DoD's $30.7M Big Safari contract to L3Harris Technologies awarded without competition

Contract Overview

Contract Amount: $30,749,541 ($30.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-07-31

End Date: 2024-09-30

Contract Duration: 1,522 days

Daily Burn Rate: $20.2K/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 $30.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to higher costs if not managed closely. 2. The contract was not competed, raising questions about potential price efficiencies and market-driven value. 3. A single bid was received, suggesting potential limitations in market engagement or contractor availability. 4. The contract duration is substantial, spanning over 1500 days, requiring ongoing oversight. 5. The contractor, L3Harris Technologies, is a major defense contractor with a significant presence in the sector. 6. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a broad category. 7. The contract's value is significant, representing a notable investment by the Department of Defense.

Value Assessment

Rating: questionable

Assessing the value for money is challenging without a competitive bidding process. The cost-plus-fixed-fee structure necessitates rigorous oversight to ensure costs remain reasonable and do not escalate unnecessarily. Benchmarking against similar contracts for specialized aircraft parts is difficult due to the unique nature of 'Big Safari' programs, which often involve classified or highly specialized requirements. The lack of competition means there's no direct market comparison to ascertain if the fixed fee is appropriate or if the overall cost is aligned with industry standards for comparable, albeit less specialized, work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The data indicates only one bid was received, which further reinforces the limited competition. This approach is often used for highly specialized or classified requirements where only a limited number of contractors possess the necessary expertise or security clearances. However, the lack of a competitive process limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Taxpayers may not be receiving the best possible value when contracts are not competed. The absence of multiple bids means there is no direct comparison to ensure the price is competitive, potentially leading to higher overall costs.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense, specifically the Air Force, requiring specialized aircraft parts and support. The services delivered are related to the manufacturing of aircraft parts and auxiliary equipment, crucial for maintaining and enhancing aviation capabilities. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. Workforce implications may include employment opportunities for skilled labor in manufacturing and engineering within L3Harris's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for cost overruns.
Cost-plus-fixed-fee contracts require diligent oversight to prevent scope creep and ensure efficiency.
The 'Big Safari' designation often implies unique or classified requirements, making public scrutiny and benchmarking difficult.
Limited information available on the specific nature of the 'Other Aircraft Parts' due to potential classification.

Positive Signals

L3Harris Technologies is an established defense contractor with a track record in complex aerospace programs.
The contract is awarded to a single, presumably capable, supplier for specialized needs.
The fixed-fee component of the contract provides some cost certainty for the government.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long product development cycles. Contracts like this, particularly those under 'Big Safari' programs, often involve highly specialized, sometimes classified, systems and components. The market for such niche capabilities is limited, often leading to sole-source or limited-competition awards. Comparable spending benchmarks are difficult to establish due to the unique nature of these programs, but the overall defense aerospace manufacturing sector represents billions in annual federal spending.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, L3Harris Technologies, is a large defense prime. While large primes often have subcontracting plans that include small businesses, the absence of a specific set-aside for this particular contract means direct opportunities for small businesses may be limited unless they are part of L3Harris's supply chain. The impact on the small business ecosystem is neutral to potentially negative if this work could have been performed by a smaller, specialized firm.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and cost-plus-fixed-fee structure, robust oversight is critical to monitor expenditures, ensure performance against the fixed fee, and prevent scope creep. Transparency may be limited due to the potential classified nature of 'Big Safari' programs. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Big Safari Program
Air Force Special Operations Command
Aerospace Manufacturing Contracts
Defense Logistics Agency
Specialized Aircraft Systems

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition
Potential for cost overruns
Classification of program details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 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 $30.7 million.

What is the period of performance?

Start: 2020-07-31. End: 2024-09-30.

What is the specific nature of the 'Big Safari' program and how does this contract contribute to its objectives?

The 'Big Safari' program is an Air Force initiative focused on rapidly developing and acquiring special operations and intelligence, surveillance, and reconnaissance (ISR) capabilities. It is known for its agility in responding to evolving threats and requirements, often involving modifications to existing platforms or the development of novel systems. This particular contract likely supports the sustainment, modification, or enhancement of specific aircraft or systems within the Big Safari portfolio. The exact nature of the 'Other Aircraft Parts and Auxiliary Equipment' is often classified or proprietary due to the sensitive operational requirements these systems fulfill, contributing to intelligence gathering or special mission execution.

Why was this contract awarded on a sole-source basis, and what are the implications for price competition?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's requirements. For 'Big Safari' programs, this often stems from highly specialized technical expertise, unique intellectual property, or classified system integration needs that only a specific contractor, like L3Harris Technologies, possesses. The implication for price competition is significant: without multiple bidders vying for the contract, the government loses the benefit of market forces driving down prices. While a fixed fee is negotiated, the absence of competitive pressure means the government relies heavily on its negotiation team and oversight to ensure the price is fair and reasonable, potentially leading to higher costs than if the contract had been competed.

How does the cost-plus-fixed-fee (CPFF) contract type influence risk and cost control for this $30.7M award?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost is not fixed upfront. For L3Harris, the fixed fee provides a guaranteed profit margin regardless of minor cost fluctuations, incentivizing them to complete the work. For the government, effective cost control hinges on rigorous oversight of allowable costs and diligent management of the contract's scope. If the scope expands or costs escalate beyond projections, the government bears the brunt, making robust program management and auditing crucial to prevent cost overruns and ensure value.

What is L3Harris Technologies' track record with similar 'Big Safari' or specialized aerospace contracts?

L3Harris Technologies, and its predecessor companies, have a long and extensive history supporting various U.S. military branches, including the Air Force, on complex aerospace and defense programs. They are a recognized leader in areas such as electronic warfare, communications, avionics, and mission systems, many of which are critical components of 'Big Safari' initiatives. Their track record includes numerous contracts for modifying aircraft, developing specialized payloads, and providing integrated systems for intelligence, surveillance, and reconnaissance (ISR) missions. While specific details of their 'Big Safari' involvement are often classified, their established position as a prime contractor in these domains suggests a strong capability to execute such specialized requirements.

Are there any historical spending patterns or trends associated with the 'Big Safari' program or similar specialized aircraft parts procurements?

Historical spending on the 'Big Safari' program and related specialized aircraft procurements generally shows a consistent, albeit often classified, investment by the Department of Defense. These programs are characterized by high unit costs due to the specialized nature, limited production runs, and advanced technology involved. Spending often fluctuates based on evolving threat assessments, technological advancements, and specific mission needs. While precise historical data for 'Big Safari' is not publicly available in aggregate, the overall trend in defense aerospace R&D and modification contracts indicates significant, long-term government commitment to maintaining and advancing specialized aviation capabilities, often involving sole-source or limited-competition awards for unique systems.

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: $30,818,486

Exercised Options: $30,818,486

Current Obligation: $30,749,541

Actual Outlays: $50,611

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $4,745,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline