DoD's $39.6M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $39,651,125 ($39.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-05-31

End Date: 2025-09-30

Contract Duration: 853 days

Daily Burn Rate: $46.5K/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 $39.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. High contract value of $39.6 million for aircraft parts. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Long performance period of 853 days suggests significant project scope. 4. No small business participation noted in this award.

Value Assessment

Rating: questionable

The contract value of $39.6 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar aircraft parts and auxiliary equipment.

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 potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these aircraft parts and auxiliary equipment.

Public Impact

Impacts Air Force readiness and operational capabilities. Potential for higher costs due to lack of competitive pricing. Limited visibility into the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of small business participation
  • Long contract duration

Positive Signals

  • Award to established defense contractor

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense operations. Spending benchmarks for sole-source awards in this area are often higher than for competitively sourced contracts.

Small Business Impact

This contract did not include any provisions for small business participation. This represents a missed opportunity to support small businesses within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and the pricing is fair. Accountability for the procurement process is key.

Related Government Programs

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

Risk Flags

  • Sole-source award lacks competition.
  • Potential for inflated pricing.
  • No small business participation.
  • Long contract duration may increase risk.
  • Limited transparency on justification.

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 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 $39.7 million.

What is the period of performance?

Start: 2023-05-31. End: 2025-09-30.

What was the specific justification for awarding this contract on a sole-source basis, and was a market research analysis conducted to confirm no other capable sources existed?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or proprietary technology. A thorough market research analysis should have been performed to confirm that only L3Harris Technologies could meet the specific requirements of the BIG SAFARI program, ensuring no viable alternatives were overlooked.

How does the $39.6 million price compare to industry benchmarks for similar aircraft parts and auxiliary equipment, especially considering the lack of competitive bidding?

Without competitive bids, a direct price comparison is challenging. However, the $39.6 million figure should be scrutinized against historical data for similar procurements and independent cost estimates. The absence of competition suggests a potential risk of overpayment, necessitating a detailed review of the cost breakdown and profit margins.

What are the potential risks associated with a long-term, sole-source contract for critical aircraft components, particularly regarding supply chain resilience and technological obsolescence?

Long-term sole-source contracts can create dependencies and reduce flexibility. Risks include potential price escalation over time, reduced incentive for the contractor to innovate, and vulnerability if the sole supplier faces disruptions. There's also a risk of technological obsolescence if the components are not updated to reflect advancements in aviation technology.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: $39,651,125

Exercised Options: $39,651,125

Current Obligation: $39,651,125

Subaward Activity

Number of Subawards: 51

Total Subaward Amount: $30,131,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline

Start Date: 2023-05-31

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 00:00:00

Last Modified: 2025-12-08

More Contracts from L3harris Technologies Integrated Systems L.P.

View all L3harris Technologies Integrated Systems L.P. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending