DoD's $52.6M BIG SAFARI-EO14042 contract to L3Harris for aircraft parts shows limited competition

Contract Overview

Contract Amount: $52,652,535 ($52.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2021-11-10

End Date: 2026-12-31

Contract Duration: 1,877 days

Daily Burn Rate: $28.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $52.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI-EO14042 Key points: 1. The contract's value of over $52 million suggests a significant investment in specialized aircraft components. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer dollars. 3. The fixed-price contract type aims to control costs, but the lack of competition may undermine this. 4. Performance context is limited without specific details on the aircraft or components involved. 5. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 6. The duration of nearly five years indicates a long-term need for these specialized parts.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the aircraft parts and their complexity. However, the limited competition (sole-source) suggests a potential for higher pricing than if the contract were fully competed. The fixed-price nature provides some cost control, but the lack of competitive pressure could lead to a less favorable price for the government compared to market rates for similar, widely available components. Further analysis would require understanding the unique specifications and the availability of alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, meaning it was not open to full and open competition. This typically occurs when a specific product or service is only available from a single source, or in cases of urgent need or national security concerns. The lack of multiple bidders means there was no competitive pressure to drive down prices or encourage innovation, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive bidding. The government did not benefit from the price discovery mechanisms inherent in a competitive procurement process.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving critical aircraft parts. This contract supports the operational readiness and maintenance of specific Air Force aircraft. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include employment at L3Harris and its supply chain, particularly in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may reduce incentives for the contractor to offer the best value.
Limited public information on the specific components and their criticality hinders full assessment.

Positive Signals

Fixed-price contract type helps to establish a ceiling on costs.
Long contract duration suggests a stable, ongoing requirement for critical parts.
Award to a known entity (L3Harris) may indicate a reliance on established capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code indicates a broad category that includes components not elsewhere classified. The market for such specialized parts can be niche, often dominated by a few key suppliers with specific technical expertise or certifications. Comparable spending benchmarks would depend heavily on the specific type of aircraft and the complexity of the parts being procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, L3Harris Technologies, is a large business, and any subcontracting would be at their discretion, potentially involving small businesses within their supply chain, but not mandated by this specific award's structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the contract terms, including delivery schedules and specifications. Transparency is limited due to the sole-source nature and the proprietary information often associated with defense contracting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics
Aerospace Components
Air Force Procurement
Sole-Source Contracts

Risk Flags

Sole-source award
Potential for inflated pricing
Limited transparency
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.7 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 $52.7 million.

What is the period of performance?

Start: 2021-11-10. End: 2026-12-31.

What is the specific nature of the 'BIG SAFARI-EO14042' program and the aircraft parts being procured?

The 'BIG SAFARI-EO14042' designation likely refers to a specific program or initiative within the Department of the Air Force, possibly related to intelligence, surveillance, and reconnaissance (ISR) or electronic warfare (EW) platforms, given the 'SAFARI' acronym often associated with such systems. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' Without further declassification or specific program details, the exact nature of these parts remains undisclosed. However, given the contractor and the context of defense spending, these are likely specialized components critical to the function of specific Air Force aircraft, potentially involving advanced electronics, structural elements, or mission system integration.

How does the $52.6 million contract value compare to historical spending on similar aircraft parts by the Air Force?

Comparing the $52.6 million contract value requires understanding the specific type of aircraft parts and their typical lifecycle costs. If these are highly specialized, low-volume components for advanced platforms, this value might be within a reasonable range for a multi-year procurement. However, if they are more common or less complex parts, this amount could be considered high, especially given the sole-source nature. Historical spending data for similar 'Other Aircraft Parts' categories would be needed for a robust comparison. The duration of the contract (nearly five years) also means the annual spending is approximately $10.5 million, which provides a more manageable figure for comparison against other sustainment or upgrade programs.

What are the primary risks associated with a sole-source award for critical aircraft parts?

The primary risks associated with a sole-source award for critical aircraft parts include inflated pricing due to the lack of competition, potential for reduced quality or innovation as the contractor faces no competitive pressure, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost for these parts than necessary. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the sole-source provider experiences production issues, delays, or ceases operations, the government's ability to maintain its aircraft could be severely impacted. This also limits the government's leverage in negotiating terms and conditions.

What is L3Harris Technologies' track record with the Department of Defense, particularly in aircraft parts manufacturing?

L3Harris Technologies is a major defense contractor with a substantial and long-standing relationship with the Department of Defense across various sectors, including aerospace, communications, and electronic systems. They have a proven track record in manufacturing complex components and integrated systems for military aircraft. Their experience spans numerous platforms and programs, indicating a high level of technical capability and program execution. While specific details on past performance related to 'Other Aircraft Parts' under this exact designation are not provided, L3Harris's overall profile suggests they are a capable supplier for demanding defense requirements. Past performance reviews and contract histories within DoD databases would offer more granular insights.

How does the fixed-price contract type mitigate risks in this sole-source scenario?

The firm-fixed-price (FFP) contract type is designed to shift the majority of the cost risk from the government to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with cost certainty and protects against cost overruns, which is particularly important in a sole-source situation where competitive pressure on pricing is absent. While the initial price might be higher due to the lack of competition, the FFP structure ensures that the government's financial exposure is capped at the agreed-upon amount, assuming the contractor meets all contract requirements.

What are the potential long-term implications of this contract on the market for specialized aircraft parts?

A sole-source award of this magnitude could potentially stifle competition in the long term by reinforcing the incumbent's market position. If L3Harris is the sole provider of these specific parts, it may deter other companies from investing in the necessary capabilities or certifications to enter the market. This could lead to continued reliance on a single supplier for future procurements, potentially perpetuating higher costs and limiting technological advancements. Conversely, if L3Harris leverages this contract to enhance its capabilities and supply chain, it could indirectly benefit the broader ecosystem, though direct competition remains limited.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

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: $52,652,535

Exercised Options: $52,652,535

Current Obligation: $52,652,535

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $16,151,072

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