one source can reasonably fulfill the requirement. Without the specific sole-source justification documentation, it's impossible to confirm the exact reasons why L3Harris was the only viable option for these particular parts. This information is crucial for assessing the validity of the sole-source award and ensuring taxpayer funds are used appropriately.

How does the $35.4 million contract value compare to historical spending on similar aircraft parts by the Air Force or other DoD branches?

Comparing the $35.4 million contract value requires access to historical spending data for similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) procurements by the Department of the Air Force and the broader Department of Defense. Without specific part identification or access to detailed procurement databases, a direct comparison is difficult. However, $35.4 million over approximately 3.5 years (1285 days) represents an average annual spend of roughly $10 million. This figure should be benchmarked against the typical cost of similar sole-source or competitively awarded contracts for specialized aircraft components. A higher-than-average spend without clear justification could indicate potential overpricing due to the lack of competition.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure L3Harris meets delivery schedules and quality standards?

For a contract of this nature, the Department of the Air Force would typically establish Key Performance Indicators (KPIs) focused on on-time delivery, quality acceptance rates, and adherence to technical specifications. Oversight mechanisms would likely include regular program management reviews, technical inspections of delivered parts, and performance reporting requirements mandated in the contract. Contract clauses would outline remedies for non-performance, such as liquidated damages or termination. The fixed-price nature of the contract incentivizes the contractor to meet these requirements to avoid financial penalties. However, the effectiveness of these mechanisms depends on the rigor of the Air Force's contract administration and surveillance.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly in supplying aircraft parts?

L3Harris Technologies Integrated Systems L.P. is a significant defense contractor with a substantial history of providing a wide range of products and services to the Department of Defense. Their portfolio often includes avionics, communication systems, electronic warfare, and integrated mission systems, which inherently involve aircraft components and support. To assess their track record specifically for 'Other Aircraft Parts,' one would need to examine their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and review previous contracts awarded to them for similar items. Generally, large defense contractors like L3Harris are expected to have established quality control processes and a capacity to meet demanding military specifications, but individual contract performance can vary.

Given the sole-source nature, what steps, if any, were taken to ensure fair and reasonable pricing?

When a sole-source contract is awarded, the government is obligated to ensure the price is fair and reasonable. This typically involves a price analysis conducted by the contracting officer. Methods for price analysis can include comparing the proposed price to historical prices paid for the same or similar items, analyzing the contractor's cost data (if required and submitted), or comparing prices to published catalog prices or other commercial price lists, adjusted for quantity and other factors. For complex or highly specialized items, a cost analysis might be necessary. The effectiveness of this process hinges on the thoroughness of the government's analysis and the availability of reliable pricing data for comparison.

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: 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: $35,403,955

Exercised Options: $35,403,955

Current Obligation: $35,403,955

Actual Outlays: $1,739,273

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $3,514,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline