DoD's $28.5M BIG SAFARI contract awarded to L3Harris for aircraft parts shows limited competition

Contract Overview

Contract Amount: $28,489,334 ($28.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-01-08

End Date: 2022-02-08

Contract Duration: 396 days

Daily Burn Rate: $71.9K/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 $28.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $28.5 million represents a significant investment in specialized aircraft components. 2. Awarded to a single, large defense contractor, raising questions about competitive pricing and innovation. 3. The fixed-price contract structure aims to control costs, but the lack of competition may limit savings. 4. This contract falls under the 'Other Aircraft Parts' manufacturing sector, indicating a need for specific, non-standardized components. 5. The short duration of 396 days suggests a focused need rather than a long-term sustainment requirement. 6. The absence of small business involvement raises concerns about broader economic impact and set-aside utilization.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'BIG SAFARI' program and the exact nature of the aircraft parts. However, a $28.5 million award for a single delivery order suggests a substantial procurement. The firm fixed-price type indicates an expectation of cost certainty, but the lack of competition means there's no direct market comparison to assess if the price is optimal. Without knowing the unit costs or the specific components, it's difficult to definitively state if this represents excellent value for money.

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 among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or proprietary information required for the specific need. The lack of competition means that the Department of Defense did not benefit from a bidding process that could have potentially driven down prices or spurred innovation from a wider range of suppliers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no pressure on the contractor to offer the lowest possible price. This also limits opportunities for other businesses to compete for and win government contracts.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially specific aircraft platforms requiring these specialized parts. The services delivered involve the manufacturing and supply of critical aircraft components under the 'BIG SAFARI' program. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include employment opportunities at L3Harris and its supply chain, particularly in specialized manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for small businesses to participate.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if technology is proprietary.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established contractor like L3Harris suggests a degree of reliability.
Focus on specialized aircraft parts indicates support for critical defense capabilities.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a niche within the broader aerospace and defense industry. This contract likely addresses a specific need for components that are not mass-produced or are part of specialized, potentially classified, aircraft programs. The total market for such specialized parts can be difficult to quantify but is intrinsically linked to the overall defense spending on aviation platforms. Comparable spending benchmarks would depend heavily on the specific type and quantity of parts procured.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. This could mean missed opportunities for the small business ecosystem to contribute to critical defense needs and potentially grow their capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's existing procurement regulations and contract management processes. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature and the potential classification of the 'BIG SAFARI' program. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BIG SAFARI Program
Aircraft Parts Manufacturing
Defense Logistics Agency (DLA) Contracts
Air Force Sustainment Contracts

Risk Flags

Sole-source award
Lack of competition
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 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 $28.5 million.

What is the period of performance?

Start: 2021-01-08. End: 2022-02-08.

What is the specific nature of the 'BIG SAFARI' program and the aircraft parts being procured under this contract?

The 'BIG SAFARI' (Special Access For Guided Precision Employment) program is a U.S. Air Force initiative focused on rapidly developing and fielding specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. Contracts under this umbrella often involve unique modifications, sensor integration, or specialized components for aircraft. The specific aircraft parts procured under this $28.5 million contract are not publicly detailed, but they are categorized under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' This suggests they are not standard off-the-shelf components but rather custom-designed or highly specialized parts critical for the unique mission requirements of aircraft operating within the BIG SAFARI framework. The exact nature of these parts is likely sensitive due to the program's focus on advanced ISR capabilities.

How does the sole-source award impact the potential cost-effectiveness of this contract compared to a competitive bid?

A sole-source award, by definition, bypasses the competitive bidding process. This means that the government did not have the opportunity to solicit proposals from multiple vendors and compare their pricing, technical approaches, and overall value. In a competitive environment, vendors are incentivized to offer their best prices and most innovative solutions to win the contract. Without this pressure, there is a higher risk that the awarded price may not be the lowest achievable. While L3Harris is a reputable contractor, the absence of competition means that the government cannot be certain that taxpayers received the best possible value for the $28.5 million expenditure. The firm fixed-price nature offers some cost control, but the baseline price itself might be higher than it would have been in a competitive scenario.

What are the potential risks associated with awarding a significant contract like this on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated costs due to the lack of competitive pressure. Taxpayers may end up paying more than necessary for the goods or services. Another significant risk is the missed opportunity for innovation; a competitive process could have brought forward novel solutions or technologies from a wider range of suppliers. Furthermore, sole-source awards can create a perception of favoritism or a lack of transparency, potentially undermining public trust. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, making future procurements more difficult or expensive if the technology or expertise is proprietary. Finally, it limits opportunities for small businesses and new entrants to the defense market.

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

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with extensive experience in aerospace, defense, and intelligence systems, including ISR platforms. While specific details on their sole-source contract history for 'BIG SAFARI' are not readily available in the public domain, the company frequently holds contracts for complex defense systems and components. Their established presence and capabilities in areas relevant to ISR and aircraft modifications suggest they are a likely candidate for sole-source awards when specific expertise or technology is required. Analyzing their broader contract portfolio, including competitive awards, would provide a more comprehensive view of their performance and pricing trends across various contract types and programs.

How does this contract's value and duration compare to other procurements for aircraft parts or within the 'BIG SAFARI' program?

The $28.5 million value for a single delivery order with a 396-day duration is substantial for specialized aircraft parts. Without access to a comprehensive database of 'BIG SAFARI' contracts or detailed public spending data for niche aircraft components, direct comparisons are difficult. However, contracts for specialized defense systems and components can range widely in value. A $28.5 million award suggests a significant procurement, possibly for a critical upgrade, a limited production run, or a specific set of components for a unique platform. Shorter durations like this often indicate project-based needs rather than long-term sustainment, which might involve larger overall contract values spread over many years. Further analysis would require access to more granular contract data within the DoD.

What are the implications of this contract being awarded in Texas (TX)?

The award to L3Harris Technologies Integrated Systems L.P. in Texas signifies a direct economic impact on the state. This includes job creation or retention within the company and its local supply chain, particularly in specialized manufacturing and engineering roles. Texas has a significant aerospace and defense industry presence, and this contract contributes to that ecosystem. It also means that a portion of the federal defense budget is being channeled into the state's economy through this specific procurement. For the Air Force, having a key supplier located in Texas might offer logistical advantages or align with existing industrial base strategies within the region.

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 (UEI: 004203337)

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: $28,489,334

Exercised Options: $28,489,334

Current Obligation: $28,489,334

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline