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: 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: $33,676,113
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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