DoD's $31.6M BIG SAFARI contract to L3Harris for aircraft parts faces scrutiny over limited competition

Contract Overview

Contract Amount: $31,639,127 ($31.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-06-21

End Date: 2025-06-30

Contract Duration: 1,105 days

Daily Burn Rate: $28.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $31.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded via other than full and open competition, raising questions about price discovery. 2. Significant contract value for aircraft parts manufacturing, indicating a critical need. 3. Limited competition may lead to higher costs for taxpayers. 4. Contract duration extends over two years, suggesting a sustained requirement. 5. Awarded to a single, established defense contractor, potentially limiting market entry for others. 6. The 'Other Aircraft Parts' category is broad, making specific performance benchmarks difficult. 7. The contract's value is substantial within its manufacturing subsector.

Value Assessment

Rating: fair

The contract value of $31.6 million for aircraft parts is substantial. Without specific details on the parts or services rendered, a direct comparison to similar contracts is challenging. However, the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code suggests a specialized area. The firm fixed-price contract type provides some cost certainty, but the lack of competition makes it difficult to benchmark the pricing against market rates or assess if the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using 'Other than Full and Open Competition,' indicating that only one source was considered capable of meeting the requirement. The specific justification for this approach is not provided, but it typically arises when unique capabilities, proprietary technology, or urgent needs preclude a competitive bidding process. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as the government lacks the leverage of competitive bids to drive down costs. This limits the opportunity for the government to explore potentially more cost-effective solutions from a wider range of suppliers.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, receiving critical aircraft parts. The contract supports the maintenance and operational readiness of military aircraft. The geographic impact is centered in Texas, where L3Harris's facility is located. This contract supports jobs within the aerospace manufacturing sector, particularly in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of parts.
Contract duration could mask inefficiencies if not closely monitored.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established contractor suggests a level of reliability.
Contract supports critical defense readiness needs.

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 (336413) covers a wide range of components. The total federal spending in this sector is substantial, driven by the need for advanced and reliable equipment for military aviation. L3Harris Technologies is a significant player in this market, providing complex systems and components to various government agencies. Benchmarking this specific contract's value against the broader sector is challenging without more granular data on the types of parts procured.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is L3Harris Technologies, a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses. The lack of a set-aside means that opportunities for small businesses to directly participate in this specific contract are likely limited, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some cost control, but the sole-source award necessitates rigorous performance monitoring to ensure delivery of quality parts and adherence to specifications. Transparency is limited by the non-competitive nature of the award. The Inspector General of the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Aircraft Component Manufacturing
Defense Logistics Support
Air Force Procurement
Aerospace Parts Supply Chain
Military Aircraft Maintenance

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 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 $31.6 million.

What is the period of performance?

Start: 2022-06-21. End: 2025-06-30.

What specific aircraft parts or auxiliary equipment are being procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' This broad category encompasses a wide array of components, including but not limited to, engine parts, landing gear, avionics components, structural elements, and other specialized equipment necessary for aircraft operation and maintenance. Without further details from the contract award documentation or associated statements of work, the precise nature of the 'BIG SAFARI' procured items remains unspecified. This lack of specificity hinders a detailed analysis of the contract's technical requirements and its direct contribution to specific Air Force platforms or programs.

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

The data indicates the contract was awarded under 'Other than Full and Open Competition,' commonly referred to as a sole-source award. The specific justification for this procurement method is not detailed in the provided information. Typically, sole-source awards are justified when only one responsible source is available to meet the government's needs. This can be due to unique capabilities, proprietary technology, urgent and compelling requirements where competition is not feasible, or when a previous contract was awarded competitively and the follow-on work can only be performed by the original contractor. A thorough review of the Justification and Approval (J&A) document associated with this contract would be necessary to understand the precise rationale.

How does the $31.6 million contract value compare to historical spending on similar aircraft parts by the Department of Defense?

Comparing the $31.6 million contract value for 'BIG SAFARI' to historical spending on similar aircraft parts requires access to detailed historical procurement data, which is not fully provided. However, within the NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' annual federal spending can range from billions to tens of billions of dollars, depending on the year and specific defense priorities. A contract of $31.6 million is a significant award for a single procurement action but represents a fraction of the overall defense budget allocated to aircraft sustainment and component manufacturing. To provide a precise comparison, one would need to identify comparable contracts awarded over several fiscal years, considering factors like the specific types of parts, the platforms they support, and the contracting agency.

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

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price for the goods or services. Other risks include a reduced incentive for the contractor to innovate or improve efficiency, potential vendor lock-in if the parts are highly specialized or proprietary, and a lack of transparency in the procurement process. Furthermore, if the sole-source justification is weak or based on outdated information, it could indicate poor planning or a missed opportunity to foster broader market competition. Effective risk mitigation requires robust contract oversight and performance management.

What is L3Harris Technologies' track record with similar Department of Defense contracts?

L3Harris Technologies, and its predecessor companies, have a long and extensive track record of supplying complex systems, components, and services to the Department of Defense (DoD). They are a major defense contractor involved in various areas, including aerospace, communications, and electronic systems. Their history with the DoD includes numerous contracts for aircraft components, avionics, and sustainment support across different military branches. While specific performance metrics for past contracts are not detailed here, L3Harris is generally considered a capable and experienced provider within the defense industrial base. However, like any large contractor, their performance can vary across individual contracts, and a review of their specific contract history, including any past performance issues or awards, would be necessary for a comprehensive assessment.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $31,639,127

Exercised Options: $31,639,127

Current Obligation: $31,639,127

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $22,115,965

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