DoD's $34.7M BIG SAFARI contract awarded to L3Harris for aircraft parts, raising competition concerns

Contract Overview

Contract Amount: $34,766,986 ($34.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-05-15

End Date: 2024-02-28

Contract Duration: 1,019 days

Daily Burn Rate: $34.1K/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 $34.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $34.7 million for aircraft parts. 2. Awarded to L3Harris Technologies, a major defense contractor. 3. Contract was not competed, raising questions about price discovery. 4. Focus on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $34.7 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense relies on specialized aircraft parts, impacting operational readiness. The award to a single large contractor could limit opportunities for smaller, innovative suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Award to established contractor
Supports critical defense needs

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities. Benchmarks are difficult to establish without competitive data.

Small Business Impact

The contract was not awarded to a small business, and the lack of competition may further limit opportunities for small businesses to enter the supply chain for these specialized parts.

Oversight & Accountability

The non-competitive nature of this award warrants further oversight to ensure fair pricing and value for taxpayer dollars. Accountability for the procurement decision is crucial.

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
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 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 $34.8 million.

What is the period of performance?

Start: 2021-05-15. End: 2024-02-28.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific details on the 'BIG SAFARI' program, it's presumed the Air Force identified a singular provider for these specific aircraft parts, necessitating a non-competitive procurement to meet operational demands.

What steps can be taken to ensure fair pricing given the lack of competition?

To ensure fair pricing on sole-source contracts, the government can conduct thorough cost and price analyses, negotiate aggressively, and seek independent cost estimates. Additionally, exploring future opportunities for competition, even on follow-on contracts or for similar items, is essential to drive down costs over time and maximize value.

How does this contract impact overall defense spending efficiency?

Sole-source contracts, while sometimes necessary, generally reduce overall spending efficiency due to the absence of competitive pressure. This specific $34.7 million award, if not rigorously justified and priced, could represent a less efficient use of defense funds compared to a competed contract, potentially diverting resources from other critical areas.

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

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: $34,766,986

Exercised Options: $34,766,986

Current Obligation: $34,766,986

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $31,760,187

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