DoD Awards $64.6M Contract to L3Harris for Aircraft Parts, Raising Competition Concerns
Contract Overview
Contract Amount: $64,648,026 ($64.6M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2026-12-31
Contract Duration: 1,554 days
Daily Burn Rate: $41.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
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 $64.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $64.6 million awarded to L3Harris Technologies. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration extends to late 2026, indicating long-term reliance. 4. Focus on 'Other Aircraft Parts' suggests a specialized, potentially niche market.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without a competitive benchmark, it's difficult to assess if the $64.6 million price is reasonable for the scope of 'Other Aircraft Parts'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'NOT AVAILABLE FOR COMPETITION', indicating a limited or sole-source procurement. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation and quality if only one supplier is considered. Dependence on a single contractor for critical aircraft parts could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending in this sector is often characterized by high R&D costs and specialized production, but competitive bidding is crucial for cost control.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. This represents a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation warrants further oversight to ensure the justification for limited competition is sound and that the pricing is scrutinized rigorously.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for price inflation
- Long-term vendor lock-in
- Limited transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.6 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 $64.6 million.
What is the period of performance?
Start: 2022-09-29. End: 2026-12-31.
What specific justification was provided for awarding this contract without full and open competition, and how was the pricing validated?
The justification for 'NOT AVAILABLE FOR COMPETITION' needs to be thoroughly reviewed. Without competitive bids, the government must rely on robust cost analysis and negotiation to ensure fair pricing. The specific rationale for limiting competition is critical to understanding potential value impacts.
What are the risks associated with relying on a single source for these 'Other Aircraft Parts' over a 4-year period?
The primary risks include supply chain disruptions if the sole source faces production issues, potential price escalations due to lack of market pressure, and limited opportunities for technological upgrades or alternative solutions. This long-term dependency could impact operational readiness and cost-effectiveness.
How does the Cost Plus Fixed Fee structure impact the overall effectiveness and cost control of this contract?
Cost Plus Fixed Fee contracts can lead to less incentive for the contractor to control costs, as the government bears the majority of the expense. While it allows for flexibility in scope, it requires stringent oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the effort.
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: COST PLUS FIXED FEE (U)
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: $64,648,026
Exercised Options: $64,648,026
Current Obligation: $64,648,026
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $4,356,365
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4027
IDV Type: BOA
Timeline
Start Date: 2022-09-29
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-14
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