DoD's $38.8M Big Safari contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $38,841,024 ($38.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-09-08

End Date: 2024-09-30

Contract Duration: 1,483 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $38.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential overpayment. 2. The contract's duration of nearly five years suggests a long-term need for these specialized aircraft parts. 3. L3Harris, a major defense contractor, is well-positioned to fulfill this requirement. 4. The lack of competition is a significant risk indicator for value for money. 5. Performance context is limited due to the sole-source nature and lack of comparative bids. 6. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to definitively assess the value for money. The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs, especially when oversight is not robust. Benchmarking against similar sole-source contracts for specialized aircraft parts would be necessary to determine if the $38.8 million price tag is reasonable. The absence of competition limits the ability to compare pricing and ensure taxpayers are receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when a compelling justification for other-than-full-and-open competition exists. The lack of multiple bidders means there was no opportunity for price negotiation or discovery through a competitive process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these aircraft parts due to the absence of competitive pressure. Without competing bids, the government lacks a strong basis to ensure the lowest possible price was achieved.

Public Impact

The primary beneficiaries are likely the Department of the Air Force, which will receive critical aircraft parts. The contract supports the operational readiness and maintenance of specific aircraft within the Air Force's fleet. The geographic impact is primarily within Texas, where L3Harris is located, potentially supporting local jobs and the defense industrial base. Workforce implications include the employment of skilled labor in manufacturing and engineering roles at L3Harris.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs.
Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Lack of transparency in the procurement process due to no-bid award.
Potential for contractor to leverage unique position for favorable terms.
Limited public data on the specific aircraft parts and their necessity.

Positive Signals

Award to an established defense contractor (L3Harris) suggests capability to meet requirements.
Contract duration indicates a sustained need, potentially for critical platforms.
The 'Big Safari' program is known for rapid acquisition of specialized capabilities.
Texas location may leverage existing defense industrial base infrastructure.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. The market for specialized aircraft components is often characterized by high barriers to entry, proprietary technology, and a limited number of qualified suppliers. The 'Big Safari' program, managed by the Air Force, is designed to rapidly acquire and field highly specialized capabilities, often involving unique or cutting-edge technologies. Spending in this area is critical for maintaining aging fleets and developing new aerial platforms, with comparable spending often driven by specific platform needs and technological advancements.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. The sole-source nature of the award to a large prime contractor like L3Harris suggests that small businesses are unlikely to be direct beneficiaries of this specific contract, unless they are part of L3Harris's supply chain. Further investigation would be needed to determine if L3Harris has any subcontracting plans that would involve small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Department of the Air Force. Given the Cost Plus Fixed Fee (CPFF) structure, robust oversight is crucial to monitor costs, ensure efficiency, and prevent potential overruns. Accountability measures would involve contract performance reviews and audits. Transparency is limited due to the sole-source award, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Aircraft Procurement
Defense Logistics Agency (DLA) Aviation
Special Operations Forces (SOF) Support Contracts
Aerospace Parts Manufacturing Contracts

Risk Flags

Sole Source Award
Cost Plus Fixed Fee Contract Type
Lack of Competition
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 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 $38.8 million.

What is the period of performance?

Start: 2020-09-08. End: 2024-09-30.

What specific aircraft platforms or systems does the 'BIG SAFARI' program, and this contract specifically, support?

The 'BIG SAFARI' program is an Air Force initiative focused on rapidly acquiring and fielding highly specialized capabilities, often for intelligence, surveillance, reconnaissance (ISR), and special operations platforms. While the specific aircraft platforms or systems supported by this $38.8 million contract awarded to L3Harris are not detailed in the provided data, such contracts typically involve components for advanced aircraft, modifications, or specialized mission equipment. Given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, it's likely related to components for existing or modified aircraft rather than entirely new platforms. Further details would require access to classified or more granular contract documentation.

What is L3Harris Technologies' track record with the 'BIG SAFARI' program and similar sole-source contracts?

L3Harris Technologies is a major defense contractor with extensive experience supporting various Air Force programs, including those under the 'BIG SAFARI' umbrella. They have a history of providing complex systems, avionics, and specialized equipment for a range of military aircraft. Their track record with sole-source contracts is significant, as large defense primes often secure such awards due to unique capabilities or existing platform integration. While specific performance metrics for this contract are not public, L3Harris's overall standing as a key defense supplier suggests a capability to meet demanding requirements. However, the reliance on sole-source awards for such a substantial amount warrants scrutiny regarding competitive alternatives and cost-effectiveness over time.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for acquiring aircraft parts, and what are the associated risks?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This type is often used when the scope of work is not precisely defined or involves research and development. Compared to fixed-price contracts, CPFF offers less cost certainty for the government, as the final price depends on actual costs incurred. The primary risk is that the contractor may have less incentive to control costs, potentially leading to higher expenditures than anticipated. For acquiring aircraft parts, fixed-price contracts are generally preferred for well-defined requirements to ensure better price predictability. The use of CPFF here suggests a level of uncertainty or complexity in the parts or their integration, necessitating close government oversight to manage costs effectively and ensure value.

What is the historical spending trend for 'BIG SAFARI' contracts or similar aircraft parts procurements by the Department of Defense?

Historical spending on the 'BIG SAFARI' program and similar specialized aircraft parts procurements by the Department of Defense has been substantial and often characterized by rapid acquisition cycles and unique technological requirements. While specific aggregate figures for 'BIG SAFARI' are not readily available in the public domain due to the program's nature, the overall DoD budget for aircraft procurement, modification, and sustainment runs into tens of billions of dollars annually. Contracts for specialized parts, especially those involving sole-source awards, can range from millions to hundreds of millions of dollars. Spending trends are influenced by geopolitical factors, modernization efforts, platform sustainment needs, and the introduction of new technologies. The DoD's reliance on a few key large contractors for these specialized needs often leads to significant, recurring contract awards.

Are there any publicly available benchmarks or data points that can help assess the reasonableness of the $38.8 million award value for these aircraft parts?

Assessing the reasonableness of the $38.8 million award value for these aircraft parts is challenging without more specific data, particularly given the sole-source nature of the contract. Publicly available benchmarks for highly specialized, proprietary aircraft components are scarce. Typically, value assessment would involve comparing this contract to similar awards for the same or comparable parts, analyzing the contractor's cost breakdown (if available), and benchmarking against industry standards for similar manufacturing processes. However, sole-source awards inherently limit direct price comparisons. The 'BIG SAFARI' program's focus on unique capabilities means off-the-shelf pricing benchmarks may not apply. A thorough analysis would require access to historical pricing data for L3Harris or competitors on similar sole-source contracts, or detailed cost audits.

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: COST PLUS FIXED FEE (U)

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: $38,841,024

Exercised Options: $38,841,024

Current Obligation: $38,841,024

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $26,103,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline