DoD's $37M 'BIG SAFARI' Contract Awarded to L3Harris for Aircraft Parts, Raising Competition Concerns

Contract Overview

Contract Amount: $37,033,776 ($37.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-03-22

End Date: 2024-08-12

Contract Duration: 1,239 days

Daily Burn Rate: $29.9K/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 $37.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $37 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a broad category. 4. Awarded by the Department of the Air Force, highlighting defense sector spending.

Value Assessment

Rating: questionable

The contract value of $37 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar contracts. Benchmarking is challenging due to the 'Other Aircraft Parts' category.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition suggests potential for inflated pricing, directly impacting taxpayer funds negatively.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to the lack of competitive bidding. The Department of Defense's reliance on sole-source contracts can stifle innovation and reduce market efficiency. Transparency in defense procurement is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
High contract value

Positive Signals

Specific agency award (Air Force)
Long contract duration (over 3 years)

Sector Analysis

This contract falls under the defense sector, specifically aircraft parts manufacturing. Defense spending often involves complex, specialized equipment where sole-source awards can sometimes be justified, but transparency is key.

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 in this specific award, which is common for large sole-source defense contracts.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is reasonable and that competition was appropriately considered or waived.

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
Potential for inflated pricing
Limited transparency on justification for sole-source
Difficulty in benchmarking costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 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 $37.0 million.

What is the period of performance?

Start: 2021-03-22. End: 2024-08-12.

What specific aircraft parts or systems does 'BIG SAFARI' encompass, and why was competition deemed unnecessary?

The specific components or systems under the 'BIG SAFARI' designation are not detailed in the provided data. A sole-source award typically implies that only one responsible source exists, or that the need arose so quickly that competition was impractical. Further investigation into the justification for this waiver of competition is needed to assess value.

What is the benchmark cost for similar aircraft parts or auxiliary equipment in the defense market?

Benchmarking is difficult without knowing the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment'. However, the $37 million value suggests significant components. The lack of competition prevents a direct comparison to market rates, raising concerns about potential overpayment compared to competitively sourced alternatives.

How effectively does the Department of the Air Force ensure fair pricing and value when awarding sole-source contracts?

The Department of the Air Force, like other DoD agencies, has regulations for sole-source procurements, often requiring justification and price analyses. However, the inherent lack of competition means that the 'effectiveness' of ensuring fair pricing relies heavily on internal controls and the contractor's willingness to provide fair terms, which is less robust than market-driven competition.

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: FIRM FIXED PRICE (J)

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: $37,033,776

Exercised Options: $37,033,776

Current Obligation: $37,033,776

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,549,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline