DoD's $164M Big Safari contract to L3Harris for aircraft parts shows limited competition and fair value

Contract Overview

Contract Amount: $164,078,526 ($164.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-03-25

End Date: 2022-10-31

Contract Duration: 950 days

Daily Burn Rate: $172.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $164.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $164 million over its period of performance suggests a significant investment in specialized aircraft components. 2. Limited competition for this contract may indicate a need for highly specialized capabilities or proprietary technology. 3. The firm fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 4. Performance context is crucial, as the delivery order structure implies ongoing needs and potential for follow-on work. 5. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, highlighting its role in supporting aviation readiness. 6. The contractor, L3Harris Technologies Integrated Systems L.P., is a major player in defense contracting, suggesting established capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the components or services provided. However, the $164 million total award over approximately 2.5 years suggests a substantial but not necessarily excessive price point for specialized aerospace manufacturing. The firm fixed-price nature implies that the contractor is expected to absorb cost overruns, which can be a positive indicator of value if the price was set appropriately based on realistic cost estimates. Further analysis would require comparing the unit costs of specific parts or services to market rates or similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that the procurement process did not involve open bidding. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgent needs cannot be met through competitive means. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed scenario.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from multiple bidders vying for a contract. This could result in a higher overall expenditure for the required goods or services.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, through the acquisition of critical aircraft parts and support equipment. The services delivered are related to the manufacturing and supply of specialized aircraft components, essential for maintaining and upgrading aviation assets. The geographic impact is centered in Texas, where the contractor's facility is located, potentially supporting local employment and economic activity. Workforce implications include the need for skilled manufacturing labor and technical expertise within L3Harris to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
The 'not available for competition' status requires careful justification to ensure it was truly the only viable procurement path.
Limited transparency into the specific components or services procured makes independent value assessment difficult.

Positive Signals

The firm fixed-price contract type transfers cost risk to the contractor.
L3Harris Technologies is an established defense contractor with a track record in complex manufacturing.
The contract supports critical Department of Defense aviation needs, contributing to national security.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical segment of the aerospace and defense industry. This sector is characterized by high technological barriers to entry, stringent quality control requirements, and significant government spending. The market size for aerospace parts manufacturing is substantial, driven by military readiness, commercial aviation, and space exploration. This specific contract likely supports specialized, high-value components that are not readily available from multiple suppliers, reflecting the niche nature of some defense procurement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large defense contractor, L3Harris Technologies, there are limited direct subcontracting opportunities for small businesses unless L3Harris voluntarily includes them in its supply chain. The absence of a small business set-aside means that the primary economic benefit flows to the large prime contractor, with potential indirect benefits to small businesses that are part of L3Harris's established supplier network.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, with potential involvement from the Air Force's Inspector General. Accountability measures are embedded in the firm fixed-price contract terms, which obligate the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award and the proprietary aspects often associated with specialized defense components. The contract's performance would be monitored through delivery schedules and quality inspections.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace Equipment Manufacturing
Defense Procurement
Air Force Sustainment Programs
Specialized Component Acquisition

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $164.1 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 $164.1 million.

What is the period of performance?

Start: 2020-03-25. End: 2022-10-31.

What specific aircraft parts or services are being procured under the "BIG SAFARI" contract?

The provided data does not specify the exact nature of the 'BIG SAFARI' contract beyond its classification under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' 'Big Safari' is an Air Force program often associated with rapid acquisition of special operations and intelligence, surveillance, and reconnaissance (ISR) aircraft and capabilities. Therefore, it is highly probable that this contract supports specialized modifications, components, or systems for these types of aircraft, rather than standard off-the-shelf parts. The limited competition and sole-source award suggest unique or highly customized requirements that L3Harris Technologies is uniquely positioned to fulfill, potentially involving advanced avionics, sensor integration, or structural modifications.

How does the $164 million award compare to typical spending for similar specialized aircraft components?

Comparing the $164 million award requires understanding the scope and complexity of the 'BIG SAFARI' program and the specific components or services involved. Contracts under the 'Big Safari' umbrella often involve rapid, tailored solutions for specialized aircraft, which can command higher prices due to unique engineering, integration, and testing requirements. While $164 million is a substantial sum, it may be considered fair for the acquisition of highly customized systems or significant modifications for a small fleet of specialized aircraft, especially when compared to the development costs of entirely new platforms. Without detailed specifications of the deliverables, a precise benchmark is difficult, but the firm fixed-price nature suggests a defined scope for this investment.

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

The primary risks associated with a sole-source contract of this magnitude include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or achieve cost efficiencies, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single source can create supply chain vulnerabilities if the contractor experiences production issues or financial instability. The government also loses the opportunity to explore alternative solutions or technologies that might have emerged from a competitive bidding process. Robust oversight and negotiation are critical to mitigate these risks.

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

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with a significant history of serving the Department of Defense across various platforms and capabilities. The company has extensive experience in areas such as aerospace systems, electronic warfare, communications, and intelligence, surveillance, and reconnaissance (ISR). Their involvement in programs like 'Big Safari' is consistent with their established expertise in providing specialized solutions for complex military requirements. While specific performance metrics for this particular contract are not detailed, L3Harris generally possesses a strong track record in delivering sophisticated defense technologies and integrated systems, often working on sole-source or limited-competition awards due to their specialized capabilities.

How has historical spending on the 'BIG SAFARI' program trended, and does this contract align with those trends?

The 'BIG SAFARI' program is known for its agile and responsive acquisition approach, often involving rapid prototyping and fielding of specialized capabilities. Historical spending within 'Big Safari' can be characterized by its variability, driven by evolving mission requirements and the unique nature of each project. Contracts under this umbrella can range significantly in value, from smaller, targeted modifications to larger, more comprehensive system integrations. This $164 million contract appears to represent a significant investment within the program, likely reflecting a substantial upgrade, a new capability development, or a multi-year supply of critical components for specialized platforms. Without access to historical spending data specific to 'BIG SAFARI' projects of similar scope, it's difficult to definitively state alignment, but the award size is consistent with the program's potential for high-value, specialized acquisitions.

What are the implications of the contract being awarded in Texas (TX)?

The contract being awarded to a facility in Texas (TX) has several implications. Firstly, it signifies economic activity and job creation within the state, particularly in the aerospace and defense manufacturing sector. L3Harris Technologies, as a large defense contractor, likely employs a skilled workforce in Texas, and this contract would sustain or potentially expand those roles. Secondly, it indicates the geographic concentration of critical defense manufacturing capabilities within the United States. For the Department of Defense, having key suppliers located in various states can be part of a broader strategy for industrial base resilience, although it also means that disruptions in one region could impact overall supply chains. The specific location in Texas may also be influenced by existing infrastructure, workforce availability, and state-level incentives.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

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: $164,337,018

Exercised Options: $164,337,018

Current Obligation: $164,078,526

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $115,888,943

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