DoD's $33.7M Big Safari Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $33,676,113 ($33.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-01-09

End Date: 2023-02-08

Contract Duration: 395 days

Daily Burn Rate: $85.3K/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 $33.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $33.7 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The award is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. The contract duration of 395 days suggests a substantial project or ongoing need.

Value Assessment

Rating: questionable

The contract's fixed price of $33.7 million for aircraft parts lacks a clear benchmark due to the absence of competitive bidding. Without comparison to other offers, assessing its value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to the absence of competitive bidding. The Department of Defense's reliance on sole-source contracts could stifle innovation in the defense supply chain. This award highlights a potential vulnerability in the procurement process for specialized aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpricing

Positive Signals

  • Firm fixed price contract
  • Specific delivery dates

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a crucial component of the defense industrial base. Spending in this area is often driven by specialized needs and long lead times.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable. Accountability for the procurement decision should be clearly established.

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 price gouging
  • Limited transparency
  • No small business participation

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 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 $33.7 million.

What is the period of performance?

Start: 2022-01-09. End: 2023-02-08.

What justification was provided for awarding this contract on a sole-source basis, and were alternative procurement methods considered?

The provided data indicates the contract was 'NOT COMPETED' and awarded as 'sole-source'. Typically, sole-source awards require a strong justification, such as a unique capability or urgent need, that cannot be met by multiple sources. Without this justification, it's unclear why competitive bidding was bypassed, potentially impacting cost-effectiveness and fairness.

How does the $33.7 million price compare to similar aircraft parts procured through competitive means by the DoD or other agencies?

Without competitive bids or publicly available benchmarks for these specific 'Other Aircraft Parts,' a direct price comparison is challenging. The absence of competition makes it difficult to ascertain if $33.7 million represents a fair market price. Further analysis would require access to detailed cost breakdowns or data from similar, competitively awarded contracts.

What is the potential impact of this sole-source award on the overall availability and cost of critical aircraft parts in the future?

Sole-source awards, especially for critical components, can reduce market pressure, potentially leading to sustained higher prices and discouraging new entrants or innovation. If this is a recurring need, the DoD might miss opportunities to secure better pricing and explore alternative suppliers through competitive processes, impacting long-term cost and supply chain resilience.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: $33,676,113

Exercised Options: $33,676,113

Current Obligation: $33,676,113

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

Start Date: 2022-01-09

Current End Date: 2023-02-08

Potential End Date: 2023-02-08 00:00:00

Last Modified: 2024-08-25

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