DoD's $33.9M Big Safari contract awarded to L3Harris for aircraft parts, raising questions about competition

Contract Overview

Contract Amount: $33,901,490 ($33.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-03-13

End Date: 2022-02-28

Contract Duration: 717 days

Daily Burn Rate: $47.3K/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 $33.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The contract's value of $33.9 million is significant for specialized aircraft parts. 3. L3Harris Technologies Integrated Systems L.P. is the sole awardee, indicating a lack of broader market engagement. 4. The contract duration of 717 days suggests a substantial, ongoing need for these parts. 5. The fixed-price nature of the contract aims to control costs, but the lack of competition is a concern. 6. Awarded by the Department of the Air Force, highlighting a specific defense sector need. 7. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a niche but critical area.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and specialized product category. Without competing bids, it's difficult to ascertain if the $33.9 million represents a fair market price. The fixed-price contract type suggests an attempt to cap costs, but the absence of competition means taxpayers may not be receiving the best possible value. Further analysis would require comparing the specific parts and services to similar sole-source procurements or industry benchmarks for specialized aerospace components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, meaning there was no open competition among potential vendors. This typically occurs when a specific capability or product is only available from a single source, or in urgent situations. The lack of competition means that multiple bidders were not solicited, and therefore, the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process. This limits the government's ability to ensure it is obtaining the most cost-effective solution.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract. This limits the efficient use of public funds for essential defense procurement.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives critical aircraft parts. The contract ensures the continued operation and maintenance of specific Air Force aircraft. The geographic impact is primarily within Texas, where L3Harris Integrated Systems L.P. is located. The contract supports specialized manufacturing jobs within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency and potential cost savings.
Dependence on a single contractor for critical aircraft parts poses a supply chain risk.

Positive Signals

Fixed-price contract type helps to define cost expectations.
Award to an established contractor like L3Harris suggests a degree of reliability.
Contract supports critical defense capabilities for the Air Force.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. This contract for specialized aircraft parts falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The market for such components is often specialized, with a limited number of qualified suppliers. Government spending in this area is crucial for maintaining military readiness, but the non-competitive nature of awards can be a point of concern regarding value for money compared to more commoditized defense goods.

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 suggests that opportunities for small businesses would likely be through subcontracts awarded by L3Harris, rather than direct government contracts. The absence of explicit small business set-aside provisions means direct opportunities for small businesses in this specific procurement are limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management regulations. The Air Force is responsible for ensuring contract compliance and performance. Inspector General (IG) offices within the DoD can investigate allegations of fraud, waste, or abuse related to any contract. Transparency is limited by the non-competitive nature of the award, making public scrutiny of the pricing and selection process more difficult.

Related Government Programs

Aircraft Parts and Auxiliary Equipment
Defense Logistics Agency Contracts
Air Force Sustainment Programs
L3Harris Technologies Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 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 $33.9 million.

What is the period of performance?

Start: 2020-03-13. End: 2022-02-28.

What is the track record of L3Harris Technologies Integrated Systems L.P. with the Department of Defense, particularly for similar sole-source contracts?

L3Harris Technologies Integrated Systems L.P. has a substantial history of contracting with the Department of Defense across various platforms and services. As a major defense contractor, they frequently receive awards for complex systems, components, and support services. While specific data on their sole-source contracts for 'Other Aircraft Parts' is not detailed here, their overall performance with the DoD is generally characterized by their ability to deliver sophisticated technological solutions. However, the non-competitive nature of this specific 'BIG SAFARI' award warrants scrutiny. Analysis of past performance on similar sole-source awards would be crucial to assess if they have consistently delivered value and met performance metrics without competitive pressure, and to understand the typical pricing structures applied in such scenarios.

How does the $33.9 million contract value compare to similar sole-source procurements for specialized aircraft parts within the DoD?

Direct comparison of the $33.9 million contract value to similar sole-source procurements for specialized aircraft parts is challenging without access to a comprehensive database of non-competitive awards and their specific technical scopes. However, for specialized components within the aerospace and defense sector, contract values can range significantly based on complexity, quantity, and technological requirements. A $33.9 million award for a 717-day duration suggests a substantial need for either a high volume of parts or highly complex, custom-manufactured components. Without competitive bidding, it is difficult to benchmark this price against what might have been achieved in an open market. Further investigation into the specific 'BIG SAFARI' program and the nature of the parts procured would be necessary to establish more precise value comparisons.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a contract of $33.9 million on a sole-source basis are related to cost, innovation, and accountability. Firstly, the lack of competition significantly reduces the government's leverage to negotiate the lowest possible price, potentially leading to overpayment and inefficient use of taxpayer funds. Secondly, without the pressure of competing bids, the contractor may have less incentive to innovate or to seek cost-saving efficiencies. Thirdly, transparency is diminished, making it harder for oversight bodies and the public to assess the fairness of the price and the necessity of the procurement. Finally, there's a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, potentially impacting future procurements and supply chain resilience.

What does the 'BIG SAFARI' designation imply about the nature of this contract and its importance to the Air Force?

The 'BIG SAFARI' designation typically refers to a specific type of Air Force program focused on rapid acquisition of "Special Projects" or "Special Operations Forces" capabilities. These programs are often characterized by their need for speed, flexibility, and the integration of cutting-edge technologies, sometimes in response to urgent operational requirements. Contracts under BIG SAFARI can involve a wide range of activities, from developing new systems to modifying existing platforms or acquiring specialized intelligence, surveillance, and reconnaissance (ISR) assets. The sole-source award for aircraft parts under this designation suggests these components are likely critical, highly specialized, and potentially tied to a unique or rapidly evolving mission requirement where competition was deemed impractical or detrimental to mission success.

How does the fixed-price contract type mitigate or exacerbate the risks of a sole-source award?

The fixed-price contract type (Firm Fixed Price - FFP) is intended to mitigate cost risks for the government by establishing a ceiling price for the work. Under an FFP contract, the contractor assumes the risk of cost overruns. This is generally a positive aspect, especially in sole-source situations, as it provides a degree of cost certainty. However, in a sole-source context, the 'fixed price' is negotiated without competitive pressure. Therefore, while the government knows the maximum it will pay, that maximum price might still be higher than it would be in a competitive environment. The FFP structure here helps define the financial boundaries but does not inherently guarantee the best value due to the lack of competition in setting that price.

What are the potential implications of this contract for the broader aerospace parts manufacturing market, particularly regarding competition?

This sole-source award for $33.9 million to L3Harris Technologies Integrated Systems L.P. has limited direct implications for the broader aerospace parts manufacturing market in terms of fostering competition. By not opening the contract for bids, the Air Force missed an opportunity to stimulate competition among potential suppliers. This can reinforce the market position of incumbent contractors and potentially discourage new entrants or smaller specialized firms from investing in capabilities that might otherwise be leveraged. While L3Harris is a significant player, the lack of competition means that other capable manufacturers were not given a chance to compete, potentially hindering market dynamism and price discovery for these specific types of aircraft parts.

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 (UEI: 004203337)

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: $33,901,490

Exercised Options: $33,901,490

Current Obligation: $33,901,490

Actual Outlays: $1,570,197

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline