DoD's $66.5M Big Safari contract awarded to L3Harris Technologies for aircraft parts shows limited competition

Contract Overview

Contract Amount: $66,550,671 ($66.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-12-31

End Date: 2023-11-30

Contract Duration: 699 days

Daily Burn Rate: $95.2K/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 $66.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of over $66 million represents a significant investment in specialized aircraft components. 2. Awarded to a single entity, this contract raises questions about the extent of market competition. 3. The duration of the contract, nearly two years, suggests a need for sustained supply of these parts. 4. The fixed-price nature of the contract aims to control costs, but the lack of competition may inflate the unit price. 5. Performance context is limited without specific details on the 'Big Safari' program's objectives. 6. The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, indicating specialized industrial support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'Big Safari' program and the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' services provided. The contract value of approximately $66.5 million over a period of nearly two years suggests a substantial procurement. However, the lack of competitive bidding means there is no direct market comparison to assess if the pricing is optimal. The fixed-price contract type offers some cost certainty, but the absence of multiple bids prevents a thorough value-for-money assessment against potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was considered. This approach is typically used when a specific capability or product is only available from a single source, or in cases of urgent need where competition is not feasible. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. It also means that the government did not explore potential alternative solutions or suppliers that might have offered better terms or innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price. This limits the government's negotiating power and potentially results in less efficient use of public funds.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving critical aircraft parts and auxiliary equipment. The 'Big Safari' program, which this contract supports, likely aims to enhance or maintain specific military aviation capabilities. The contract's impact is geographically concentrated in Texas, where L3Harris Technologies Integrated Systems L.P. is located. The contract supports jobs within the aerospace manufacturing sector, specifically in the production of specialized aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competitively bid contract.
Sole-source awards can reduce transparency and accountability in the procurement process.
Dependence on a single supplier could create risks if that supplier faces production issues or financial instability.

Positive Signals

The fixed-price contract type provides cost certainty for the government.
L3Harris Technologies is an established defense contractor, suggesting a degree of reliability.
The contract duration indicates a sustained need for the supplied parts, suggesting program stability.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the broader aerospace and defense industry. This sector provides specialized components, sub-assemblies, and support equipment essential for the operation and maintenance of aircraft. The market is often characterized by high barriers to entry due to technical expertise, regulatory compliance, and established relationships with prime contractors and government agencies. Spending in this area is directly tied to defense budgets and the operational tempo of military aviation fleets. Comparable spending benchmarks would typically involve analyzing other sole-source or limited-competition awards for similar specialized aircraft components within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the award to L3Harris Technologies, a large defense contractor, suggests that subcontracting opportunities for small businesses may be limited or dependent on L3Harris's internal subcontracting strategy. Without specific subcontracting plans or goals outlined in the award, the direct impact on the small business ecosystem is uncertain, though large prime contracts often involve some level of subcontracting to smaller firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified goods within agreed-upon terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Big Safari Program
Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.6 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 $66.6 million.

What is the period of performance?

Start: 2021-12-31. End: 2023-11-30.

What is the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured under the 'BIG SAFARI' program?

The provided data identifies the contract under the 'BIG SAFARI' program and categorizes it under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. However, the specific details of these parts are not elaborated. The 'Big Safari' program itself is known within the Department of the Air Force as a rapid acquisition initiative focused on providing specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. Therefore, the parts procured likely relate to modifications, upgrades, or sustainment of ISR aircraft platforms, potentially including specialized sensors, communication equipment, or structural components necessary for these unique mission sets. Without access to the contract's statement of work or associated documentation, the precise nature of the parts remains generalized.

How does the awarded price of $66.5 million compare to similar sole-source contracts for specialized aircraft parts?

Directly comparing the $66.5 million award to similar sole-source contracts for specialized aircraft parts is challenging without access to a comprehensive database of historical sole-source procurements with detailed specifications and pricing. Sole-source awards are inherently difficult to benchmark because they bypass the competitive process that typically establishes market-driven prices. Factors such as the uniqueness of the required parts, the specific technological requirements, the contractor's proprietary costs, and the urgency of the need all influence pricing. To conduct a robust comparison, one would need to identify contracts with similar technical scopes, quantities, and delivery timelines, ideally from the same or adjacent fiscal years, and then analyze their pricing structures, which is not feasible with the current data.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

Awarding a contract of $66.5 million on a sole-source basis carries several potential risks. Firstly, the primary risk is financial: the government may pay a higher price than it would have in a competitive environment due to the lack of price pressure from multiple bidders. This can lead to inefficient use of taxpayer funds. Secondly, there's a risk of reduced innovation, as the sole-source provider may have less incentive to develop novel solutions or improve efficiency when competition is absent. Thirdly, there's a dependency risk; the government becomes reliant on a single supplier, making it vulnerable to disruptions in that supplier's operations, such as production delays, quality issues, or even financial instability. Finally, a lack of competition can sometimes indicate potential market failures or barriers to entry that warrant further investigation.

What is L3Harris Technologies' track record with similar sole-source contracts within the Department of Defense?

L3Harris Technologies, and its predecessor companies, have a significant history of contracting with the Department of Defense across various platforms and services. While specific data on their sole-source contract track record for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is not detailed here, the company is a major defense contractor known for its capabilities in areas such as electronic warfare, communications, and integrated mission systems. Sole-source awards are not uncommon for large, specialized defense contractors when specific technological expertise or proprietary systems are involved. A deeper analysis would require reviewing historical contract awards databases (like FPDS or SAM.gov) to identify the frequency, value, and nature of sole-source contracts awarded to L3Harris and assess their performance history on those specific awards.

How does the duration of this contract (699 days) align with typical sustainment periods for specialized aircraft components?

A contract duration of 699 days, approximately 23 months, for specialized aircraft parts and auxiliary equipment is not unusual, particularly within the context of defense procurements. Sustainment periods for critical components often align with planned operational cycles, maintenance schedules, or specific program phases. For specialized equipment supporting programs like 'Big Safari,' which often involve unique or upgraded platforms, a duration of nearly two years allows for consistent supply, potential integration challenges to be addressed, and ensures availability during a defined operational period. This duration suggests a stable, ongoing requirement rather than a short-term or emergency need, providing a predictable supply chain for the supported aircraft.

What is the significance of the contract being awarded in Texas (st: TX, sn: TEXAS)?

The indication that the contract is associated with Texas (st: TX, sn: TEXAS) likely signifies the location of the performing facility or the primary business operations of the contractor, L3Harris Technologies Integrated Systems L.P., relevant to this specific award. Texas has a robust aerospace and defense industry, hosting numerous defense contractors, manufacturing facilities, and military installations. The presence of significant defense-related economic activity in the state means that contracts like this contribute to the local and state economy through job creation, investment, and supply chain activities. For the Department of Defense, awarding contracts to companies with facilities in key industrial hubs like Texas can leverage existing infrastructure and a skilled workforce.

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: $66,550,671

Exercised Options: $66,550,671

Current Obligation: $66,550,671

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $8,154,443

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