DoD's $28.8M Big Safari Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $28,784,479 ($28.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-01-31

End Date: 2023-01-31

Contract Duration: 365 days

Daily Burn Rate: $78.9K/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 $28.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $28.8 million awarded for aircraft parts. 2. Sole awardee, L3Harris Technologies, raises questions about competitive pricing. 3. Lack of competition poses a potential risk to taxpayer value. 4. The contract falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $28.8 million for a one-year duration appears high given the lack of competition. Benchmarking against similar contracts for specialized aircraft parts is difficult without competitive data, but the absence of bids suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and negotiation leverage for the government, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these aircraft parts due to the absence of competitive pressure to lower prices.

Public Impact

Taxpayers may be overpaying for critical aircraft components due to a lack of competitive bidding. The Department of Defense relies on specialized parts, making transparency in sole-source awards crucial. Future procurement strategies should explore ways to introduce competition for similar specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Award to established contractor
Specific need for specialized parts

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were considered or subcontracted by the prime contractor.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable. The Department of Defense should document the justification for not competing this requirement thoroughly.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of bids.
Dependency on a single supplier.
Lack of transparency in price justification.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 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 $28.8 million.

What is the period of performance?

Start: 2022-01-31. End: 2023-01-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. The government should have conducted a price analysis, potentially using historical data or cost breakdowns from the contractor, to validate the reasonableness of the $28.8 million price. Without competitive bids, this analysis is critical for accountability.

What is the risk associated with relying on a single supplier for these critical aircraft parts, especially concerning future availability and potential price increases?

The primary risk is the government's dependence on L3Harris, potentially leading to price escalations in future contracts and limited options if the supplier faces production issues or decides to discontinue the product line. This lack of alternatives can impact operational readiness and increase long-term costs.

How does this sole-source award align with the Department of Defense's goals for promoting competition and achieving best value for taxpayer dollars?

Sole-source awards inherently conflict with the goal of promoting competition. While sometimes necessary for unique requirements, they necessitate rigorous justification and price validation to ensure taxpayers still receive the best possible value. This award highlights a potential area where competitive strategies might be explored for future procurements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Financial Breakdown

Contract Ceiling: $33,933,095

Exercised Options: $33,933,095

Current Obligation: $28,784,479

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,757,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline