DoD's $12.66M Big Safari contract to L3Harris for aircraft parts awarded without competition

Contract Overview

Contract Amount: $12,661,169 ($12.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, potentially leading to higher costs if not managed closely. 2. The 'Big Safari' program suggests a focus on rapid, specialized acquisition for unique mission needs. 3. Lack of competition raises concerns about price discovery and potential for inflated costs. 4. Contract duration of 1095 days indicates a significant, long-term need for these aircraft parts. 5. Awarded to a single, large defense contractor, potentially limiting opportunities for smaller, specialized firms. 6. The specific nature of 'Big Safari' acquisitions often involves classified or highly sensitive technologies.

Value Assessment

Rating: questionable

Benchmarking value for this contract is challenging due to the 'Big Safari' program's specialized and often classified nature. Without competitive bids, it's difficult to assess if L3Harris Technologies Integrated Systems L.P. provided the best possible price. The cost-plus-fixed-fee structure necessitates robust oversight to ensure costs remain reasonable and do not escalate beyond initial projections. Comparing this to similar sole-source aircraft parts contracts is difficult without more specific details on the parts and their intended use.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor can meet the specific requirements, often due to proprietary technology, unique capabilities, or urgent national security needs. The absence of multiple bidders means the government did not benefit from price negotiation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for this contract due to the lack of competition. Without bids from other companies, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are likely elements within the Department of the Air Force requiring specialized aircraft parts under the 'Big Safari' program. The services delivered involve the manufacturing and supply of aircraft parts, crucial for maintaining and potentially upgrading specific Air Force assets. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, but the ultimate impact is on Air Force operational readiness. Workforce implications include employment at L3Harris and its potential subcontractors, contributing to the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost-plus-fixed-fee contract type requires diligent oversight to control expenditures.
Lack of transparency inherent in 'Big Safari' program makes detailed value assessment difficult.
No small business set-aside indicates potential missed opportunities for smaller firms in this contract.

Positive Signals

Award to an established contractor like L3Harris suggests a degree of confidence in their capabilities.
The 'Big Safari' program is designed to address unique and often urgent requirements, implying critical mission support.
Contract duration suggests a sustained need and commitment to supporting specific Air Force assets.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The 'Big Safari' program specifically focuses on rapid acquisition of non-standard aircraft and systems, often involving advanced technologies. Spending in this area is critical for maintaining a technological edge and operational readiness for military aviation.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate. This suggests that the specific requirements of the 'Big Safari' program were deemed to be met only by L3Harris Technologies Integrated Systems L.P., potentially overlooking avenues for small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and the 'Big Safari' program's potential for classified elements, transparency might be limited. Accountability would be driven by the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and auditing of costs incurred by L3Harris. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Big Safari Program
Air Force Special Operations Command
Aircraft Component Manufacturing
Defense Logistics Agency

Risk Flags

Sole-source award
Cost-plus contract type
Lack of transparency in 'Big Safari' program
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 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 $12.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is the specific nature of the 'Big Safari' program and why was this contract awarded sole-source?

The 'Big Safari' program is an Air Force initiative focused on the rapid acquisition and modification of aircraft and systems to meet unique, often urgent, operational requirements. These acquisitions frequently involve advanced or specialized technologies that may not be readily available through traditional procurement channels. Contracts under 'Big Safari' are often awarded sole-source because the specific capabilities or technologies required are believed to be possessed by only one or a very limited number of contractors, or due to the highly classified nature of the mission requirements. This particular contract for aircraft parts likely supports a specific, specialized aircraft modification or upgrade under the 'Big Safari' umbrella, where L3Harris was identified as the sole capable provider.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements in terms of value for money?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. While this structure can be beneficial for complex projects where cost estimation is difficult or for acquiring innovative technologies where risks are high, it generally offers less value for money compared to fixed-price contracts. With CPFF, the government bears the risk of cost overruns, and the contractor has less incentive to control costs tightly, as their profit (the fixed fee) remains constant regardless of the final cost. This necessitates robust government oversight and auditing to ensure costs are reasonable and allocable to the contract. Fixed-price contracts, conversely, shift cost risk to the contractor and incentivize efficiency, often resulting in better price certainty and value for the government when requirements are well-defined.

What are the potential risks associated with a sole-source award for aircraft parts?

The primary risk of a sole-source award is the lack of price competition, which can lead to inflated costs for the government compared to what might be achieved in an open market. Without competing bids, there is less pressure on the contractor to offer the most cost-effective solution. Additionally, sole-source awards can stifle innovation by limiting opportunities for other companies to develop and offer competing products or services. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially facing future pricing power or supply chain vulnerabilities. Transparency is often reduced, making it harder to scrutinize the justification for the sole-source award and the reasonableness of the price.

What is the significance of the contract being awarded to L3Harris Technologies Integrated Systems L.P. within the defense sector?

L3Harris Technologies is a major defense contractor known for its expertise in areas such as aerospace systems, communications, and electronic warfare. Awarding this contract to them suggests that the specific aircraft parts or systems required fall within their core competencies and established capabilities. Their significant presence in the defense industrial base means they possess the infrastructure, security clearances, and technical expertise often necessary for specialized programs like 'Big Safari'. This award aligns with the trend of consolidating defense contracts among a few large, capable prime contractors who can manage complex, integrated systems and supply chains.

How does the duration of the contract (1095 days) impact the assessment of its value and risk?

A contract duration of 1095 days (three years) indicates a significant, long-term requirement for the specified aircraft parts. This extended period suggests that these parts are critical for sustained operations or a multi-year program. From a value perspective, a longer duration can sometimes allow for economies of scale or more stable production planning, potentially leading to better unit prices over time if managed effectively. However, it also increases the government's exposure to potential cost increases due to inflation or changes in material costs, especially under a CPFF arrangement. The extended timeline also means that risks associated with technology obsolescence or the emergence of superior alternatives are present, requiring careful program management and potential review points.

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 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: 7500 MAEHR RD, WACO, TX, 76705

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

Financial Breakdown

Contract Ceiling: $13,258,669

Exercised Options: $13,258,669

Current Obligation: $12,661,169

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $1,997,255

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862020G4050

IDV Type: BOA

Timeline