DoD's $465M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts, Raising Competition Concerns

Contract Overview

Contract Amount: $46,534,390 ($46.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-05-26

End Date: 2026-10-31

Contract Duration: 1,619 days

Daily Burn Rate: $28.7K/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 $46.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $465.34M awarded to L3Harris. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. Long duration (2022-2026) suggests a sustained need for these parts.

Value Assessment

Rating: questionable

The contract value of $465.34M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was 'NOT COMPETED', indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition on a contract of this magnitude could result in millions of taxpayer dollars being spent unnecessarily.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices for years. Dependence on a single supplier for critical aircraft parts could pose supply chain risks. Lack of transparency in the procurement process can erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Long contract duration

Positive Signals

Awarded to a known defense contractor
Supports critical defense needs

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is often characterized by complex supply chains and specialized requirements, but competitive bidding is still crucial for cost efficiency.

Small Business Impact

The contract was awarded to L3Harris Technologies Integrated Systems L.P., a large corporation. There is no indication that small businesses were involved in this specific procurement, which is common in large, sole-source defense contracts.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that the justification for not competing was sound.

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 overpricing
Limited transparency
Long-term commitment without market validation
Potential supply chain risk concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 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 $46.5 million.

What is the period of performance?

Start: 2022-05-26. End: 2026-10-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's impossible to confirm if all avenues for competition were exhausted. Oversight agencies should review the documentation to ensure the sole-source determination was appropriate and that the government did not forgo potential cost savings.

How does the unit cost of the 'Other Aircraft Parts' compare to industry benchmarks, given the lack of competitive pricing?

Assessing the unit cost against industry benchmarks is challenging without knowing the specific parts and quantities. However, the absence of competition inherently prevents the government from leveraging market forces to secure the lowest possible prices. A thorough post-award audit or comparison with similar non-competed contracts could reveal potential cost discrepancies.

What are the potential risks associated with a sole-source award for critical aircraft parts over a four-year period?

Sole-source awards for critical components over extended periods carry risks of price escalation, reduced innovation, and potential supply chain vulnerabilities if the sole provider faces issues. The government may become overly reliant on one supplier, diminishing its leverage in future negotiations and potentially impacting readiness if supply is disrupted.

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: $46,534,390

Exercised Options: $46,534,390

Current Obligation: $46,534,390

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $29,726,484

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