L3Harris Technologies awarded $35.5M for BIG SAFARI, a sole-source contract for aircraft parts

Contract Overview

Contract Amount: $35,482,552 ($35.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-11-08

End Date: 2023-12-31

Contract Duration: 418 days

Daily Burn Rate: $84.9K/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: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant award value suggests a critical or specialized need for these aircraft parts. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of over a year indicates a sustained requirement. 5. The award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. Texas is the state of performance, potentially impacting local economies and workforce.

Value Assessment

Rating: fair

The contract value of $35.5 million for BIG SAFARI is substantial. Without specific benchmarks for this particular system or its components, a direct value-for-money assessment is challenging. However, the sole-source nature of the award raises concerns about potential overpricing compared to a competitive environment. Further analysis would require understanding the criticality of the BIG SAFARI system and the availability of alternative solutions or contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when there is an urgent need that cannot be met through full and open competition. The lack of multiple bidders means that price discovery through competition was not leveraged, potentially leading to a higher price than if multiple companies had vied for the contract.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government relied on negotiation to establish a fair price, which can be less effective than market forces in driving down costs.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical aircraft parts for the BIG SAFARI system. This contract supports the operational readiness and maintenance of specific military aircraft. The geographic impact is concentrated in Texas, where the contract is being performed. Workforce implications may include specialized manufacturing and technical roles within L3Harris Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification could obscure potential alternatives.
Dependence on a single contractor for critical aircraft parts poses a supply chain risk.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Award to an established defense contractor suggests a level of technical capability and reliability.
Contract duration indicates a stable, long-term need for the supplied parts.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized military aircraft components is often characterized by high barriers to entry due to technical expertise, security clearances, and proprietary technology. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the BIG SAFARI system, but defense spending on aircraft sustainment and modernization is a significant portion of the overall defense budget.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, L3Harris Technologies, is a large defense corporation. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this award is not detailed here. The absence of a set-aside suggests that the primary focus was on securing the required capabilities from a specific provider, rather than prioritizing small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. The firm fixed-price contract type provides some level of cost control, as the contractor is incentivized to manage their expenses. Transparency regarding the sole-source justification and performance metrics would be crucial for assessing accountability.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Support
Aerospace Component Procurement
Military Aircraft Sustainment

Risk Flags

Sole-source award
Potential for higher costs due to lack of competition
Supply chain dependency on a single contractor
Classified nature of the program limits transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2022-11-08. End: 2023-12-31.

What is the specific nature of the BIG SAFARI system and why is it considered a sole-source requirement?

The BIG SAFARI (Broad Area Ground Surveillance and Persistent Reconnaissance Integration) program is a classified intelligence, surveillance, and reconnaissance (ISR) initiative within the Department of Defense. Specific details about the system's components and operational capabilities are classified. The sole-source justification likely stems from the highly specialized, proprietary, or classified nature of the aircraft parts required. This could involve unique technological specifications, integration challenges with existing classified systems, or a limited number of contractors possessing the necessary security clearances and technical expertise to produce or modify these specific components. Without access to classified documentation, the precise reasons for sole-source procurement remain undisclosed, but it is standard practice for highly sensitive or unique defense systems.

How does the $35.5 million award compare to historical spending on similar aircraft parts or systems?

Direct comparison of the $35.5 million award for BIG SAFARI to historical spending on similar aircraft parts is challenging due to the classified nature of the program and the specificity of the components. General spending on aircraft parts and auxiliary equipment for the Department of Defense can run into billions of dollars annually. However, this specific award represents a significant investment for a single contract. Without knowing the exact components being procured and their criticality, it's difficult to benchmark against other programs. If this award represents a substantial portion of the total lifecycle cost for these specific parts, it could indicate a high unit cost or a large quantity requirement. Further analysis would require access to historical procurement data for comparable classified ISR platforms or specific sub-systems.

What are the key performance indicators (KPIs) being tracked for this contract, and how is performance being measured?

While the provided data does not explicitly list Key Performance Indicators (KPIs) for this contract, typical performance metrics for aircraft parts contracts include on-time delivery, adherence to quality standards (e.g., defect rates, compliance with specifications), and technical performance of the parts themselves. Given the firm fixed-price nature of the contract, meeting delivery schedules and quality specifications are paramount for the contractor to achieve profitability. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring these aspects through inspections, audits, and performance reviews. Specific KPIs would be detailed in the contract's statement of work and performance requirements, which are not publicly available.

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

L3Harris Technologies, a major defense contractor, has a history of receiving both competitive and sole-source contracts from the Department of Defense. Sole-source awards are common for large defense companies that possess unique capabilities, advanced technologies, or are critical suppliers for specific platforms. L3Harris's extensive portfolio includes a wide range of defense systems, and their ability to secure sole-source contracts often reflects their established position, technological expertise, and existing relationships within the DoD. Analyzing their past performance on similar sole-source awards would involve reviewing contract databases for delivery performance, cost overruns (if any), and any associated contract disputes or modifications. Generally, large, established contractors like L3Harris are expected to have a robust track record, but specific performance on classified programs remains less transparent.

Are there any identified risks associated with the sole-source procurement of these aircraft parts, beyond potential cost implications?

Beyond potential cost implications, sole-source procurement of critical aircraft parts carries several risks. A primary concern is supply chain dependency; if L3Harris Technologies faces production issues, financial instability, or geopolitical disruptions, the availability of these essential components could be severely impacted, potentially grounding aircraft or delaying critical missions. Another risk is the potential for technological obsolescence if the sole-source provider does not innovate or adapt to evolving threats or requirements. Furthermore, the lack of competition can reduce the incentive for the contractor to invest in process improvements or cost-saving innovations. Finally, national security could be compromised if the sole-source provider experiences a significant security breach or if their intellectual property is not adequately protected.

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: FIRM FIXED PRICE (J)

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: $35,482,552

Exercised Options: $35,482,552

Current Obligation: $35,482,552

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $696,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862020G4050

IDV Type: BOA

Timeline