DoD's $68.3M Big Safari contract awarded to L3Harris Technologies for aircraft parts shows limited competition

Contract Overview

Contract Amount: $68,286,255 ($68.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-12-16

End Date: 2020-12-31

Contract Duration: 381 days

Daily Burn Rate: $179.2K/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 $68.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $68.3 million represents a significant investment in specialized aircraft components. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price overruns and value for money. 3. The contract duration of 381 days suggests a focused, short-term need for these specific parts. 4. The primary contractor, L3Harris Technologies, is a major defense supplier, indicating established capabilities but also market concentration. 5. The absence of small business set-asides or subcontracting requirements may limit opportunities for smaller firms in this procurement. 6. The 'Other Aircraft Parts' classification points to a niche requirement within the broader aerospace and defense sector.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific application within the 'Big Safari' program. Without competitive bids, it's difficult to ascertain if the $68.3 million represents a fair market price. The fixed-price contract type offers some cost certainty, but the lack of competition prevents a robust comparison against alternative solutions or suppliers. Further analysis would require understanding the unique technical specifications and the availability of alternative providers in this specialized market.

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, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and potentially lead to higher costs for the government compared to a fully competed procurement. The absence of competition means taxpayers do not benefit from the cost-saving pressures that arise from a bidding war.

Taxpayer Impact: The sole-source award means taxpayers may not have received the best possible price for these aircraft parts. Without competition, there's less incentive for the contractor to offer the lowest cost, potentially leading to a higher overall expenditure.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities involved in the 'Big Safari' program, which focuses on rapid development and acquisition of special operations aircraft. The services delivered involve the provision of specialized aircraft parts and auxiliary equipment, crucial for maintaining and upgrading specific aircraft platforms. The geographic impact is primarily within the United States, supporting defense operations and potentially involving manufacturing and logistics within Texas, where the contractor is located. Workforce implications include support for skilled labor in aerospace manufacturing and engineering at L3Harris Technologies and its potential suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency in cost justification.
Potential for vendor lock-in due to specialized nature of parts.

Positive Signals

Award to an established defense contractor with proven capabilities.
Firm fixed-price contract provides cost certainty.
Contract supports a specific, potentially critical, defense program ('Big Safari').

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector, which caters to specialized needs beyond standard commercial aviation components. The 'Big Safari' program itself represents a unique approach within the defense sector, focusing on agile development and acquisition of niche aviation capabilities. Comparable spending benchmarks are difficult to establish due to the specialized nature of the 'Big Safari' program and the sole-source award.

Small Business Impact

This contract does not appear to include specific small business set-asides, nor is there explicit information regarding subcontracting requirements for small businesses. The sole-source nature of the award further limits the opportunity for small businesses to participate directly or indirectly. This suggests that the primary focus was on securing specialized capabilities from a large, established prime contractor, potentially bypassing the broader small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The firm fixed-price nature provides some level of cost control. Transparency is limited due to the sole-source award, making detailed public scrutiny of the pricing justification difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Big Safari Program
Special Operations Forces Support
Aircraft Component Procurement
Defense Logistics Agency Contracts

Risk Flags

Sole-source award
Lack of competition
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.3 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 $68.3 million.

What is the period of performance?

Start: 2019-12-16. End: 2020-12-31.

What is the 'Big Safari' program, and why was this contract awarded under it?

The 'Big Safari' program is an Air Force Materiel Command initiative focused on the rapid acquisition and development of special operations forces (SOF) aircraft and related systems. It aims to provide SOF with tailored, cutting-edge capabilities quickly. Contracts under 'Big Safari' are often characterized by unique requirements and may sometimes be awarded on a sole-source basis if a specific contractor possesses unique expertise or technology essential for a rapid deployment or a highly specialized modification. This particular contract likely supports the modification, integration, or sustainment of an aircraft platform within the 'Big Safari' portfolio, addressing a specific need that L3Harris Technologies was uniquely positioned to fulfill.

What are the risks associated with a sole-source award of this magnitude?

Sole-source awards, especially for contracts valued at $68.3 million, carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved in a competitive bidding process. This can result in less value for taxpayer money. Additionally, sole-source awards can reduce transparency, making it harder to scrutinize the contractor's pricing and cost justifications. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier for critical components or services, potentially limiting future flexibility and negotiation power. Ensuring robust oversight and justification for sole-source awards is crucial to mitigate these risks.

How does the firm fixed-price contract type benefit the government in this scenario?

A firm fixed-price (FFP) contract type is generally advantageous for the government, especially in situations where the scope of work is well-defined. Under an FFP contract, the contractor assumes most of the risk for cost overruns. This means L3Harris Technologies is obligated to deliver the specified aircraft parts for the agreed-upon price of $68.3 million, regardless of their actual costs incurred. This provides the government with cost certainty and predictability, making budgeting easier. While it doesn't guarantee the 'best' price due to the sole-source nature, it protects the government from unexpected cost increases that could occur under cost-reimbursement contracts.

What is L3Harris Technologies' track record with the Department of Defense?

L3Harris Technologies is a major defense contractor with a long and extensive history of providing a wide range of products and services to the Department of Defense (DoD) and other government agencies. They specialize in areas such as aerospace systems, communications, electronic warfare, and information technology. The company has a significant portfolio of existing contracts with the DoD, indicating a strong existing relationship and a proven ability to meet defense requirements. Their consistent presence and substantial contract awards suggest a reliable performance record, though like any large contractor, specific contract performance can vary.

Are there any comparable spending benchmarks for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' within the DoD?

Establishing precise spending benchmarks for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is challenging due to the highly specialized and often proprietary nature of these components, particularly within programs like 'Big Safari.' While the DoD procures vast quantities of aircraft parts, the 'auxiliary equipment' and 'other' classifications often refer to niche items tailored for specific platforms or mission requirements, rather than standardized parts. General benchmarks for aircraft parts procurement exist, but they may not accurately reflect the unique technical specifications, low-volume production runs, or specialized integration needs associated with this particular contract. The sole-source award further complicates direct comparison, as it bypasses the market forces that would typically establish a competitive benchmark.

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

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: $69,297,560

Exercised Options: $69,297,560

Current Obligation: $68,286,255

Actual Outlays: $5,943,486

Subaward Activity

Number of Subawards: 72

Total Subaward Amount: $10,418,873

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