DoD's $25.8M Big Safari contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $25,877,840 ($25.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2025-03-31

Contract Duration: 730 days

Daily Burn Rate: $35.4K/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 $25.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $25.8 million represents a significant investment in specialized aircraft components. 2. Awarded on a non-competitive basis, raising questions about potential cost efficiencies and market alternatives. 3. The duration of 730 days suggests a need for sustained supply of these critical parts. 4. The 'Other Aircraft Parts' classification indicates a broad scope within aviation support. 5. L3Harris Technologies, a major defense contractor, is the sole recipient, highlighting industry consolidation. 6. The fixed-price contract type aims to control costs, but the lack of competition limits price discovery.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. While the firm fixed-price structure is intended to manage costs, the absence of competition means there's no direct market comparison to assess if $25.8 million represents optimal value for these specialized aircraft parts. Without alternative quotes or historical data on similar sole-source procurements for comparable components, it's difficult to definitively state if the pricing is competitive or if taxpayers are receiving the best possible deal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically reserved for situations where only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that L3Harris Technologies was the only entity considered, limiting the opportunity for price negotiation and potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the most economical option available in the market.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, which will receive critical aircraft parts. The services delivered include the manufacturing and supply of specialized components essential for aircraft operation and maintenance. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. Workforce implications may include job creation or sustained employment within L3Harris's manufacturing and support divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing and reduced value for taxpayer dollars.
Sole-source awards can stifle innovation by not encouraging new market entrants or alternative solutions.
Dependence on a single supplier can create supply chain risks if the contractor faces production issues or financial instability.

Positive Signals

Award to a known, established defense contractor like L3Harris suggests a degree of reliability and existing expertise.
The firm fixed-price contract type provides cost certainty for the government, mitigating budget overruns.
The 'Big Safari' program context implies these parts are for highly specialized, potentially classified, aviation systems where unique capabilities are paramount.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for specialized aircraft parts, especially within programs like 'Big Safari' which focuses on rapid development and acquisition of non-traditional capabilities, often involve unique technological requirements. L3Harris Technologies is a major player in this sector, known for its advanced systems integration and manufacturing capabilities. Spending in this area is critical for maintaining the operational readiness and technological superiority of military aviation assets.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The award to a large prime contractor like L3Harris suggests that the primary focus is on leveraging established capabilities rather than fostering small business participation. This could limit the direct economic benefits to the small business ecosystem within the defense supply chain for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, with potential involvement from the Air Force's Inspector General. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the performance clauses within the firm fixed-price contract, ensuring delivery of specified parts according to quality standards and timelines. Further oversight details would depend on the specific program management structure of 'Big Safari'.

Related Government Programs

Big Safari Program
Aircraft Parts and Components
Defense Logistics Agency (DLA) Contracts
Air Force Sustainment Contracts
Specialized Aviation Systems

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 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 $25.9 million.

What is the period of performance?

Start: 2023-04-01. End: 2025-03-31.

What is the historical spending pattern for the 'Big Safari' program and how does this contract compare?

The 'Big Safari' program, managed by the Air Force, is known for its rapid acquisition of non-traditional capabilities and often involves specialized, high-value contracts. Historical spending within 'Big Safari' can fluctuate significantly year-to-year, driven by evolving technological requirements and emerging threats. Without specific historical spending data for the 'Big Safari' program readily available, it's difficult to directly compare this $25.8 million contract. However, contracts of this magnitude for specialized aircraft parts are not uncommon within such rapid acquisition environments. The key differentiator here is the sole-source award, which may indicate a unique or proprietary need that aligns with the program's focus on specialized solutions rather than broad market competition.

What specific types of aircraft parts are being procured under this 'Big Safari' contract?

The provided data classifies the procurement under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413). This broad classification suggests the parts are not standard, off-the-shelf components but rather specialized items critical for specific aircraft systems or modifications. Given the 'Big Safari' program's mandate to develop and field non-traditional capabilities, these parts could range from unique sensor components, specialized structural elements for modified airframes, advanced communication or electronic warfare system parts, to custom-engineered subsystems. The exact nature of these parts is likely sensitive due to the program's focus on advanced and often classified technologies, hence the limited public detail and sole-source award.

What are the risks associated with a sole-source award of this magnitude for specialized aircraft parts?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated costs due to the lack of competitive bidding. Without market pressure, the contractor, L3Harris Technologies, may not have the same incentive to offer the most cost-effective solution. Another significant risk is supply chain vulnerability; the DoD becomes entirely dependent on a single supplier for these critical parts. If L3Harris experiences production delays, quality issues, or financial instability, it could severely impact the operational readiness of the affected aircraft. Furthermore, sole-source awards can limit opportunities for innovation by excluding potentially more advanced or cost-effective solutions from other vendors.

How does L3Harris Technologies' track record influence the assessment of this contract's risk and value?

L3Harris Technologies Integrated Systems L.P. is a well-established and significant defense contractor with a substantial track record in developing and supplying complex systems and components for military applications. Their experience in areas relevant to the 'Big Safari' program suggests a high likelihood of technical capability and product quality. This established track record can mitigate some risks associated with performance and delivery. However, it does not inherently address the value-for-money concerns stemming from the sole-source nature of this $25.8 million award. While the government may trust L3Harris to deliver, the lack of competition means the assessment of whether the price paid is optimal remains challenging without further benchmarking.

What are the potential long-term implications of awarding such contracts on a non-competitive basis within the defense sector?

Consistently awarding large contracts on a non-competitive basis within the defense sector can have several long-term implications. It can lead to market concentration, where a few large prime contractors dominate, potentially stifling competition and innovation from smaller or emerging companies. This can also reduce the government's leverage in price negotiations over time. Furthermore, it may create an environment where contractors become accustomed to sole-source awards, potentially reducing their focus on competitive bidding and cost efficiency. Over the long term, this could result in higher overall defense spending and potentially slower technological advancement if diverse market perspectives are not incorporated.

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: $25,877,840

Exercised Options: $25,877,840

Current Obligation: $25,877,840

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $427,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline