DoD's BIG SAFARI Contract Awarded to L3Harris for $38.5M, Lacking Competition

Contract Overview

Contract Amount: $38,500,469 ($38.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-12-13

End Date: 2023-05-31

Contract Duration: 1,265 days

Daily Burn Rate: $30.4K/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 $38.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $38.5 million awarded. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Long contract duration of 1265 days suggests substantial project scope. 4. Focus on 'Other Aircraft Parts' indicates a specialized defense sector.

Value Assessment

Rating: questionable

The contract value of $38.5 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 awarded on a sole-source basis, meaning L3Harris was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition on this $38.5 million contract may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long duration could impact the Air Force's ability to adopt newer, potentially more cost-effective technologies. Dependence on a single supplier for critical aircraft parts could pose a supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Awarded to established contractor

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industry. Spending benchmarks for sole-source contracts in this area are often higher due to specialized requirements.

Small Business Impact

The contract data does not indicate any specific provisions or awards made to small businesses. The sole-source nature of the award further suggests limited opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense adequately justified the lack of competition and obtained the best possible value for taxpayers.

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 lacks transparency and competition.
Potential for inflated pricing due to no competitive pressure.
Long contract duration may lead to outdated technology.
Risk of supply chain disruption with a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 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 $38.5 million.

What is the period of performance?

Start: 2019-12-13. End: 2023-05-31.

What was the justification for awarding this contract on a sole-source basis, and was a thorough market analysis conducted to ensure no other capable vendors could fulfill the requirement?

The justification for a sole-source award typically involves specific circumstances like urgent needs, unique capabilities, or lack of market competition. A comprehensive market analysis is crucial to validate these claims and ensure taxpayers receive fair value. Without this information, it's difficult to assess the necessity and cost-effectiveness of this procurement method.

How does the $38.5 million price tag for these aircraft parts compare to industry benchmarks, especially considering the absence of competitive bidding?

Benchmarking the $38.5 million price is challenging without competitive data. Sole-source contracts often carry a premium. A detailed cost analysis comparing L3Harris's pricing to similar components procured competitively by other agencies or within the private sector would be necessary to determine if the price is reasonable and reflects fair market value.

What are the potential risks associated with a long-term, sole-source contract for aircraft parts, particularly concerning technological obsolescence and supply chain resilience?

Long-term sole-source contracts for aircraft parts carry risks of technological obsolescence, as the technology may advance beyond what the contract covers. It also creates a single point of failure in the supply chain, making the Air Force vulnerable to disruptions. This could necessitate costly upgrades or replacements later, negating any initial cost savings.

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: $38,500,469

Exercised Options: $38,500,469

Current Obligation: $38,500,469

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $11,524,948

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