DoD Awards $41.4M for Aircraft Parts to L3Harris, Limited Competition Raises Concerns
Contract Overview
Contract Amount: $41,397,691 ($41.4M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2022-03-23
End Date: 2025-03-31
Contract Duration: 1,104 days
Daily Burn Rate: $37.5K/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 $41.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $41.4 million awarded. 2. L3Harris Technologies is the sole awardee, indicating limited competition. 3. The contract is for aircraft parts, falling under the 'Other Aircraft Parts' manufacturing NAICS code. 4. Risk associated with limited competition and potential for inflated pricing.
Value Assessment
Rating: questionable
The contract value of $41.4 million for aircraft parts needs further benchmarking against similar DoD procurements. Without competitive bids, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, suggesting a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on L3Harris for critical aircraft components. Potential for reduced innovation and efficiency without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in pricing
Positive Signals
- Award to established defense contractor
- Long-term contract duration (2022-2025)
Sector Analysis
This contract falls within the defense sector, specifically for aircraft parts manufacturing. Spending in this area is substantial, and competitive sourcing is crucial for cost efficiency.
Small Business Impact
The awardee is L3Harris Technologies, a large corporation, and there is no indication that small businesses were involved in this specific contract as subcontractors or prime contractors.
Oversight & Accountability
Further oversight is needed to ensure the pricing is justified given the limited competition. The Department of Defense should document the rationale for not competing this requirement.
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
- No small business participation indicated
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 $41.4 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 $41.4 million.
What is the period of performance?
Start: 2022-03-23. End: 2025-03-31.
What is the justification for awarding this contract without full and open competition?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as a sole-source requirement due to unique capabilities, urgent need, or lack of available sources. Without this documentation, the rationale remains unclear, raising concerns about potential missed savings.
How does the $41.4 million price compare to similar aircraft parts procured competitively?
Benchmarking this $41.4 million award against similar aircraft parts procured through competitive means is essential. Given the 'NOT COMPETED' status, there's a risk this price is higher than it would be under full and open competition. A detailed cost analysis comparing unit prices, material costs, and labor rates would be necessary to determine fair and reasonable pricing.
What is the potential impact on future defense procurement strategies if limited competition becomes standard?
If limited competition becomes a standard practice for essential components like aircraft parts, it could lead to sustained higher costs for the Department of Defense and taxpayers. It may also stifle innovation from smaller, emerging companies unable to break into established supply chains. This could reduce overall market efficiency and potentially compromise national security through reliance on a narrow supplier base.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $41,397,691
Exercised Options: $41,397,691
Current Obligation: $41,397,691
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,034,537
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4027
IDV Type: BOA
Timeline
Start Date: 2022-03-23
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-03-10
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