DoD's $26.8M Big Safari contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $26,879,722 ($26.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-06-08

End Date: 2026-04-30

Contract Duration: 1,422 days

Daily Burn Rate: $18.9K/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 $26.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Value for money is difficult to assess due to limited competition and lack of detailed cost breakdowns. 2. Competition dynamics show a sole-source award, potentially leading to higher prices and reduced innovation. 3. Risk indicators include reliance on a single contractor and potential for cost overruns without competitive pressure. 4. Performance context is tied to the 'Big Safari' program, known for rapid acquisition of specialized capabilities. 5. Sector positioning places this contract within the 'Other Aircraft Parts' manufacturing industry, supporting defense needs.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark against similar procurements due to its sole-source nature and the specialized 'Big Safari' program context. Without competitive bids, it's challenging to determine if the $26.8 million price represents fair market value. The firm fixed-price structure offers some cost certainty, but the absence of competition limits the government's ability to negotiate the best possible price. Further analysis of cost elements would be needed to provide a more definitive value assessment.

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 Integrated Systems L.P., was considered. This approach bypasses the standard competitive bidding process, often justified for unique capabilities or urgent needs. The lack of multiple bidders means there was no direct price comparison or negotiation leverage derived from a competitive environment, which can impact price discovery.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competition.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving specialized aircraft parts. Services delivered include the manufacturing and supply of critical components for advanced aircraft programs under the 'Big Safari' initiative. Geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, potentially supporting local jobs. Workforce implications may include specialized manufacturing roles within L3Harris and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can reduce transparency in pricing.
Potential for vendor lock-in with specialized components.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established defense contractor with relevant expertise.
Supports critical defense acquisition programs ('Big Safari').

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The 'Big Safari' program is known for its rapid acquisition of highly specialized and often classified intelligence, surveillance, and reconnaissance (ISR) aircraft and capabilities. Spending in this niche area is driven by national security requirements and technological advancements, making direct comparisons to broader aircraft parts manufacturing difficult. The market is characterized by a limited number of highly capable contractors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate directly in this specific contract, though they may be part of L3Harris's broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. As a sole-source award, the justification for this approach would be subject to review. Transparency is limited due to the lack of competitive bidding and the specialized nature of the 'Big Safari' program. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Big Safari Program
Air Force Special Operations Command
ISR Aircraft Procurement
Defense Industrial Base

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on cost justification.
Potential for higher taxpayer cost due to no competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 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 $26.9 million.

What is the period of performance?

Start: 2022-06-08. End: 2026-04-30.

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

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For the 'Big Safari' program, this often relates to highly specialized, unique, or classified technological requirements where only a specific contractor possesses the necessary intellectual property, facilities, or expertise. The Department of Defense would have provided a Justification and Approval (J&A) document outlining the specific reasons why full and open competition was not feasible or not in the government's best interest for this particular requirement. This could include factors like proprietary technology, urgent operational needs, or the need for seamless integration with existing systems developed by that contractor.

How does the $26.8 million cost compare to similar 'Big Safari' program contracts?

Direct cost comparisons for 'Big Safari' program contracts are challenging due to the highly specialized and often classified nature of the projects. Each 'Big Safari' acquisition is tailored to unique mission requirements, involving custom modifications, integration of advanced sensors, and unique platform adaptations. Therefore, a simple dollar-for-dollar comparison with other contracts under the umbrella program may not be meaningful. The value is assessed based on the specific capabilities delivered, the complexity of the modifications, and the urgency of the requirement. Without access to detailed cost breakdowns and specific program objectives for this L3Harris contract, benchmarking against other 'Big Safari' efforts is speculative.

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 potential for higher costs due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of alternative suppliers if issues arise with the awarded contractor. Taxpayers may bear a higher cost burden. Furthermore, the government becomes dependent on a single vendor, creating a risk of vendor lock-in and potential supply chain disruptions if the contractor faces financial or operational difficulties. This also limits the government's leverage in future negotiations or contract modifications.

What is L3Harris Technologies' track record with the 'Big Safari' program and similar defense contracts?

L3Harris Technologies, and its predecessor companies, have a significant and established track record of supporting the Department of Defense, including extensive involvement with the 'Big Safari' program. They are known for their expertise in developing and integrating advanced electronic systems, communication technologies, and mission equipment for intelligence, surveillance, and reconnaissance (ISR) platforms. Their history includes numerous contracts for modifying aircraft, developing specialized payloads, and providing sustainment services for complex defense systems. This long-standing relationship and demonstrated capability likely contributed to their selection for this sole-source award, indicating a level of trust and proven performance with the agency.

How does the firm fixed-price (FFP) contract type mitigate risks for this sole-source award?

A Firm Fixed-Price (FFP) contract type is beneficial as it shifts 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 potential cost overruns that might occur if the contractor experiences unexpected expenses during performance. While this contract is sole-source, the FFP structure still provides a defined ceiling, preventing the total expenditure from exceeding the agreed-upon $26.8 million, assuming no modifications or change orders.

What is the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?

Historical spending by the Department of Defense (DoD) in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category (NAICS 336413) has been substantial, reflecting the continuous need for maintenance, upgrades, and specialized components for its vast aircraft fleet. While specific figures fluctuate annually based on modernization programs, operational tempo, and new platform procurements, the DoD is consistently one of the largest government purchasers in this sector. Spending trends are influenced by geopolitical factors, defense budgets, and the lifecycle of various aircraft systems, often showing steady or increasing investment in advanced and specialized parts to maintain air superiority and technological edge.

Industry Classification

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

Product/Service Code: TRAINING AIDS AND DEVICES

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: $26,879,722

Exercised Options: $26,879,722

Current Obligation: $26,879,722

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $10,000,000

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