DoD's $26.4M Big Safari contract awarded to L3Harris for aircraft parts shows limited competition

Contract Overview

Contract Amount: $26,449,191 ($26.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-12-17

End Date: 2024-08-23

Contract Duration: 980 days

Daily Burn Rate: $27.0K/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 $26.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $26.4 million represents a significant investment in specialized aircraft components. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price overruns. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as contractor profit is not directly tied to cost savings. 4. The duration of 980 days suggests a complex and potentially long-term need for these specialized parts. 5. The contract is categorized under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicating a niche but critical supply chain role. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support smaller enterprises.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific application within the 'Big Safari' program. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The Cost Plus Fixed Fee structure, while allowing for flexibility, can lead to costs exceeding initial estimates if not rigorously managed. Compared to similar sole-source awards for specialized aerospace components, the $26.4 million figure may be within a reasonable range, but the lack of transparency inherent in non-competitive procurements prevents a definitive value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and can potentially lead to higher costs for the government compared to a fully competed contract. The absence of competition means taxpayers do not benefit from the cost-saving pressures that arise from a bidding war.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price. Without competition, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other branches of the Department of Defense requiring specialized aircraft components. The services delivered involve the manufacturing and supply of critical aircraft parts, essential for maintaining the operational readiness of specific defense platforms. The geographic impact is primarily centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, but the ultimate impact is on national defense capabilities. Workforce implications include employment opportunities at L3Harris and its supply chain partners, particularly in specialized manufacturing roles within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Cost Plus Fixed Fee contract type can incentivize higher costs if not closely monitored.
Lack of transparency in pricing due to non-competitive nature.
Potential for scope creep in CPFF contracts if not managed effectively.

Positive Signals

Award to an established contractor with presumed expertise in aerospace manufacturing.
Contract supports critical defense needs for aircraft parts.
Long-term contract duration suggests a stable supply chain for essential components.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector, which is vital for maintaining the operational readiness of military aviation assets. The 'Big Safari' program itself is known for rapidly developing and fielding specialized intelligence, surveillance, and reconnaissance (ISR) capabilities, often requiring unique and custom-built components. Spending in this niche area is driven by evolving threats and technological advancements, making specialized manufacturing capabilities highly valuable.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to L3Harris Technologies Integrated Systems L.P., a large defense contractor, suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed. The absence of a specific set-aside indicates that the primary focus was on acquiring the necessary capabilities from a specific provider, rather than on fostering small business participation through direct contract allocation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Given it's a sole-source award, scrutiny on cost justification and performance monitoring would be crucial. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs remain reasonable and the fixed fee is earned appropriately.

Related Government Programs

Big Safari Program
Aircraft Parts Manufacturing
Defense Logistics Agency Contracts
Air Force Procurement
Specialized Aerospace Components

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 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 $26.4 million.

What is the period of performance?

Start: 2021-12-17. End: 2024-08-23.

What is the specific nature of the 'BIG SAFARI' program and why was this contract deemed sole-source?

The 'BIG SAFARI' (Special<seg_35> Aircraft Fielded-of-Battle-Intelligence-Gathering-and-Exploitation) program is an Air Force initiative focused on rapidly developing and fielding specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. These programs often involve unique, cutting-edge technologies and require highly specialized components or systems that may only be available from a limited number of sources, or even a single source with unique expertise. Contracts under Big Safari are frequently sole-source because the specific requirements are often classified, highly specialized, or tied to proprietary technology developed by a particular contractor. This particular contract for aircraft parts likely supports a specific Big Safari platform where L3Harris Technologies Integrated Systems L.P. possesses the sole capability or proprietary knowledge to produce the required components, thus justifying the sole-source award to meet urgent or unique operational needs.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and potential cost overruns for the government?

The Cost Plus Fixed Fee (CPFF) contract type is a cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, such as in research and development or complex system integration. For the government, the primary risk is that the final cost can exceed initial estimates, as the contractor is incentivized to incur costs to complete the work, but their profit (the fixed fee) remains constant regardless of the final cost. This contrasts with fixed-price contracts, where the contractor bears the risk of cost overruns and is incentivized to control costs to maximize profit. While CPFF offers flexibility, it requires stringent government oversight to manage costs effectively and prevent potential overruns. The fixed fee, however, does provide some predictability regarding the contractor's profit margin.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly on 'Big Safari' or similar specialized programs?

L3Harris Technologies Integrated Systems L.P. (and its predecessor companies) has a long-standing and extensive track record with the Department of Defense, particularly in providing advanced aerospace and defense technologies. They are a significant player in areas such as intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, communications, and avionics. L3Harris has been a key contractor on numerous 'Big Safari' programs, contributing to the development and sustainment of specialized aircraft and mission systems. Their history includes numerous sole-source and competitive awards across various defense agencies, demonstrating a deep understanding of military requirements and a capacity to deliver complex, high-technology solutions. While specific details of past 'Big Safari' contracts are often classified, L3Harris's consistent presence and significant contract awards indicate a strong performance record and a trusted relationship with the DoD for specialized aviation needs.

Are there any publicly available benchmarks or historical spending data for similar aircraft parts or 'Big Safari' components that could help assess the value of this $26.4 million award?

Publicly available benchmarks for highly specialized aircraft parts, especially those associated with classified or rapidly developed programs like 'Big Safari,' are extremely limited. The unique nature of these components, often custom-designed for specific platforms and missions, makes direct comparisons difficult. Historical spending data for 'Big Safari' itself is largely classified or aggregated in ways that obscure individual component costs. While general market data for aerospace manufacturing exists, it typically pertains to more standardized parts. Without access to the specific technical specifications, quantities, and the competitive landscape for these particular parts, it is challenging to establish a precise benchmark. The $26.4 million figure should be viewed in the context of specialized, potentially low-volume, high-complexity production rather than mass-market manufacturing. The lack of competition further complicates any attempt at external value assessment.

What are the potential risks associated with the 980-day duration of this contract, and how might they be mitigated?

A contract duration of 980 days (approximately 2.7 years) for specialized aircraft parts presents several potential risks. Firstly, technological obsolescence is a concern; the technology or the platform these parts support could evolve or be superseded during this period, potentially rendering the parts less relevant or requiring costly modifications. Secondly, economic risks, such as inflation or fluctuations in raw material costs, can impact the contractor's ability to maintain the fixed fee without compromising quality, especially if cost escalation clauses are not adequately addressed. Thirdly, program execution risks, including delays in design, testing, or integration, could extend the timeline further or increase costs. Mitigation strategies include robust program management by the government, clear performance metrics, regular reviews to track technological advancements, and potentially incorporating flexibility clauses for design changes or material cost adjustments within the contract terms. Proactive communication between the government and the contractor is essential to identify and address risks early.

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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,449,191

Exercised Options: $26,449,191

Current Obligation: $26,449,191

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,828,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline