DoD's $37.2M BIG SAFARI contract to L3Harris for aircraft parts awarded without competition

Contract Overview

Contract Amount: $37,245,889 ($37.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-12-17

End Date: 2025-04-10

Contract Duration: 1,210 days

Daily Burn Rate: $30.8K/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 $37.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value. 2. The contract duration of 1210 days suggests a long-term need for these aircraft parts. 3. L3Harris Technologies Integrated Systems L.P. is the sole awardee, indicating a potential lack of broader market engagement. 4. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a critical but potentially niche sector. 5. Fixed pricing suggests cost certainty but may not reflect the most competitive market rates. 6. The absence of small business set-asides or participation is noted.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money on this $37.2 million contract. The firm fixed-price structure provides cost certainty for the government, but the lack of competition means the government may not be benefiting from the lowest possible prices achievable in a more open market. Comparing this to similar sole-source awards for specialized aircraft parts would be necessary for a more precise assessment, but initial indicators suggest potential for overpayment due to the non-competitive nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement, or in situations where urgency or specific technical expertise is paramount. The lack of multiple bidders means there was no direct price comparison or negotiation against competing offers, which can limit the government's ability to secure the most advantageous pricing.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these aircraft parts due to the absence of competitive pressure. The government's negotiating position is weakened when only one vendor is considered.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving critical aircraft parts. This contract supports the operational readiness and maintenance of specific aircraft fleets. The geographic impact is concentrated in Texas, where L3Harris Technologies Integrated Systems L.P. is located. The contract likely supports specialized manufacturing jobs within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the non-competitive award process makes value assessment challenging.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long contract duration suggests a stable, long-term need for the supplied parts.
Award to an established entity (L3Harris) may indicate specialized capabilities required for the parts.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a vital component of the broader aerospace and defense industry. This contract falls under the manufacturing of specialized components essential for aircraft operation and maintenance. The total addressable market for such parts can be substantial, driven by military and commercial aviation needs. Benchmarking this contract's value would ideally involve comparing it to other sole-source or competitively awarded contracts for similar specialized aircraft components, considering factors like complexity, material, and volume.

Small Business Impact

This contract does not appear to include any specific small business set-asides, nor is there an indication of subcontracting goals for small businesses. The award to L3Harris Technologies Integrated Systems L.P., a large corporation, suggests that the primary focus was on meeting the technical requirements rather than fostering small business participation. This could mean missed opportunities for small businesses to contribute to the defense supply chain and potentially limit their growth within this specific contract's scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and procurement regulations. The Air Force Contracting Command would be responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace and Defense Procurement
Sole-Source Defense Contracts
Department of Defense Supply Chain Management

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.2 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 $37.2 million.

What is the period of performance?

Start: 2021-12-17. End: 2025-04-10.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense for similar aircraft parts contracts?

L3Harris Technologies Integrated Systems L.P. has a significant history of contracting with the Department of Defense across various platforms and services. While specific data for 'BIG SAFARI' and 'Other Aircraft Parts' as a sole-source award requires deeper analysis, the company is a major defense contractor known for its capabilities in aerospace systems, electronics, and integrated solutions. Reviewing their past performance on similar sole-source or competitively awarded contracts for aircraft components, particularly those requiring specialized manufacturing or integration, would provide context. This includes examining contract values, performance ratings, and any past issues or successes to gauge their reliability and pricing competitiveness in similar scenarios. Without direct comparison data for this specific award, it's assumed their extensive DoD experience is a factor in their selection.

How does the $37.2 million value of this contract compare to similar sole-source awards for aircraft parts?

Benchmarking the $37.2 million value of this sole-source contract against similar awards is challenging without access to a comprehensive database of non-competed contracts for comparable aircraft parts. Generally, sole-source awards are scrutinized more heavily for value due to the absence of competitive pressure. If this contract is for a high-volume or particularly complex set of parts, the value might be justifiable. However, if the parts are relatively standard or could have been sourced from multiple vendors, the price may be higher than what a competitive process would yield. A detailed cost analysis by the procuring agency, comparing proposed costs against historical data or independent cost estimates, would be crucial for a definitive value assessment. The duration of over three years also contributes to the total value.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $37.2 million contract on a sole-source basis include potential overpricing due to lack of competition, reduced innovation from a single supplier, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, potentially limiting future flexibility and negotiation power. Furthermore, without competitive pressure, the incentive for the contractor to optimize costs or improve efficiency might be diminished. Ensuring robust oversight and justification for the sole-source award is critical to mitigate these risks.

How effective is the 'BIG SAFARI' program in delivering necessary aircraft parts, and what is its historical spending pattern?

The 'BIG SAFARI' (Broad Area Ground Support and Aviation Readiness Initiative) program, managed by the Air Force Life Cycle Management Center (AFLCMC), aims to streamline and accelerate the acquisition of critical aviation systems and support capabilities. Its effectiveness is generally viewed positively for its agility in addressing urgent needs. Historical spending patterns under BIG SAFARI can vary significantly year-to-year, depending on the specific requirements and priorities of the Air Force. This particular contract represents a portion of the overall spending within the 'Other Aircraft Parts' category. Analyzing the total budget allocated to BIG SAFARI and its sub-programs over several fiscal years would provide a clearer picture of its scale and the government's commitment to supporting aviation readiness through such initiatives.

What are the implications of this contract being awarded to L3Harris Technologies Integrated Systems L.P. for the broader aerospace parts market?

Awarding this $37.2 million contract to L3Harris Technologies Integrated Systems L.P. on a sole-source basis has several implications for the broader aerospace parts market. Firstly, it reinforces L3Harris's position as a key supplier within the defense industrial base, particularly for specialized aircraft components. Secondly, it means that other potential suppliers, including small and medium-sized businesses that might offer competitive alternatives, are excluded from this specific opportunity. This can impact market dynamics by concentrating business with a large prime contractor and potentially limiting opportunities for diversification and innovation from smaller players. It also highlights the reliance on established, large-scale manufacturers for certain critical defense needs.

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: 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: $37,245,889

Exercised Options: $37,245,889

Current Obligation: $37,245,889

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,414,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline