DoD's $38M Big Safari contract awarded to L3Harris for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $38,046,356 ($38.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-02-03

End Date: 2024-11-30

Contract Duration: 1,031 days

Daily Burn Rate: $36.9K/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 $38.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 1000 days suggests a long-term need. 3. The contract's value is substantial, requiring careful oversight. 4. Lack of competition may lead to suboptimal pricing. 5. Performance context is tied to the Air Force's 'Big Safari' program, known for rapid acquisition of special operations aircraft. 6. Sector positioning is within specialized aerospace manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific application within the 'Big Safari' program. Without competitive bids, it's difficult to ascertain if the $38 million represents a fair market price. The fixed-price nature provides some cost certainty, but the lack of competition raises questions about potential overpayment. Further analysis would require access to internal cost data or comparable sole-source awards for similar specialized aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is often used for highly specialized or proprietary technologies where only one vendor can meet the requirement. While this can ensure access to unique capabilities, it significantly reduces price discovery and can lead to higher costs for the government compared to a competed procurement. The absence of multiple bidders means the government did not benefit from a competitive bidding process to drive down prices.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the lack of competition. Sole-source awards bypass the natural cost-saving mechanisms inherent in a competitive bidding environment, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially special operations forces who rely on specialized aircraft capabilities. The contract delivers critical aircraft parts and auxiliary equipment, essential for maintaining and upgrading specialized aviation assets. Geographic impact is primarily within Texas, where L3Harris is located, but the ultimate impact is on national defense capabilities. Workforce implications include support for skilled manufacturing and engineering jobs within the aerospace sector at L3Harris.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and competitive pricing.
High contract value necessitates rigorous oversight to ensure value for money.
Potential for cost overruns if not closely managed due to lack of competition.

Positive Signals

Award to an established contractor with a track record in aerospace.
Fixed-price contract provides some cost predictability.
Supports critical national defense capabilities.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The 'Big Safari' program itself is a well-known Air Force initiative focused on rapid acquisition and modification of aircraft for special operations and intelligence, surveillance, and reconnaissance (ISR) missions. Spending in this area is often driven by specific, urgent operational needs rather than broad market trends.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless L3Harris actively engages small businesses in its supply chain for this specific contract. Further investigation into L3Harris's subcontracting plans would be needed to assess broader small business implications.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given its sole-source nature and significant value, enhanced oversight is crucial. Transparency could be improved by making more detailed justifications for the sole-source award publicly available. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Air Force Special Operations Command (AFSOC) aircraft programs
Intelligence, Surveillance, and Reconnaissance (ISR) aircraft modifications
Defense contract awards for aircraft components
Sole-source defense procurements

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 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 $38.0 million.

What is the period of performance?

Start: 2022-02-03. End: 2024-11-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. While the specific justification is not detailed, sole-source awards for the 'Big Safari' program are typically based on requirements for highly specialized, unique, or proprietary technologies, or when only one responsible source can provide the required supplies or services. The 'Big Safari' program is known for its rapid acquisition of modified aircraft, often involving complex systems integration and unique modifications where competition might be impractical or unduly delay critical operational capabilities. A full justification would likely be found in the contract's Justification and Approval (J&A) document, which details why full and open competition is not feasible.

How does the $38 million contract value compare to similar 'Big Safari' program contracts?

Direct comparison of this $38 million contract value to other 'Big Safari' program contracts is difficult without access to a comprehensive database of all 'Big Safari' awards and their specific scopes of work. The 'Big Safari' program encompasses a wide range of activities, from initial concept development and prototyping to full-scale modifications and sustainment of specialized aircraft. Contract values can vary significantly based on the complexity of the aircraft, the extent of modifications, the systems being integrated, and the duration of the contract. However, $38 million represents a substantial investment, suggesting a significant scope of work, likely involving advanced technology integration or extensive component manufacturing for specialized aviation platforms.

What are the key performance indicators (KPIs) or metrics used to assess the performance of L3Harris on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. Typically, for fixed-price contracts involving manufacturing and delivery of aircraft parts, performance is assessed based on factors such as on-time delivery, quality of components (meeting specifications and defect rates), adherence to schedule, and responsiveness to any technical queries or issues. For a 'Big Safari' contract, which often involves rapid deployment and modification, agility and the ability to meet evolving operational requirements might also be critical performance aspects. The Air Force contracting officer and program managers would be responsible for monitoring these metrics throughout the contract's duration.

What is the historical spending trend for the 'Big Safari' program or similar aircraft parts procurements by the Air Force?

Analyzing historical spending trends for the 'Big Safari' program requires access to historical contract databases and budget information. The 'Big Safari' program has been a long-standing initiative within the Air Force, often associated with significant, albeit sometimes fluctuating, annual expenditures. Spending can be influenced by geopolitical events, evolving threats, and modernization priorities. Procurements for specialized aircraft parts and modifications within this program can range from millions to hundreds of millions of dollars annually, depending on the specific projects undertaken. Without specific historical data for 'Big Safari' or comparable sole-source aircraft parts contracts, it's challenging to establish a precise trend, but it generally reflects a consistent need for specialized aviation capabilities.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($38 million) and duration (over 3 years) include potential cost inefficiencies, lack of innovation spurred by competition, and vendor lock-in. Without competitive pressure, the contractor may have less incentive to optimize costs, potentially leading to higher prices than if the contract were competed. The long duration increases the risk of cost escalation if market conditions change significantly and the government is locked into the initial pricing structure. Furthermore, reliance on a single source can create vulnerabilities if the contractor faces financial difficulties, operational issues, or decides to exit the market. Robust government oversight, clear performance standards, and contingency planning are essential to mitigate these risks.

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: $38,048,006

Exercised Options: $38,048,006

Current Obligation: $38,046,356

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $42,736

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