DoD Awards $32.8M for Aircraft Parts to L3Harris, Raising Oversight Concerns
Contract Overview
Contract Amount: $32,804,588 ($32.8M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2024-01-31
Contract Duration: 395 days
Daily Burn Rate: $83.0K/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 $32.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $32.8 million awarded. 2. L3Harris Technologies is the sole awardee, limiting competition. 3. Potential for taxpayer overpayment due to lack of competition. 4. Contract falls under 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $32.8 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this $32.8 million expenditure.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to the absence of competitive bidding. The Department of Defense relies on L3Harris for critical components, highlighting potential supply chain risks. Transparency in defense contracting is crucial, and sole-source awards warrant closer scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established contractor
Sector Analysis
This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks for similar sole-source contracts are often higher than competitive ones.
Small Business Impact
This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of the sole-source award is paramount.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price justification
- Supply chain dependency risk
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 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 $32.8 million.
What is the period of performance?
Start: 2023-01-01. End: 2024-01-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should provide detailed documentation supporting this decision. To ensure fair pricing, independent cost analysis and market research should be conducted, even in sole-source scenarios, to establish a reasonable price ceiling and benchmark against similar procurements.
What are the risks associated with relying on a single supplier for critical aircraft parts, especially in a sole-source context?
Sole-source reliance creates significant risks, including supply chain vulnerability, potential for price gouging, and lack of innovation. If L3Harris faces production issues or decides to increase prices significantly, the Department of Defense has limited recourse. This dependence can also hinder the development of alternative suppliers and reduce overall market competition in the long run.
How does this contract contribute to the overall effectiveness and readiness of the Air Force's aircraft fleet?
The effectiveness of this contract hinges on the quality and timely delivery of the awarded aircraft parts. Assuming L3Harris provides high-quality components as expected, it directly supports the operational readiness of the Air Force's fleet. However, the lack of competition raises questions about the long-term cost-effectiveness of maintaining this supply chain.
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: $32,804,588
Exercised Options: $32,804,588
Current Obligation: $32,804,588
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,077,775
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
Start Date: 2023-01-01
Current End Date: 2024-01-31
Potential End Date: 2024-01-31 00:00:00
Last Modified: 2024-08-25
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