DoD's $34.8M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $34,850,493 ($34.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2022-10-31

Contract Duration: 760 days

Daily Burn Rate: $45.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO 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 $34.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $34.8 million awarded for aircraft parts. 2. Sole-source award to L3Harris Technologies raises questions about competition. 3. Potential risk associated with limited competition and lack of price discovery. 4. Spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $34.8 million for aircraft parts appears high given the 'Other Aircraft Parts' NAICS code. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely means taxpayers are not benefiting from the most cost-effective solution available.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to the lack of competitive bidding. The sole-source nature of this award could stifle innovation and prevent smaller businesses from participating. Lack of transparency in the procurement process raises concerns about accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract awarded to established company
Supports Department of the Air Force mission

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for defense readiness, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

The sole-source nature of this award, combined with the absence of a small business set-aside flag, suggests that small businesses were not considered or actively excluded from this procurement opportunity.

Oversight & Accountability

The sole-source award mechanism warrants further scrutiny to ensure proper justification and that all avenues for competition were explored. Oversight is needed to confirm the necessity and cost-effectiveness of this procurement.

Related Government Programs

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

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 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 $34.9 million.

What is the period of performance?

Start: 2020-10-01. End: 2022-10-31.

What specific justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. However, without detailed documentation, it's unclear if alternative competitive strategies were thoroughly explored or if the justification holds up under scrutiny. Further investigation into the specific circumstances is warranted.

How does the awarded price of $34.8 million compare to industry benchmarks for similar aircraft parts, especially considering the lack of competition?

Without competitive bids, it is challenging to establish a precise benchmark. However, the absence of competition often leads to prices above market value. A thorough cost analysis comparing the awarded price to publicly available data for similar parts, or to prices paid under previously competed contracts, would be necessary to assess potential overpayment and taxpayer impact.

What is the long-term strategic impact of awarding significant contracts like this on a sole-source basis to a single vendor for aircraft parts?

Sole-source awards can create vendor lock-in, potentially limiting future competition and innovation. Over time, this can lead to increased costs and reduced flexibility for the government. It may also hinder the development of a broader industrial base for critical components, making the supply chain more vulnerable. Strategic sourcing should prioritize competitive strategies to ensure long-term value and resilience.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $34,850,493

Exercised Options: $34,850,493

Current Obligation: $34,850,493

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $23,036,553

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline