DoD's $238M Big Safari contract awarded to L3Harris for engineering services, with limited competition

Contract Overview

Contract Amount: $238,367,409 ($238.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-03-30

End Date: 2024-11-30

Contract Duration: 611 days

Daily Burn Rate: $390.1K/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: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $238.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value of $238.4 million for engineering services. 2. Awarded to L3Harris Technologies Integrated Systems L.P. 3. Contract falls under the 'Engineering Services' NAICS code. 4. Performance period spans from March 2023 to November 2024. 5. This is a delivery order under a larger contract vehicle. 6. The contract was not competed, indicating limited or sole-source procurement. 7. The contract type is Firm Fixed Price, providing cost certainty. 8. The primary place of performance is Texas.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the underlying contract it was issued against. However, the total value of $238.4 million for engineering services over approximately 20 months suggests a significant investment. Without comparative data on similar 'Big Safari' program components or engineering services for advanced aerospace systems, a definitive value-for-money assessment is difficult. The firm fixed-price nature offers some cost predictability, but the lack of competition raises concerns about whether the best possible price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition scenario. This means that L3Harris Technologies Integrated Systems L.P. was likely the only or preferred vendor for this specific requirement. The lack of a competitive bidding process limits the government's ability to explore alternative solutions or negotiate pricing based on market forces. Such awards are typically justified by unique capabilities, existing system integration, or urgent needs where only one vendor can fulfill the requirement.

Taxpayer Impact: When a contract is not competed, taxpayers may not benefit from the cost savings that can arise from competitive bidding. The government may pay a premium if alternative vendors could have offered similar services at a lower cost.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operational units that rely on the 'Big Safari' program's advanced aerospace capabilities. The services delivered are engineering support crucial for the development, integration, and sustainment of complex defense systems. The geographic impact is primarily in Texas, where the place of performance is located, potentially supporting local jobs and businesses. Workforce implications include the employment of skilled engineers and technical personnel by L3Harris to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if this is a critical component of a larger system.

Positive Signals

Award to an established contractor with likely relevant expertise in 'Big Safari' programs.
Firm Fixed Price contract provides cost certainty for this delivery order.
Clear performance period (March 2023 - November 2024) allows for focused execution.

Sector Analysis

The 'Big Safari' program is a well-known initiative within the Department of Defense, focused on rapidly developing and fielding special operations and tactical systems. This contract for engineering services fits within the broader aerospace and defense sector, specifically supporting advanced technology development and integration. The market for such specialized engineering services is often concentrated among a few key defense contractors possessing the requisite security clearances and technical expertise. Comparable spending benchmarks would typically be found within other 'Big Safari' contracts or similar advanced system development efforts, which are often classified or highly sensitive.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, L3Harris Technologies Integrated Systems L.P., the direct impact on small business set-asides is minimal. However, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which L3Harris will utilize small business subcontractors for this specific delivery order will determine the indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Specific oversight mechanisms would depend on the nature of the 'Big Safari' program and the underlying contract vehicle. Transparency is limited due to the sole-source nature and potential classification of the 'Big Safari' program. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Big Safari Program
Special Operations Forces Support
Aerospace Engineering Services
Advanced Technology Development
Defense Systems Integration

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns if scope is not well-defined

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $238.4 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 $238.4 million.

What is the period of performance?

Start: 2023-03-30. End: 2024-11-30.

What is the specific nature of the engineering services provided under this $238 million delivery order for the 'Big Safari' program?

The provided data does not detail the specific engineering services. However, given the 'Big Safari' program's focus on rapidly developing and fielding special operations and tactical systems, these services likely encompass areas such as system design, integration, testing, modification, and sustainment of complex aerospace platforms or payloads. The NAICS code 541330 (Engineering Services) further supports this, indicating a broad range of technical and engineering support. Without access to the contract statement of work or related documentation, the precise technical activities remain unspecified.

Why was this contract awarded on a sole-source basis to L3Harris Technologies Integrated Systems L.P. instead of being competed?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. Justifications for sole-source procurements typically include situations where only one responsible source can provide the required supplies or services, such as when the service is unique, highly specialized, or essential for interoperability with existing systems. For the 'Big Safari' program, L3Harris may possess unique intellectual property, specialized facilities, or critical expertise directly related to the specific system or technology being supported, making competition impractical or detrimental to program objectives. A formal justification document would typically outline these reasons.

How does the $238.4 million contract value compare to historical spending on similar 'Big Safari' program components or engineering services?

Direct comparison of this $238.4 million delivery order to historical spending is difficult without more context on the specific 'Big Safari' component it supports and the duration of the underlying contract. The 'Big Safari' program often involves significant investments in rapidly evolving technologies. While $238.4 million is a substantial amount for engineering services, it may be within the expected range for advanced aerospace system development or modification efforts. Historical data on similar, non-classified 'Big Safari' contracts or comparable defense engineering services contracts would be needed for a more precise benchmark.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with sole-source awards of this magnitude include potential overpayment due to the lack of competitive pricing, reduced innovation from a lack of market pressure, and the risk of vendor lock-in. Taxpayers may not receive the best value for their money if alternative solutions or more cost-effective approaches were available but not explored. Furthermore, reliance on a single source can create vulnerabilities if that contractor faces financial difficulties, operational issues, or fails to meet performance expectations. Robust oversight and clear performance metrics become even more critical in sole-source situations.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense and specifically with the 'Big Safari' program?

L3Harris Technologies is a major defense contractor with a long history of supporting the Department of Defense across various platforms and programs. While specific details on their involvement with the 'Big Safari' program for this particular delivery order are not provided, L3Harris has a known presence in intelligence, surveillance, and reconnaissance (ISR) systems, electronic warfare, and advanced communication technologies, all of which are relevant to 'Big Safari' objectives. Their extensive experience suggests a strong capability to execute complex engineering tasks for such programs. A deeper dive into their contract history with DoD would reveal the extent and nature of their prior work.

What are the implications of the firm fixed-price contract type for cost control and risk allocation?

A Firm Fixed Price (FFP) contract type means that the contractor, L3Harris Technologies, is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the primary cost risk from the government to the contractor. For the government, FFP provides cost certainty and predictability, making budgeting easier. It incentivizes the contractor to control costs efficiently to maximize profit. However, if the scope of work is not well-defined or changes significantly, it can lead to disputes or change orders, potentially increasing the overall cost. For this delivery order, the FFP structure aims to cap the government's expenditure at the awarded amount.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: 1655 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $363,349,032

Exercised Options: $238,367,409

Current Obligation: $238,367,409

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $15,847,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862019G4006

IDV Type: BOA

Timeline