DoD's $719M Big Safari contract to L3Harris Technologies awarded for aircraft parts, with a significant duration

Contract Overview

Contract Amount: $71,866,765 ($71.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-10-02

End Date: 2026-03-31

Contract Duration: 2,006 days

Daily Burn Rate: $35.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $71.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess due to the Cost Plus Fixed Fee structure and lack of detailed cost breakdowns. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and increasing costs. 3. Risk indicators include the long contract duration and the Cost Plus Fixed Fee pricing model, which can incentivize cost overruns. 4. Performance context is limited as this is a delivery order under a larger contract, with specific performance metrics not detailed here. 5. Sector positioning places this contract within the broader defense manufacturing industry, specifically focusing on aircraft parts. 6. The contract's substantial value and long performance period suggest a critical role in supporting defense aviation capabilities.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed rigorously. Benchmarking is challenging without specific cost breakdowns or comparisons to similar sole-source awards for specialized aircraft parts. The total award value of $718,667,65 is substantial, but the value proposition depends heavily on the necessity and criticality of the 'BIG SAFARI' program's requirements and the contractor's efficiency in meeting them.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of competition means that potential cost savings that could arise from a competitive bidding process are unlikely to be realized, and the government does not benefit from the innovation and efficiency that multiple bidders might offer.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure. Without multiple bids, the government has less leverage to negotiate the lowest possible price for the required goods and services.

Public Impact

The primary beneficiaries are the Department of Defense and its aviation units, which will receive critical aircraft parts and support. Services delivered likely include the manufacturing, modification, and integration of specialized aircraft components and systems. The geographic impact is primarily centered around the contractor's facilities in Texas, but the ultimate impact is on national defense operations. Workforce implications include job creation and maintenance within the aerospace and defense manufacturing sector, particularly in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can lead to cost overruns if not closely monitored.
Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration increases the risk of scope creep and potential inefficiencies over time.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency and effectiveness.
Reliance on a single contractor for critical components could pose supply chain risks.

Positive Signals

The contract supports a critical national defense program ('BIG SAFARI'), indicating high strategic importance.
L3Harris Technologies is an established defense contractor with significant experience in aerospace and defense.
The long duration suggests a stable, long-term requirement, potentially leading to economies of scale for the contractor.
The CPFF structure allows for flexibility in adapting to evolving program needs, which can be crucial in defense.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product development cycles. This contract falls within the manufacturing segment, specifically focusing on aircraft parts and auxiliary equipment. The defense industry is a major component of the US economy, with substantial government spending directed towards maintaining technological superiority and operational readiness. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the 'BIG SAFARI' program, but contracts of this magnitude and duration are common for major defense platforms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, L3Harris Technologies, is a large business. While there is no direct set-aside, large defense contracts often involve subcontracting opportunities. However, without specific subcontracting plans or goals detailed in this award notice, the direct impact on the small business ecosystem is unclear. It is possible that L3Harris may engage small businesses as subcontractors, but this is not guaranteed by the contract terms presented.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to control costs and prevent overruns. Transparency is generally limited for sole-source defense contracts, especially those related to sensitive programs like 'BIG SAFARI'. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Manufacturing
Defense Procurement
Aerospace Components
Specialized Military Equipment
Cost-Plus Contracts
Sole-Source Acquisitions

Risk Flags

Sole-source award may limit cost savings.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration could lead to technological obsolescence.
Classified nature of the program limits transparency and public scrutiny.
Potential for contractor dependency due to specialized nature of work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.9 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $71.9 million.

What is the period of performance?

Start: 2020-10-02. End: 2026-03-31.

What is the specific nature and criticality of the 'BIG SAFARI' program that necessitated a sole-source award?

The 'BIG SAFARI' program is a classified initiative within the Department of the Air Force focused on providing rapid, specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. Its classified nature is the primary driver for the sole-source award, as disclosing specific technical requirements or the limited number of contractors capable of meeting them could compromise national security. The criticality stems from the need for advanced ISR platforms to support ongoing military operations and intelligence gathering, where delays or the use of less capable systems could have significant operational consequences. The long duration and substantial funding reflect the complex, long-term nature of developing and sustaining these advanced capabilities.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar defense procurements, and what are the associated risks?

The CPFF structure is common in defense contracts, particularly for research, development, and complex systems integration where costs are uncertain. It allows the contractor to recover all allowable costs plus a negotiated fixed fee representing profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government to change requirements but carries a higher risk of cost overruns, as the contractor is incentivized to incur costs to increase the base for their fee. Fixed-price contracts provide greater cost certainty for the government but are less adaptable to evolving needs. For specialized, R&D-intensive defense programs like 'BIG SAFARI,' CPFF is often deemed necessary due to the inherent uncertainties in development and integration, but it requires robust government oversight to manage costs effectively.

What is L3Harris Technologies' track record with similar sole-source, high-value defense contracts, particularly within classified programs?

L3Harris Technologies, formed through the merger of L3 Technologies and Harris Corporation, has a substantial history of performing on large, complex defense contracts, including those with classified elements. Both predecessor companies were deeply involved in intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, and advanced communications. They have frequently been awarded sole-source contracts for specialized capabilities where their unique expertise or existing platform integration was deemed essential. While specific details of their performance on classified programs are not publicly available, their consistent selection for such high-stakes, sole-source awards suggests a strong track record of meeting demanding technical and security requirements for the Department of Defense and intelligence agencies.

What are the potential long-term implications of this contract's duration (ending March 2026) on technological obsolescence and future modernization efforts?

The contract's duration, extending to March 2026, implies a significant commitment to the current technological baseline for the 'BIG SAFARI' program. While this provides stability and ensures continued support for existing capabilities, it also raises concerns about potential technological obsolescence. Defense systems often have shorter life cycles than the duration of their initial development and sustainment contracts. If the program does not incorporate mechanisms for rapid technology insertion or if future modernization efforts are delayed, the capabilities supported by this contract could become outdated relative to evolving threats or emerging technologies. This necessitates careful planning for future upgrades or replacements to maintain operational effectiveness.

How does the $718.6 million total award value compare to historical spending on the 'BIG SAFARI' program or similar ISR initiatives?

The $718.6 million total award value represents a significant investment, but without specific historical spending data for the 'BIG SAFARI' program or detailed breakdowns of its components, direct comparison is challenging. However, major ISR programs within the Department of Defense often involve multi-billion dollar investments over their lifecycles, encompassing development, procurement, and sustainment. This particular award, being a delivery order under a potentially larger contract vehicle, likely represents a portion of the program's total lifecycle cost. Compared to other large-scale ISR initiatives, this figure is substantial but not extraordinary, reflecting the complexity and strategic importance typically associated with advanced intelligence gathering platforms.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

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: $71,866,765

Exercised Options: $71,866,765

Current Obligation: $71,866,765

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,935,777

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