DoD's $29.5M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $29,533,069 ($29.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2024-01-31

Contract Duration: 405 days

Daily Burn Rate: $72.9K/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: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $29.5 million for aircraft parts. 2. Awarded to L3Harris Technologies, a major defense contractor. 3. No competition was utilized for this award, raising potential value concerns. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $29.5 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft part contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $29.5 million contract could result in suboptimal pricing and reduced taxpayer value.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on L3Harris for critical aircraft components. This award highlights potential areas for improved procurement strategies within the Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Award to established contractor
Supports aircraft readiness

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for maintaining military aviation capabilities. Spending benchmarks in this area can vary widely based on specialization and technological complexity.

Small Business Impact

This contract was awarded to L3Harris Technologies, a large business. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for their participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received the best possible value. Further review of the justification for 'not competed' is recommended.

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
Potential for inflated pricing
Limited oversight on price reasonableness
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2022-12-22. End: 2024-01-31.

What was the specific justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The price reasonableness is usually determined through cost analysis, historical pricing, or market research, though the absence of competition inherently limits the robustness of this assessment.

What are the potential risks associated with relying on a single supplier for critical aircraft parts, especially in a sole-source scenario?

Risks include price escalation, supply chain disruptions if the sole supplier faces issues, reduced innovation due to lack of competitive pressure, and potential for complacency in quality or service. This dependence can also limit the government's leverage in negotiations.

How does this sole-source award align with the Department of Defense's stated goals for promoting competition and ensuring cost-effectiveness in its procurements?

Sole-source awards generally run counter to goals of maximizing competition and achieving cost savings. While exceptions exist for valid reasons, such awards necessitate strong justification to demonstrate they are in the government's best interest and do not represent a missed opportunity for better value.

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: 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: $46,760,689

Exercised Options: $46,760,689

Current Obligation: $29,533,069

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $12,494,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline