DoD's $69.4M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts Amidst Limited Competition

Contract Overview

Contract Amount: $69,366,053 ($69.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-11-01

End Date: 2023-10-31

Contract Duration: 1,094 days

Daily Burn Rate: $63.4K/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: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $69.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The Department of Defense awarded a significant contract valued at $69.4 million for aircraft parts. 2. L3Harris Technologies Integrated Systems L.P. is the sole contractor, raising questions about competition. 3. The contract's duration spans nearly three years, indicating a substantial need for these parts. 4. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector sees this as a notable award.

Value Assessment

Rating: fair

The contract's value of $69.4 million for aircraft parts appears substantial. Without specific unit cost data or benchmarks for similar 'Other Aircraft Parts' contracts, a precise pricing assessment is difficult. However, the lack of competition may have influenced the final price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.

Public Impact

Taxpayers may be paying a premium due to the lack of competitive bidding on this sole-source contract. The Department of the Air Force's reliance on a single supplier for critical aircraft parts could pose a supply chain risk. The long-term nature of the contract suggests ongoing demand for these specific aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for overpayment due to lack of competitive bidding.
Reliance on a single supplier could create supply chain vulnerabilities.

Positive Signals

Contract supports critical Department of Defense operations.
L3Harris is a known entity in the aerospace and defense sector.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness. Benchmarks for sole-source awards in this specific sub-sector are difficult to ascertain without more granular data.

Small Business Impact

The contract was awarded to L3Harris Technologies Integrated Systems L.P., a large corporation. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Documentation justifying the sole-source justification and the pricing negotiation process would be key areas for review.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.4 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 $69.4 million.

What is the period of performance?

Start: 2020-11-01. End: 2023-10-31.

What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without access to the specific contract file, it's impossible to detail the exact justification. However, agencies are expected to conduct market research and negotiate pricing rigorously even in sole-source situations to achieve fair and reasonable prices.

What are the potential risks associated with relying on a single supplier for critical aircraft parts over a nearly three-year period?

Relying on a single supplier for critical aircraft parts over an extended period introduces several risks. These include potential supply chain disruptions due to the supplier's internal issues, geopolitical events, or natural disasters. It also limits the government's leverage if the supplier increases prices or experiences quality control problems, as alternatives may not be readily available.

How does the $69.4 million contract value compare to industry benchmarks for similar aircraft parts, considering the sole-source nature of the award?

Directly comparing the $69.4 million contract value to industry benchmarks is challenging without specific details on the parts procured and their quantities. However, sole-source contracts inherently lack the price reductions typically seen in competitive bidding. Therefore, even if the price is deemed 'fair and reasonable' by the government, it is likely higher than what could have been achieved through a competitive process.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 7500 MAEHR RD, WACO, TX, 76705

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: $70,343,597

Exercised Options: $70,268,597

Current Obligation: $69,366,053

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,522,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862020G4050

IDV Type: BOA

Timeline