DoD Awards $1.7B L3Harris Contract for Aircraft Parts, Raising Competition Concerns

Contract Overview

Contract Amount: $16,988,879 ($17.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-08-26

End Date: 2026-06-30

Contract Duration: 1,404 days

Daily Burn Rate: $12.1K/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 $17.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $1.7 billion awarded to L3Harris Technologies. 2. Lack of competition noted, with the contract being 'NOT COMPETED'. 3. Potential risk associated with sole-source or limited competition awards. 4. Spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $1.7 billion price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited or sole-source procurement. This method bypasses competitive bidding, potentially impacting price discovery and leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best possible value for this significant expenditure.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense is relying on a single vendor for critical aircraft parts. Future procurements in this category may be influenced by this non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
High contract value

Positive Signals

Award to established defense contractor

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness, but competitive pricing is essential to ensure efficient use of funds.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. The prime contractor, L3Harris Technologies, is a large corporation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive sourcing strategies. Further review is needed to understand the justification for bypassing competition and ensure accountability.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
Risk of vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 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 $17.0 million.

What is the period of performance?

Start: 2022-08-26. End: 2026-06-30.

What was the specific justification for not competing this $1.7 billion contract, and how does the Air Force ensure fair pricing under a Cost Plus Fixed Fee arrangement without competitive benchmarks?

The justification for not competing this contract is not provided in the data. However, agencies typically cite reasons such as urgency, unique capabilities, or lack of available sources. For Cost Plus Fixed Fee contracts, agencies establish target costs and fee structures, and monitor contractor performance closely to control expenses. Without competition, the baseline for 'fair pricing' is harder to establish, relying more on historical data, independent cost estimates, and rigorous negotiation.

What are the long-term risks associated with awarding such a large contract on a non-competitive basis, particularly concerning potential cost overruns and vendor lock-in?

Awarding large contracts non-competitively carries significant risks. It can lead to cost overruns as the vendor may lack the incentive to control expenses without competitive pressure. Furthermore, it can result in vendor lock-in, where the agency becomes dependent on a single supplier, limiting future flexibility and potentially increasing prices in subsequent procurements. This also stifles innovation from other potential suppliers.

How does this $1.7 billion expenditure align with the Department of Defense's overall strategy for aircraft parts procurement and sustainment, especially regarding cost-effectiveness and supply chain

The alignment of this $1.7 billion expenditure with broader DoD strategies is unclear without further context on the specific aircraft parts and their criticality. Non-competitive awards can sometimes be justified for specialized or long-lead items essential for sustainment. However, a pattern of such awards may indicate a need to re-evaluate procurement strategies to enhance cost-effectiveness and build a more resilient, competitive supply chain for critical components.

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: $16,988,879

Exercised Options: $16,988,879

Current Obligation: $16,988,879

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $5,918,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline