DoD's $33.7M Big Safari contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $33,753,174 ($33.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2025-05-31

Contract Duration: 243 days

Daily Burn Rate: $138.9K/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 $33.8 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. 3. Risk indicators include reliance on a single contractor and potential for cost overruns. 4. Performance context is tied to the 'Big Safari' program, known for rapid acquisition. 5. Sector positioning is within aerospace and defense, specifically aircraft parts manufacturing. 6. The contract's duration and firm-fixed-price nature suggest a defined scope of work.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.7 million contract is challenging without comparable sole-source awards or detailed cost data. The firm-fixed-price structure provides some cost certainty, but the absence of competition raises concerns about whether the government secured the best possible price. Without a competitive bidding process, it's difficult to ascertain if L3Harris's pricing reflects market rates or if there's an opportunity for cost savings through broader solicitation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3Harris was the only bidder considered. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means there was no opportunity for price discovery through multiple bids, potentially impacting the final cost to the government.

Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward price pressure that competition provides. This can result in higher expenditures than might be achieved in a fully competed scenario.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving critical aircraft parts. Services delivered include the manufacturing and supply of specialized aircraft components under the 'Big Safari' program. Geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications include job creation and maintenance within L3Harris's facilities in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency in cost breakdown.
Potential for cost escalation without competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established defense contractor with relevant expertise.
Contract supports critical defense acquisition programs.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of aircraft parts and auxiliary equipment. The market for such components is highly specialized, often dominated by a few key players due to stringent quality and technological requirements. The 'Big Safari' program itself is known for its rapid acquisition of advanced aerospace capabilities, suggesting this contract supports cutting-edge or specialized defense needs.

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 reduces the likelihood of direct small business participation through this specific contract vehicle.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source nature and lack of public cost details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Big Safari Program
Air Force Aircraft Procurement
Aerospace Parts Manufacturing
Defense Logistics

Risk Flags

Sole Source Justification
Lack of Competition
Limited Price Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 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 $33.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-05-31.

What is the historical spending pattern for the 'Big Safari' program and similar aircraft parts contracts?

The 'Big Safari' program is a classified initiative within the U.S. Air Force focused on rapid acquisition of special operations and intelligence, surveillance, and reconnaissance (ISR) aircraft and capabilities. Historical spending within 'Big Safari' is often classified or not publicly detailed. However, the broader category of aircraft parts and auxiliary equipment manufacturing for the Department of Defense sees billions of dollars in annual spending. Contracts for specialized components, especially those under rapid acquisition programs, can vary significantly in value. Without specific program data, direct historical comparisons are difficult, but the overall trend for defense aerospace components is substantial and consistent, driven by modernization and operational needs.

What is L3Harris Technologies' track record with the Department of Defense, particularly on sole-source contracts?

L3Harris Technologies is a major defense contractor with a long history of supplying complex systems and components to the Department of Defense across various branches. They have a significant portfolio of contracts, many of which are competitively awarded. However, like many large defense firms, L3Harris also receives sole-source awards, particularly for specialized technologies, upgrades, or when they are the incumbent provider with unique capabilities. Their track record generally indicates successful delivery, but the specifics of sole-source awards, including pricing and justification, are often less transparent than for competed contracts. Reviewing past performance on similar sole-source awards would be necessary for a comprehensive assessment.

How does the $33.7 million value compare to typical contracts for aircraft parts and auxiliary equipment?

The $33.7 million value for this contract is substantial but falls within the typical range for significant procurements of specialized aircraft parts and auxiliary equipment, especially for defense applications. Contracts in this category can range from a few million dollars for specific components to hundreds of millions or even billions for major systems or large-scale production runs. Given that this is for the 'Big Safari' program, which often involves advanced or unique requirements, a value in the tens of millions is plausible. However, without knowing the specific nature of the parts or the quantity, a precise comparison is difficult. The sole-source nature also means this figure isn't directly comparable to a competitively bid price for the same items.

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

The primary risks associated with a sole-source award for critical aircraft components include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the chosen solution. Taxpayers may bear a higher cost than if multiple vendors had competed. Furthermore, reliance on a single supplier can create supply chain vulnerabilities if that supplier faces production issues, financial instability, or geopolitical challenges. The government also has less leverage to negotiate favorable terms or pricing compared to a competitive environment.

What oversight mechanisms are in place for sole-source contracts awarded under programs like 'Big Safari'?

Oversight for sole-source contracts, even within specialized programs like 'Big Safari,' generally involves several layers. Contracting officers are responsible for ensuring the justification for a sole-source award is valid and properly documented, adhering to Federal Acquisition Regulation (FAR) guidelines. Program managers oversee the technical execution and performance. Financial oversight ensures funds are available and properly obligated. While specific program oversight details for 'Big Safari' may be classified, standard DoD procedures require performance monitoring, quality assurance, and compliance checks. Inspector Generals also provide an independent layer of oversight to detect fraud, waste, and abuse.

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: $33,753,174

Exercised Options: $33,753,174

Current Obligation: $33,753,174

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $1,952,080

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