DoD's $28.3M Big Safari contract to L3 Technologies for custom programming services awarded via sole-source justification

Contract Overview

Contract Amount: $28,338,801 ($28.3M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-10-21

End Date: 2025-08-31

Contract Duration: 1,045 days

Daily Burn Rate: $27.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to L3 TECHNOLOGIES, INC. for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract duration of nearly three years suggests a significant and ongoing need for these services. 3. Awarded to L3 Technologies, Inc., a large defense contractor with a substantial presence in the sector. 4. The specific nature of 'Big Safari' program implies a specialized, potentially sensitive, and high-stakes requirement. 5. Lack of competition raises concerns about potential overpayment and limited innovation. 6. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services rendered under the 'Big Safari' program. However, the cost-plus-fixed-fee structure, combined with a sole-source award, presents a higher risk of the government not achieving the best possible value. The absence of competitive bids means there was no market pressure to drive down costs. Further analysis would require understanding the specific deliverables and comparing L3 Technologies' pricing to industry standards for similar custom programming services in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3 Technologies, Inc., was solicited. This approach bypasses the standard competitive procurement process. While sole-source awards are sometimes justified for unique capabilities or urgent needs, they typically result in higher prices and reduced innovation compared to full and open competition. The lack of multiple bidders limits the government's ability to compare offers and ensure it is receiving the most cost-effective solution.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competition. Without competitive pressure, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities involved in the 'Big Safari' program, receiving specialized custom computer programming services. The services delivered are critical for the advancement and operation of specific defense capabilities under the 'Big Safari' initiative. The geographic impact is centered in Texas, where the contractor's facility is located, potentially supporting local jobs. Workforce implications include the employment of skilled programmers and technical staff at L3 Technologies to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize cost overruns if not rigorously monitored.
Lack of transparency inherent in sole-source procurements makes independent value assessment difficult.
The 'Big Safari' program's specific nature is not publicly detailed, hindering understanding of the necessity for sole-sourcing.
Limited competition may stifle innovation by not exposing the government to alternative technical solutions.

Positive Signals

Award to an established contractor like L3 Technologies suggests a level of trust and existing capability.
The contract duration indicates a sustained need, potentially for critical defense systems.
The fixed-fee component of the contract provides some cost certainty compared to pure cost-plus contracts.
Delivery order structure implies it's part of a potentially pre-vetted larger framework.

Sector Analysis

The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' falls within the broader Information Technology (IT) and Defense sectors. This contract represents spending on specialized software development and integration, likely for advanced defense applications. The IT services market is vast, with significant government procurement. Benchmarking requires comparing this contract's value and terms to other custom programming services procured by the DoD or other federal agencies for similar complexity and scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to L3 Technologies, Inc., a large defense contractor, suggests that the primary focus was on specialized capabilities rather than small business participation. This means the direct economic impact on the small business ecosystem for this specific contract is likely minimal, unless L3 Technologies voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency is limited due to the sole-source nature. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected. The effectiveness of oversight depends heavily on the diligence of the contracting officer and the program team in monitoring performance and costs.

Related Government Programs

Defense Information Technology Contracting
Custom Software Development Services
Aerospace and Defense Contractor Spending
Specialized Military Technology Procurement
Air Force IT Services

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to L3 TECHNOLOGIES, INC.. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

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 $28.3 million.

What is the period of performance?

Start: 2022-10-21. End: 2025-08-31.

What is the specific nature of the 'Big Safari' program and why was it deemed suitable for a sole-source award?

The 'Big Safari' program is an Air Force Materiel Command initiative focused on rapidly developing and fielding highly specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. These programs often involve cutting-edge technology, unique operational requirements, and sensitive national security implications. Sole-source awards for 'Big Safari' projects are typically justified based on the unique capabilities of a specific contractor, the need for rapid deployment of novel technologies, or the requirement to leverage existing proprietary systems and expertise. Detailed justifications are usually classified or restricted due to the nature of the program, making public assessment of the necessity for sole-sourcing challenging.

How does the cost-plus-fixed-fee (CPFF) contract structure compare to other contract types for custom programming services, and what are the associated risks?

The Cost-Plus-Fixed-Fee (CPFF) contract type is used when the scope of work is not precisely defined, allowing for flexibility. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but provides flexibility for evolving requirements. Risks include potential cost overruns if the contractor's costs escalate beyond initial estimates, and the government must diligently monitor and audit costs to ensure reasonableness. For custom programming, where requirements can change, CPFF can be appropriate, but it necessitates strong government oversight to manage risks effectively and ensure value.

What is L3 Technologies, Inc.'s track record with the Department of Defense, particularly in custom programming and specialized systems?

L3 Technologies, Inc. (now part of L3Harris Technologies) has a long and extensive history of contracting with the Department of Defense, providing a wide array of products and services, including advanced electronic systems, communications, and information technology solutions. They are a significant player in the defense industrial base, often involved in complex, high-technology programs. Their track record includes numerous contracts for custom development, integration, and sustainment of specialized systems, particularly in areas related to intelligence, surveillance, and reconnaissance (ISR), electronic warfare, and command and control. While specific performance details for individual contracts are often not public, their sustained presence and significant contract awards indicate a strong capability and established relationship with the DoD.

Are there any publicly available benchmarks for custom computer programming services (NAICS 541511) within the Department of Defense that could be used to assess the value of this contract?

Publicly available benchmarks for specific custom computer programming services (NAICS 541511) within the Department of Defense are scarce, especially for specialized programs like 'Big Safari.' General IT service benchmarks exist, but they often lack the granularity to assess highly specialized, sole-source defense contracts. The value of such contracts is heavily influenced by unique technical requirements, security protocols, and the specific expertise of the contractor. Without detailed statements of work and performance metrics, direct comparison is difficult. Agencies sometimes publish aggregated spending data or use internal cost models, but these are not typically accessible for detailed external analysis of individual contract value.

What are the potential implications of awarding a nearly $30 million contract solely to one large company on innovation within the defense IT sector?

Awarding a significant contract like this solely to one large company can have mixed implications for innovation. On one hand, it allows for deep investment and focused development within that company, potentially leading to rapid advancements in specific niche areas where they possess unique expertise. However, it also risks stifling broader innovation by limiting exposure to alternative approaches, technologies, and solutions that smaller or competing firms might offer. A sole-source award reduces the competitive pressure that often drives innovation and efficiency. Over-reliance on a few large contractors can also create vendor lock-in and reduce the overall dynamism and diversity of technological solutions available to the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

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: 1700 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,338,801

Exercised Options: $28,338,801

Current Obligation: $28,338,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862019G4035

IDV Type: BOA

Timeline