DoD Awards $76M Contract to L3Harris for Aircraft Parts, Raising Competition Concerns

Contract Overview

Contract Amount: $75,975,126 ($76.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-12-31

End Date: 2024-12-31

Contract Duration: 731 days

Daily Burn Rate: $103.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI, EO14042

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $76.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI, EO14042 Key points: 1. Significant award of $75.98M to L3Harris Technologies for aircraft parts. 2. Contract awarded via 'NOT COMPETED' method, limiting market visibility. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: fair

The award of $75.98M for aircraft parts appears to be a significant sum. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This method bypasses the standard competitive process, potentially impacting price discovery and leading to less favorable pricing for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts, as the government did not leverage market forces to secure the best possible price.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to a lack of competitive bidding. The Department of Defense relies on a single vendor, potentially creating supply chain risks. Transparency in defense spending is reduced when contracts are not openly competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Sole-source award

Positive Signals

Essential aircraft parts procurement
Long-term contract duration (731 days)

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks for similar sole-source contracts are often higher than competed ones.

Small Business Impact

The data indicates this contract was awarded to L3Harris Technologies, a large corporation. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for bypassing competition was sound and that the pricing is reasonable. Accountability for sole-source awards is crucial for fiscal responsibility.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for price gouging
Limited transparency
Sole-source dependency
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. BIG SAFARI, EO14042

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 $76.0 million.

What is the period of performance?

Start: 2022-12-31. End: 2024-12-31.

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

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without access to the contract's justification documentation, it's impossible to determine the specific reasons. However, the 'NOT COMPETED' designation implies that a competitive process was deemed unnecessary or impractical, which warrants scrutiny to ensure taxpayer funds are used efficiently.

How does the $75.98M contract value compare to industry benchmarks for similar aircraft parts procured through competitive means?

Direct comparison is challenging without specific part details and market data. However, sole-source contracts are generally expected to be higher than competitively awarded ones due to the absence of price pressure from multiple bidders. Further analysis would require detailed specifications of the parts and a benchmark study of comparable items acquired through open competition to quantify the potential price difference.

What are the potential long-term risks associated with relying on a single supplier for these critical aircraft parts, especially given the 2-year duration?

Relying on a single supplier for critical aircraft parts over a two-year period introduces several risks. These include potential supply chain disruptions if the sole provider faces issues, lack of flexibility to adopt newer technologies or materials, and continued vulnerability to potentially non-competitive pricing. This dependency could impact operational readiness if the supplier fails to deliver or maintain quality standards.

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: $75,975,126

Exercised Options: $75,975,126

Current Obligation: $75,975,126

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $9,371,885

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