DoD's $37.6M BIG SAFARI contract to L3Harris for aircraft parts awarded via sole-source justification

Contract Overview

Contract Amount: $37,614,812 ($37.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-10-15

End Date: 2025-05-31

Contract Duration: 1,689 days

Daily Burn Rate: $22.3K/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 $37.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. L3Harris Technologies is a major defense contractor, suggesting established capabilities. 3. The contract duration of nearly 7 years indicates a long-term need for these aircraft parts. 4. Awarded to a single source, limiting opportunities for smaller businesses to compete. 5. The 'Other Aircraft Parts' NAICS code suggests a broad category of components. 6. Texas is the place of performance, potentially benefiting the regional economy.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not closely managed. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition inherently reduces the government's leverage to negotiate favorable terms, potentially leading to a higher overall cost for the taxpayer. Further analysis would be needed to determine if the fixed fee adequately incentivizes efficiency.

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. The justification for this approach is not provided in the data, but typically sole-source awards occur when only one responsible source can provide the required supplies or services. This significantly limits the number of potential bidders and reduces the government's ability to solicit competitive pricing.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding. This can result in higher costs for the government and, consequently, for taxpayers.

Public Impact

The Department of the Air Force benefits from the acquisition of critical aircraft parts. The contract supports the operational readiness and maintenance of specific aircraft platforms. The place of performance in Texas may create or sustain jobs in the aerospace manufacturing sector. L3Harris Technologies, as the contractor, will receive significant revenue from this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Cost Plus Fixed Fee contract type can incentivize cost overruns.
Long contract duration increases exposure to potential performance issues.
Sole-source award limits opportunities for small businesses.

Positive Signals

L3Harris Technologies is an established defense contractor with proven capabilities.
The contract addresses a specific, long-term need for aircraft parts.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for aircraft components is substantial, driven by military readiness and commercial aviation needs. L3Harris Technologies is a significant player in this sector. Benchmarking this contract's value is challenging without competitive data, but it represents a notable investment in maintaining the Air Force's fleet.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement (sb: false) and it was not set aside for small businesses (ss: false). As a sole-source award to a large prime contractor, there are limited direct opportunities for small businesses to participate unless L3Harris actively subcontracts to them. The absence of a subcontracting plan requirement could mean fewer downstream opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Inspector General investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is limited due to the sole-source nature and lack of publicly available performance metrics.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Manufacturing
Defense Logistics
Air Force Procurement

Risk Flags

Sole-source award lacks competitive justification.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration may lead to obsolescence or price escalation.
Lack of small business subcontracting requirements limits ecosystem participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 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 $37.6 million.

What is the period of performance?

Start: 2020-10-15. End: 2025-05-31.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without the official justification document, it's impossible to ascertain the precise reasons. This lack of transparency is a concern, as it prevents an independent assessment of whether competition was truly impossible or if other factors influenced the decision. Understanding this justification is crucial for evaluating the value for money and the fairness of the procurement process.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar aircraft parts?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is uncertainty in the cost of performance. The government agrees to pay the contractor's actual costs plus a fixed fee representing profit. While this can be suitable for R&D or complex projects, it carries a risk of cost overruns if the contractor's costs escalate beyond initial estimates. In contrast, fixed-price contracts offer greater cost certainty for the government but may require a more defined scope. For standard aircraft parts, fixed-price contracts are often preferred to incentivize efficiency and cost control. The CPFF structure here suggests potential complexity or uncertainty in the parts being procured, but without more detail, it's difficult to definitively say if it's the optimal choice compared to alternatives.

What is L3Harris Technologies' track record with similar sole-source DoD contracts?

L3Harris Technologies is a major defense contractor with a substantial history of performing work for the Department of Defense across various platforms and services. While specific data on their sole-source contract track record isn't provided here, their extensive experience suggests a capacity to deliver complex aerospace components. However, the nature of sole-source awards means that performance and pricing cannot be directly compared to competitive outcomes. A deeper dive into L3Harris's contract history, particularly regarding CPFF awards and their cost performance, would be necessary to fully assess their track record in this specific context. Past performance reviews and contract close-out data would be valuable.

What are the potential risks associated with a nearly 7-year contract duration for aircraft parts?

A contract duration of nearly seven years (1689 days) for aircraft parts presents several potential risks. Firstly, technology obsolescence is a significant concern; aircraft and their components evolve rapidly, and parts procured today might be outdated or unsupported by the end of the contract term. Secondly, long-term contracts can lead to price escalation if not structured with appropriate economic price adjustment clauses, potentially increasing costs over time. Thirdly, maintaining consistent quality and performance over such an extended period requires robust oversight and contractor commitment. Finally, the long duration ties up significant government resources that could potentially be reallocated if needs change or better alternatives emerge. This extended commitment necessitates careful monitoring and potential renegotiation.

How does the $37.6 million total award value compare to historical spending on 'Other Aircraft Parts' by the Air Force?

The total award value of $37.6 million for this BIG SAFARI contract is a significant sum, but its context within historical spending on 'Other Aircraft Parts' requires further analysis. The NAICS code 336413 covers a broad range of aircraft parts and auxiliary equipment manufacturing. To assess if this amount is high or low, one would need to compare it against the Air Force's annual or multi-year spending on this NAICS code, as well as the number and value of other contracts awarded for similar parts. Without historical spending data for this specific category, it's difficult to benchmark this award. However, given the sole-source nature and the duration, it represents a substantial, long-term commitment to a specific supplier.

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: $37,614,812

Exercised Options: $37,614,812

Current Obligation: $37,614,812

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $23,385,264

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