DoD's $37.8M 'BIG SAFARI' Contract Awarded to L3Harris for Aircraft Parts Amidst Limited Competition

Contract Overview

Contract Amount: $37,825,112 ($37.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2024-12-30

Contract Duration: 1,187 days

Daily Burn Rate: $31.9K/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 $37.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value is $37.8 million, awarded to L3Harris Technologies. 2. Competition was limited, raising potential concerns about price discovery. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. The Department of the Air Force is the awarding agency.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar contracts for specialized aircraft parts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This approach may limit opportunities for competitive pricing and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of full and open competition could result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to limited competition on this $37.8 million contract. The Department of Defense relies on specialized parts, impacting operational readiness. L3Harris Technologies, a major defense contractor, is the sole awardee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of small business participation

Positive Signals

Long-term contract duration (1187 days)
Awarded to a known defense contractor

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities, with benchmarks often varying widely based on specialization and technological requirements.

Small Business Impact

The data indicates that small businesses were not involved in this contract award (sb: false). This suggests a lack of opportunity for small business participation in this specific procurement.

Oversight & Accountability

The 'BIG SAFARI' program itself implies a level of oversight for complex aerospace projects. However, the limited competition aspect warrants further scrutiny to ensure accountability and value for taxpayer money.

Related Government Programs

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

Risk Flags

Limited competition
Cost Plus Fixed Fee contract type
No small business participation
Potential for cost overruns
Lack of transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 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 $37.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2024-12-30.

What specific 'BIG SAFARI' requirements necessitate a limited competition approach for these aircraft parts, and how is value for money being ensured?

The 'BIG SAFARI' program often involves highly specialized or urgent requirements for intelligence, surveillance, and reconnaissance (ISR) platforms. A limited competition approach might be justified if only a few contractors possess the unique technical capabilities or existing infrastructure to meet these specific needs within the required timeframe. Value for money is typically ensured through rigorous negotiation of the fixed fee, detailed cost analysis, and ongoing performance monitoring by the contracting officer.

What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized aircraft parts, and how are they mitigated?

The primary risk with Cost Plus Fixed Fee (CPFF) contracts is that the contractor may have less incentive to control costs, as the government bears most of the expense. Mitigation strategies include robust government oversight, detailed cost accounting standards, clear definition of allowable costs, and negotiation of a fair fixed fee based on realistic cost estimates and the contractor's risk. Performance metrics and milestones are crucial for ensuring progress and controlling overall expenditure.

How does the lack of competition in this $37.8 million award impact the Department of Defense's ability to secure competitive pricing for future aircraft parts procurements?

A pattern of limited or sole-source awards for specific types of aircraft parts can reduce market competition over time. If potential competitors are consistently excluded, they may disinvest in the necessary capabilities or choose not to bid on future opportunities. This can lead to a less dynamic market, potentially higher prices, and reduced innovation, ultimately impacting the DoD's long-term procurement strategy and budget.

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: 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: $37,825,112

Exercised Options: $37,825,112

Current Obligation: $37,825,112

Subaward Activity

Number of Subawards: 119

Total Subaward Amount: $127,999,179

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