DoD's $42.8M 'BIG SAFARI' Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $42,841,101 ($42.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-05-14

End Date: 2024-09-30

Contract Duration: 1,600 days

Daily Burn Rate: $26.8K/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 $42.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $42.8 million awarded. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Contract duration extends to September 2024, indicating long-term need. 4. Focus on 'Other Aircraft Parts' suggests a specialized niche within defense. 5. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract value of $42.8 million for 'Other Aircraft Parts' appears substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized components.

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 in this sole-source award means taxpayers may not be receiving the best possible price for these aircraft parts.

Public Impact

Taxpayers may be overpaying for critical aircraft components due to the absence of competitive bidding. The long contract duration suggests a sustained need for these parts, highlighting the importance of ensuring fair pricing. Dependence on a single supplier could create supply chain vulnerabilities for the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

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

Positive Signals

Awarded to a known defense contractor
Clear contract end date
Firm fixed price contract type

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is critical for national security, but competitive procurement is essential to manage costs effectively.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large corporation, and there is no indication that small businesses were involved in this specific sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair value and that the justification for not competing the award is robust.

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 competition
Potential for overpayment
Limited transparency in pricing
Risk of supply chain disruption
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 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 $42.8 million.

What is the period of performance?

Start: 2020-05-14. End: 2024-09-30.

What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Without further details on the 'BIG SAFARI' program, it's difficult to ascertain the specific reasons. However, the absence of competition inherently limits the government's ability to explore alternative solutions and potentially secure better pricing or innovative approaches from a wider range of vendors.

How does the unit cost of these aircraft parts compare to similar components procured competitively by the DoD or other agencies?

Benchmarking the unit cost is challenging without knowing the exact specifications of the 'Other Aircraft Parts' procured under 'BIG SAFARI.' However, given the sole-source nature of this $42.8 million contract, there is a significant risk that the unit costs are higher than they would be if the contract had been competitively bid. A thorough cost analysis and comparison with market data for comparable parts would be necessary to determine the extent of any price premium.

What are the potential risks associated with relying on a single supplier for these critical aircraft components over a four-year period?

Relying on a single supplier like L3Harris for critical aircraft components over four years presents several risks. These include potential supply chain disruptions if the supplier faces production issues, limited leverage for the government to negotiate favorable terms or price reductions, and a lack of incentive for the supplier to innovate or improve efficiency. This sole-source arrangement could also hinder the development of alternative sources, potentially increasing long-term costs and reducing flexibility.

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: $42,841,101

Exercised Options: $42,841,101

Current Obligation: $42,841,101

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $34,001,960

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