L3Harris awarded $35.3M for BIG SAFARI, raising questions about competition and value

Contract Overview

Contract Amount: $35,335,952 ($35.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-11-30

End Date: 2023-06-30

Contract Duration: 212 days

Daily Burn Rate: $166.7K/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 $35.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's value is substantial, requiring careful scrutiny of performance and pricing. 3. Limited competition raises concerns about whether the government secured the best possible value. 4. The duration of the contract (212 days) suggests a focused, short-term requirement. 5. The specific nature of 'BIG SAFARI' is not detailed, making direct performance benchmarking difficult. 6. The award to L3Harris Technologies suggests a reliance on established, specialized capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this $35.3 million contract is challenging due to the lack of competitive bidding and the specialized nature of the 'BIG SAFARI' program. Without comparable contract data or multiple bids, it's difficult to definitively assess if the pricing is optimal or if the government received the best value. The firm fixed-price structure provides some cost certainty, but the absence of competition means there's less pressure on the contractor to offer the most competitive rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, it's harder to ensure the most cost-effective solution was secured.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities within the Department of Defense requiring specialized aircraft parts and auxiliary equipment. The services delivered are related to 'BIG SAFARI,' which is understood to involve aircraft parts and auxiliary equipment manufacturing. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include employment opportunities within L3Harris's Texas facilities related to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of transparency regarding the 'BIG SAFARI' program's specific objectives hinders performance evaluation.
The contract's value, while not excessively high for defense, warrants scrutiny due to the non-competitive nature.

Positive Signals

L3Harris Technologies is an established defense contractor with a track record.
Firm fixed-price contract provides cost certainty for the government.
The contract addresses a specific need within the Air Force's operations.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the aerospace and defense industry. This contract falls within a segment that supports the operational readiness and sustainment of military aircraft. Spending in this area is often driven by specific program requirements and the need for specialized components that may not be readily available from a wide range of suppliers. Benchmarking requires comparison to similar sole-source awards for specialized aircraft components.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The award to a large prime contractor like L3Harris suggests that the primary focus is on their direct capabilities, and the impact on the broader small business ecosystem for this specific award is likely minimal unless subcontracting opportunities are pursued independently by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited by the non-competitive nature and the proprietary aspects of the 'BIG SAFARI' program. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Support
Aerospace Component Procurement
Military Aircraft Sustainment

Risk Flags

Sole-source award
Limited transparency on program details
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 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 $35.3 million.

What is the period of performance?

Start: 2022-11-30. End: 2023-06-30.

What is the specific nature and purpose of the 'BIG SAFARI' program?

The 'BIG SAFARI' program, as indicated by the contract data, pertains to 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' While the exact operational details and objectives of 'BIG SAFARI' are not publicly disclosed in this data, it is understood within the defense context to be a program managed by the Air Force Life Cycle Management Center (AFLCMC) that focuses on rapid acquisition and sustainment of critical aircraft systems and components. These programs often address urgent operational needs or provide specialized support for legacy or advanced aircraft, requiring unique technical expertise and rapid deployment of resources. The nature of the parts and equipment procured under 'BIG SAFARI' would be specific to the aircraft platforms or systems it supports, potentially including avionics, structural components, or specialized mission equipment.

Why was this contract awarded on a sole-source basis?

The contract was awarded on a sole-source basis ('ct': 'NOT COMPETED'), indicating that the Department of the Air Force determined that only one responsible source was capable of providing the required supplies or services. Common justifications for sole-source awards include the existence of unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed effort where only the original contractor can provide the necessary integration or sustainment. Without further details on the 'BIG SAFARI' program's specific requirements, the precise reason for the sole-source determination remains undisclosed but implies a lack of readily available alternatives or a critical dependency on L3Harris Technologies' specific expertise or intellectual property.

How does the $35.3 million award compare to historical spending on similar 'Other Aircraft Parts' contracts?

Comparing the $35.3 million award for 'BIG SAFARI' to historical spending on similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' contracts requires access to a broader dataset of defense procurements. However, $35.3 million is a significant sum for a contract with a duration of 212 days (approximately 7 months). In the context of defense contracting, especially for specialized components or systems, such values are not uncommon, particularly when dealing with sole-source awards for unique capabilities. To provide a precise benchmark, one would need to analyze the average value, duration, and competition levels of contracts within the same Product Service Code (PSC) or North American Industry Classification System (NAICS) code, adjusting for inflation and specific program complexities. The sole-source nature of this award suggests it might be higher than a competitively bid equivalent.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing and reduced value for money, as there is no competitive pressure to drive down costs. Taxpayers may not be receiving the most economical solution. Another risk is the potential for contractor complacency, as the lack of competition can reduce the incentive for the contractor to innovate or maintain the highest levels of efficiency. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single supplier, which can create vulnerabilities in the supply chain. Ensuring robust oversight and performance monitoring becomes even more critical in sole-source situations to mitigate these risks and verify that the government is receiving fair value.

What is L3Harris Technologies' track record with the Department of Defense, particularly for aircraft parts?

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with a substantial and long-standing relationship with the Department of Defense. The company has a broad portfolio encompassing aerospace, defense, and communications systems. Within the realm of aircraft parts and auxiliary equipment, L3Harris has a history of providing a wide range of components, systems integration, and sustainment services for various military platforms. Their track record includes numerous contracts for avionics, electronic warfare systems, communication systems, and structural components. While specific performance metrics for individual contracts are not detailed here, their continued success in securing large defense contracts, including sole-source awards, suggests a perceived capability and reliability by the DoD. However, like any large contractor, they have also faced scrutiny on specific contracts regarding cost and performance.

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: 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: $35,335,952

Exercised Options: $35,335,952

Current Obligation: $35,335,952

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,380,081

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