DoD's $27M Big Safari Contract Awarded to L3Harris for Aircraft Parts Amidst Limited Competition

Contract Overview

Contract Amount: $27,160,051 ($27.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-11-30

End Date: 2024-04-30

Contract Duration: 517 days

Daily Burn Rate: $52.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED 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 $27.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The Department of Defense awarded a $27.16 million contract for "Other Aircraft Parts and Auxiliary Equipment Manufacturing" to L3Harris Technologies. 2. The contract was awarded under a 'NOT COMPETED' basis, raising questions about price discovery and potential value. 3. This award falls under the 'Defense' sector, specifically supporting the Department of the Air Force. 4. The duration of the contract is 517 days, ending in April 2024.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $27.16 million price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for this $27.16 million contract may result in taxpayers paying more than necessary for the required aircraft parts and auxiliary equipment.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific nature of 'BIG SAFARI' and its components is not detailed, limiting public understanding of the expenditure. Reliance on a single source for critical aircraft parts could pose a supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Limited transparency on 'BIG SAFARI' program

Positive Signals

Award to established defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically manufacturing aircraft parts. Spending in this area is critical for national security, but competitive bidding is crucial to ensure cost-effectiveness.

Small Business Impact

The awardee, L3Harris Technologies, is a large corporation, and there is no indication that small businesses were involved in this specific contract action.

Oversight & Accountability

The 'NOT COMPETED' status suggests potential gaps in oversight regarding the justification for sole-sourcing and the subsequent price negotiation. Further review is needed to ensure accountability.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Supply chain vulnerability
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 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 $27.2 million.

What is the period of performance?

Start: 2022-11-30. End: 2024-04-30.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further details on the 'BIG SAFARI' program, it's unclear if these criteria were met. Robust price analysis and negotiation are critical in such cases to mitigate the risk of overpayment and ensure taxpayer funds are used efficiently.

What are the potential risks associated with relying on a single supplier for these 'Other Aircraft Parts and Auxiliary Equipment'?

Sole-sourcing can create significant supply chain risks, including potential disruptions if the supplier faces production issues, financial instability, or geopolitical challenges. It also reduces leverage for future negotiations and can lead to price escalations over time. Dependency on one vendor may also hinder the adoption of newer, potentially more cost-effective technologies.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact the overall value and effectiveness of this $27.16 million award?

CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While offering flexibility for uncertain project scopes, they can incentivize cost overruns if not tightly managed. The effectiveness hinges on stringent oversight of costs and the contractor's efficiency, as the government bears the cost risk, potentially diminishing overall value if costs escalate beyond initial projections.

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: COST PLUS FIXED FEE (U)

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: $27,160,051

Exercised Options: $27,160,051

Current Obligation: $27,160,051

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,222,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline