DoD's $44.3M Big Safari contract awarded to L3Harris for aircraft parts, raising value and competition concerns

Contract Overview

Contract Amount: $44,307,764 ($44.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-01-31

End Date: 2024-01-31

Contract Duration: 365 days

Daily Burn Rate: $121.4K/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 $44.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $44.3 million warrants scrutiny, especially given the lack of competition. 2. Limited competition for this contract may have led to suboptimal pricing and reduced value for taxpayers. 3. The sole-source nature of this award presents a potential risk indicator for future procurements. 4. Performance context is limited due to the 'Other Aircraft Parts' classification, making direct benchmarking difficult. 5. This contract falls within the Defense sector, specifically supporting aircraft parts manufacturing. 6. The absence of small business involvement raises questions about broader economic impact. 7. The fixed-price contract type offers some cost certainty but doesn't mitigate competition concerns.

Value Assessment

Rating: questionable

Benchmarking the value of this $44.3 million contract is challenging without more specific details on the 'Other Aircraft Parts' procured. However, the lack of competition suggests that the government may not have achieved the best possible pricing. Compared to similar sole-source awards in the defense sector, the price could be inflated. Further analysis of the specific parts and their market value is needed to definitively assess value for money.

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 Integrated Systems L.P., was considered. This significantly limits the opportunity for price discovery and competitive negotiation. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, the lack of a competitive process here raises concerns about whether the government secured the most advantageous terms.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these aircraft parts. Without competing offers, there's no market validation of the price, potentially leading to less efficient use of public funds.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving critical aircraft parts. This contract supports the operational readiness and maintenance of Air Force aircraft. The geographic impact is concentrated in Texas, where L3Harris Technologies Integrated Systems L.P. is located. The contract likely supports specialized manufacturing jobs within the aerospace and defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for money.
Lack of transparency in the procurement process due to limited competition.
Potential for cost overruns if pricing is not rigorously justified.
No small business participation noted, potentially limiting broader economic benefits.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to an established defense contractor suggests potential for reliable delivery.
Contract supports critical defense needs for the Air Force.

Sector Analysis

This contract falls within the broader Defense Industrial Base, specifically the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. This sector is characterized by specialized production, often involving proprietary technologies and long-standing relationships between manufacturers and government agencies. The total market size for aircraft parts manufacturing is substantial, driven by military readiness and modernization programs. This specific contract, valued at $44.3 million, represents a significant but not exceptionally large award within this context, likely supporting a niche requirement for the Air Force's Big Safari program.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans involving small businesses. The sole-source nature of the award further limits opportunities for small business participation. This suggests that the primary focus was on acquiring specialized parts from a specific large contractor, potentially bypassing the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management systems. The Air Force Contracting Command would be responsible for monitoring performance and adherence to contract terms. Given the sole-source nature, scrutiny would likely focus on the justification for the award and the reasonableness of the price. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Big Safari Program
Air Force Aircraft Maintenance Contracts
Defense Industrial Base Contracts
Sole-Source Defense Procurements

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 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 $44.3 million.

What is the period of performance?

Start: 2023-01-31. End: 2024-01-31.

What specific aircraft parts are being procured under the "BIG SAFARI" designation, and why was a sole-source award necessary?

The "BIG SAFARI" designation typically refers to a specific Air Force program focused on rapid acquisition and modification of special operations and intelligence, surveillance, and reconnaissance (ISR) aircraft. The specific parts procured under this $44.3 million contract are not detailed in the provided data, but they are classified under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' A sole-source award is often necessary for such programs due to the highly specialized, unique, or classified nature of the required components, which may only be available from a single source or require extensive proprietary knowledge held by a specific contractor like L3Harris Technologies Integrated Systems L.P. The justification for the sole-source award would typically involve demonstrating that only one responsible source can provide the supplies or services, or that a compelling urgency precludes full and open competition.

How does the $44.3 million contract value compare to historical spending on similar 'Other Aircraft Parts' for the Air Force?

Comparing the $44.3 million contract value requires access to historical spending data for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' specifically for the Air Force, ideally within the context of the Big Safari program. Without that granular data, a direct comparison is difficult. However, $44.3 million is a substantial sum, suggesting either a large quantity of parts, highly specialized and expensive components, or a long-term supply agreement. If similar sole-source contracts for comparable parts have historically been awarded at lower values or through competitive bidding, this contract's value might be considered high. Conversely, if the parts are unique and critical to specialized aircraft, the price might be justified within the defense market.

What are the primary risks associated with awarding a $44.3 million contract on a sole-source basis?

The primary risks associated with awarding a $44.3 million contract on a sole-source basis include: 1. **Lack of Price Competition:** The government cannot leverage competitive bidding to ensure the lowest possible price, potentially leading to overpayment. 2. **Reduced Innovation:** Without competition, there is less incentive for the contractor to innovate or find more cost-effective solutions. 3. **Potential for Contractor Leverage:** The sole-source contractor may have significant leverage in negotiations, knowing the government has limited alternatives. 4. **Transparency Concerns:** Sole-source awards can be perceived as less transparent, potentially leading to public or congressional scrutiny regarding fairness and value. 5. **Dependency:** The government becomes dependent on a single supplier, which can be risky if that supplier faces financial difficulties or production issues.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly for aircraft parts?

L3Harris Technologies Integrated Systems L.P. (and its predecessor entities) has a significant and extensive track record as a major defense contractor for the Department of Defense. They are known for providing a wide range of products and services, including avionics, electronic warfare systems, communication systems, and integrated mission systems for various aircraft platforms. Their involvement in programs like Big Safari suggests a capability to deliver specialized solutions for complex aircraft modifications and support. While specific performance metrics for this particular $44.3 million contract are not yet available, L3Harris generally holds a strong position within the defense industrial base, often securing large contracts due to their technological expertise and established relationships with military branches.

What does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification imply about the nature of this contract?

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification (NAICS code 336413) is broad and encompasses a wide variety of components and systems used in aircraft that don't fit into more specific categories like engines or airframes. This could include items such as landing gear components, hydraulic systems, electrical harnesses, interior furnishings, specialized sensors, or modification kits. For this specific $44.3 million contract awarded to L3Harris under the 'BIG SAFARI' program, it likely signifies components essential for specialized aircraft modifications or upgrades, possibly related to intelligence gathering, special operations, or electronic warfare capabilities. The broadness of the classification underscores the need for more detailed information to fully assess the contract's scope and value.

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: $44,307,764

Exercised Options: $44,307,764

Current Obligation: $44,307,764

Actual Outlays: $11,324,042

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $7,088,315

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline