DoD awards $80.2M contract for aircraft parts, with L3Harris Technologies as sole source

Contract Overview

Contract Amount: $80,237,237 ($80.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2026-12-31

Contract Duration: 1,751 days

Daily Burn Rate: $45.8K/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 $80.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Significant duration of over 4 years suggests a long-term need for these parts. 3. The contract is for aircraft parts, indicating a focus on defense readiness. 4. L3Harris Technologies is a large, established defense contractor, suggesting a known entity. 5. The contract value is substantial, requiring careful oversight for value for money. 6. No small business set-aside or subcontracting was indicated, potentially limiting broader economic impact.

Value Assessment

Rating: questionable

The contract value of $80.2 million over approximately 4.7 years averages to about $17 million annually. Without comparable sole-source contracts for similar aircraft parts, it is difficult to benchmark the value for money. The lack of competition inherently limits the ability to assess if the pricing is competitive or represents a fair market value. Further analysis would require detailed cost breakdowns and comparisons to industry benchmarks for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies Integrated Systems L.P., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as competition is a key driver for cost savings in government procurement.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the availability of critical aircraft parts. The contract supports the maintenance and operational readiness of Air Force aircraft. The geographic impact is primarily in Texas, where L3Harris Technologies Integrated Systems L.P. is located. The contract supports jobs within L3Harris Technologies and its supply chain, particularly in the aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source award requires strong justification to ensure taxpayer value.
Long contract duration could mask inefficiencies if not actively managed.
No indication of small business involvement limits economic opportunity.

Positive Signals

Award to an established contractor like L3Harris suggests a degree of reliability and existing relationship.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential aircraft parts, supporting critical defense missions.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technological demands, stringent quality control, and significant government spending. The market size for aircraft parts is substantial, driven by military and commercial aviation needs. This specific contract represents a portion of the Department of Defense's overall spending on sustainment and readiness for its aircraft fleet.

Small Business Impact

This contract was not set aside for small businesses, nor was there any indication of subcontracting requirements for small businesses. This means that the primary awardee, L3Harris Technologies, will likely perform the majority of the work. Consequently, there is a missed opportunity to leverage the capabilities of small businesses within the defense supply chain and to foster their growth through this significant contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, there may be increased scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Inspector General (IG) to ensure the justification for the award and the pricing are sound. Transparency is limited due to the lack of a competitive process, making detailed public scrutiny of the value proposition more challenging.

Related Government Programs

Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Programs
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for reduced value for taxpayer dollars.
Limited transparency regarding justification for sole-sourcing.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.2 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 $80.2 million.

What is the period of performance?

Start: 2022-03-16. End: 2026-12-31.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique manufacturing capabilities, urgent and compelling circumstances, or a lack of adequate competition. Without further documentation, such as a Justification and Approval (J&A) document, the precise reasons remain unknown. This lack of transparency is a key concern for ensuring fair pricing and taxpayer value.

How does the $80.2 million contract value compare to historical spending on similar aircraft parts by the Air Force?

The provided data does not contain historical spending figures for similar aircraft parts, making a direct comparison difficult. However, $80.2 million over nearly five years represents a significant investment. To assess value, one would need to analyze past contracts for the same or comparable parts, considering factors like quantity, specifications, and inflation. The sole-source nature of this award suggests that historical price trends might not be as relevant as a thorough market analysis or benchmarking against current industry prices for similar components, which is also not provided.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $80.2 million is the potential for overpayment due to the absence of competitive pressure. Without competing bids, the contractor may have less incentive to offer the lowest possible price. Other risks include a lack of innovation that might arise from competition, and potential difficulties in transitioning to a different supplier in the future if needed. Ensuring robust oversight and justification for the sole-source determination is critical to mitigate these risks and protect taxpayer interests.

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

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with a significant history of supplying various systems and components to the Department of Defense. While specific details on their track record for these exact aircraft parts are not in the provided data, their status as a large, established entity suggests experience in defense manufacturing and logistics. A deeper dive into their past performance ratings, contract history, and any past issues or successes related to similar procurements would be necessary for a comprehensive assessment.

What is the expected impact of this contract on the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector?

This contract is likely to provide a stable revenue stream for L3Harris Technologies Integrated Systems L.P. within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. It supports a portion of the defense industrial base focused on sustainment and readiness. However, as a sole-source award without small business set-asides, its broader impact on stimulating competition or fostering new entrants within the sector may be limited. The contract reinforces the position of an incumbent supplier rather than potentially diversifying the supplier base.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $80,237,237

Exercised Options: $80,237,237

Current Obligation: $80,237,237

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $9,661,070

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