DoD's $30.2M Big Safari contract awarded to L3Harris Technologies for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $30,205,766 ($30.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2023-09-30

Contract Duration: 729 days

Daily Burn Rate: $41.4K/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 $30.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value proposition is unclear due to a lack of competitive bidding. 2. Limited competition may have led to suboptimal pricing for the government. 3. The sole-source nature of the award presents a potential risk to cost control. 4. Performance context is limited as this is a delivery order under a larger IDIQ. 5. This contract falls within the 'Other Aircraft Parts' manufacturing sector. 6. The $30.2 million award represents a significant investment in specialized aircraft components.

Value Assessment

Rating: questionable

Benchmarking the value of this $30.2 million contract is challenging due to its sole-source nature and the specific, potentially niche, nature of the 'BIG SAFARI' program. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if alternative solutions could have been procured at a lower cost. The fixed-price contract type offers some cost certainty, but the absence of competition limits the ability to assess cost-effectiveness against industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies, was solicited. This significantly limits the opportunity for price discovery and potentially reduces the government's leverage in negotiating favorable terms. The lack of competition means that the government did not benefit from the potential cost savings that often arise from multiple vendors vying for a contract.

Taxpayer Impact: Taxpayers may have paid a premium for these aircraft parts due to the absence of a competitive bidding process. The government's ability to secure the best possible price was diminished without alternative offers to consider.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially specific military units relying on specialized aircraft. The contract delivers essential aircraft parts and auxiliary equipment, crucial for maintaining operational readiness. The geographic impact is centered in Texas, where L3Harris Technologies is located, but the ultimate operational impact is global for the Air Force. Workforce implications include support for skilled manufacturing jobs within L3Harris Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of transparency in the procurement process due to limited competition.
Potential for cost overruns if pricing is not rigorously scrutinized without market comparison.
Dependence on a single contractor for critical aircraft components.

Positive Signals

Award to an established contractor with presumed expertise in the field.
Firm Fixed Price contract provides cost certainty once awarded.
Delivery order under an existing IDIQ may indicate some prior vetting.
Contract supports critical defense capabilities for the Air Force.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment of the aerospace industry. This contract, valued at over $30 million, represents a significant procurement within this niche. The market is characterized by high technical barriers to entry and often involves long-standing relationships between defense contractors and the government. Comparable spending benchmarks are difficult to establish without more specific details on the parts procured, but large sole-source awards in defense manufacturing often indicate unique capabilities or urgent needs.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation. This procurement does not appear to actively contribute to the small business ecosystem or fulfill set-aside goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management oversight mechanisms. As a delivery order under a larger contract, its initial award may have undergone review, but ongoing oversight of performance and costs would be managed by the contracting officer and program managers. Transparency is limited due to the sole-source nature, and specific Inspector General jurisdiction would depend on the nature of any potential issues arising.

Related Government Programs

BIG SAFARI Program
Air Force Aircraft Maintenance Contracts
Defense Industrial Base Contracts
Specialized Aerospace Component Manufacturing

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 $30.2 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 $30.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2023-09-30.

What is the specific nature of the 'BIG SAFARI' program and the aircraft parts being procured under this contract?

The 'BIG SAFARI' (Special Access For Flight Programs) program is a long-standing initiative within the U.S. Air Force focused on acquiring and modifying special mission aircraft and associated systems. While specific details of the parts procured under this $30.2 million contract are not publicly disclosed due to the sensitive nature of the program, they likely pertain to specialized avionics, sensors, communication equipment, or structural modifications required for these unique aircraft platforms. The sole-source award to L3Harris Technologies suggests that the company possesses unique capabilities or proprietary technology essential for fulfilling the program's requirements, which may include integration, modification, or manufacturing of highly specialized components.

How does the $30.2 million value of this contract compare to historical spending on similar aircraft parts or 'BIG SAFARI' program components?

Direct historical spending comparisons for this specific contract are challenging due to the classified or sensitive nature of the 'BIG SAFARI' program and the sole-source award. However, the $30.2 million figure represents a substantial investment. Historically, modifications and specialized components for unique Air Force platforms can range from millions to tens of millions of dollars per contract, depending on the complexity and scope. Without access to detailed program spending data or competitive bids from similar procurements, it's difficult to definitively benchmark this award. The absence of competition means there's no direct market comparison to assess if this amount is optimal or if it reflects a premium for specialized, non-commercially available parts or services.

What are the primary risks associated with awarding a $30.2 million contract on a sole-source basis for aircraft parts?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing and reduced value for money. Without competition, the government lacks the leverage to negotiate the lowest possible price, potentially leading to higher costs for taxpayers. Another significant risk is contractor lock-in; the government may become overly reliant on L3Harris Technologies for these specific parts, making it difficult and costly to switch providers in the future, even if performance or pricing issues arise. Furthermore, the lack of transparency inherent in sole-source procurements can obscure potential inefficiencies or cost-saving opportunities that might be revealed through a competitive process.

What is L3Harris Technologies' track record with the Department of Defense, particularly concerning 'BIG SAFARI' or similar specialized aircraft programs?

L3Harris Technologies (and its predecessor companies) has a long and established track record of supporting the Department of Defense, including extensive involvement in various special mission aircraft programs and complex aerospace systems. They are known for their expertise in areas such as avionics, electronic warfare, communications, and aircraft modification. While specific contract details for 'BIG SAFARI' are often sensitive, L3Harris has historically been a key player in providing advanced technological solutions and integrated systems for defense applications. Their extensive experience suggests a strong capability to meet the demanding requirements of programs like 'BIG SAFARI', though the sole-source nature of this particular award warrants scrutiny regarding pricing and justification.

How does the firm fixed-price (FFP) contract type mitigate or exacerbate the risks associated with this sole-source award?

The Firm Fixed Price (FFP) contract type is generally favored by the government as it shifts the risk of cost overruns to the contractor, L3Harris Technologies. This means that the $30.2 million price is intended to be the total cost, regardless of the contractor's actual expenses. In this context, FFP helps to provide cost certainty for the government, which is beneficial, especially given the sole-source nature where price negotiation might be less robust. However, it doesn't eliminate the risk that the initial FFP was set too high due to the lack of competition. If the contractor underestimated costs, they bear the loss; if they overestimated, the government pays a premium. Therefore, while FFP provides budget predictability, it doesn't guarantee optimal value without a competitive baseline.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT 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: $32,657,344

Exercised Options: $32,657,344

Current Obligation: $30,205,766

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,736,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline