DoD's $36.2M Big Safari contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $36,208,385 ($36.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-12-27

End Date: 2024-02-08

Contract Duration: 408 days

Daily Burn Rate: $88.7K/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 $36.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $36.2 million represents a significant investment in specialized aircraft components. 2. The sole-source award to L3Harris Technologies Integrated Systems L.P. raises questions about potential price inflation and limited market engagement. 3. The 'NOT COMPETED' status is a key risk indicator, suggesting a lack of market research or a pre-determined vendor. 4. The contract duration of 408 days (approximately 13.5 months) indicates a medium-term need for these specialized parts. 5. The award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, highlighting a niche but critical segment of the aerospace supply chain. 6. The contract's performance is tied to the Department of the Air Force, suggesting a direct link to operational readiness or specific aircraft programs.

Value Assessment

Rating: questionable

Benchmarking the value of this $36.2 million contract is challenging without detailed cost breakdowns or comparisons to similar sole-source awards for specialized aircraft parts. The absence of competition means there's no direct market price discovery to assess if L3Harris Technologies Integrated Systems L.P. offered competitive pricing. The contract's value is substantial, but its value-for-money proposition is inherently uncertain due to the lack of competitive bidding. Further analysis would require understanding the specific nature of the 'BIG SAFARI' components and their market availability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or proprietary rights to fulfill the requirement. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and terms. It also suggests that the Department of the Air Force may have had specific reasons for selecting L3Harris Technologies Integrated Systems L.P. without exploring other potential suppliers.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without competing the award, there is a reduced likelihood of achieving cost savings that could arise from multiple bids.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operational readiness, through the provision of critical aircraft parts. The services delivered involve the manufacturing and supply of specialized aircraft components under the 'BIG SAFARI' designation. The geographic impact is primarily within Texas (st: TX, sn: TEXAS), where L3Harris Technologies Integrated Systems L.P. is located, though the ultimate use of the parts is with the Air Force. Workforce implications include potential job creation or retention at L3Harris's Texas facility, supporting specialized manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Sole-source awards can create vendor lock-in, reducing future flexibility and bargaining power.
Transparency concerns arise from the 'NOT COMPETED' status, making it difficult to assess the justification for not seeking other bids.
The specific nature of 'BIG SAFARI' components is not detailed, making it hard to evaluate the necessity of a sole-source award.

Positive Signals

Award to an established contractor, L3Harris Technologies Integrated Systems L.P., may indicate a reliance on proven capabilities for critical systems.
The contract supports the Department of Defense, aligning with national security objectives.
The fixed-price contract type (FIRM FIXED PRICE) provides cost certainty for the government, assuming the scope is well-defined.

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, such as those under the 'BIG SAFARI' program, often involve proprietary technology or highly specialized manufacturing processes. The market for such components can be limited, sometimes leading to sole-source or limited competition awards. Spending in this sector is driven by defense modernization, operational readiness, and technological advancement. Comparable spending benchmarks would typically involve analyzing other sole-source awards for similar specialized aircraft components within the DoD.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides (ss: false, sb: false). Therefore, the direct impact on small businesses through this specific award is likely minimal. However, L3Harris Technologies Integrated Systems L.P., as a large prime contractor, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on L3Harris's internal policies and the specific requirements of the 'BIG SAFARI' components. Without a competitive process, there's less opportunity for small businesses to directly bid on this prime contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The 'NOT COMPETED' status suggests that a justification for other than full and open competition was likely required and approved, which should be documented and subject to review. Transparency regarding the rationale for the sole-source award is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

BIG SAFARI Program
Department of the Air Force Aircraft Procurement
Specialized Aerospace Components
Defense Industrial Base Contracts
L3Harris Technologies Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 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 $36.2 million.

What is the period of performance?

Start: 2022-12-27. End: 2024-02-08.

What specific justification was provided for awarding the 'BIG SAFARI' contract to L3Harris Technologies Integrated Systems L.P. on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards require a formal justification for other than full and open competition (JOFOC). Common justifications include that only one responsible source is available or capable of providing the required supplies or services, or that the property or services are unique. For the 'BIG SAFARI' contract, the justification would likely center on L3Harris possessing unique technology, intellectual property, or specialized manufacturing capabilities essential for these specific aircraft parts that cannot be replicated by other firms. Without access to the official JOFOC documentation, the precise rationale remains speculative, but it would need to demonstrate why competition was not feasible or advantageous.

How does the $36.2 million contract value compare to historical spending on similar 'BIG SAFARI' components or related aircraft parts by the Department of the Air Force?

Comparing the $36.2 million value requires historical data on 'BIG SAFARI' components or analogous specialized aircraft parts procured by the Air Force. The provided data does not include this historical context. However, given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification and the sole-source nature, this amount suggests a significant procurement of non-standard or highly specialized items. To benchmark effectively, one would need to analyze past sole-source or competitively awarded contracts for similar niche components, considering factors like quantity, complexity, and technological sophistication. A substantial deviation from historical norms, especially without clear justification, could signal potential overpricing or scope creep.

What are the primary risks associated with awarding a $36.2 million contract without competition, and how might they be mitigated?

The primary risks of a sole-source award include inflated pricing due to lack of competitive pressure, potential for reduced innovation, and limited market visibility. Taxpayers may bear a higher cost than if the contract were competed. Mitigation strategies could involve robust government cost analysis, detailed technical evaluations to ensure the proposed solution is necessary and efficient, and strong contract management to oversee performance and prevent scope creep. Furthermore, the government could explore opportunities for future competition by encouraging market research into alternative suppliers or technologies, or by breaking down future requirements into smaller, more competitive packages if feasible.

What is the track record of L3Harris Technologies Integrated Systems L.P. in fulfilling Department of Defense contracts, particularly for specialized aircraft components?

L3Harris Technologies Integrated Systems L.P. is a significant defense contractor with a substantial history of fulfilling various DoD contracts. While specific performance metrics for this 'BIG SAFARI' contract are not yet available due to its recent award (ending Feb 2024), the company's broader track record generally involves complex systems integration, avionics, and aerospace components. Past performance reviews, contract award histories, and any reported issues or successes on similar programs would provide a more detailed picture. A review of their contract performance ratings and any past disputes or contract terminations would be essential for a comprehensive assessment of their reliability in delivering specialized defense systems.

How does the 'BIG SAFARI' program fit within the broader context of the Department of the Air Force's modernization or sustainment strategies?

The 'BIG SAFARI' program, often associated with special operations forces (SOF) or intelligence, surveillance, and reconnaissance (ISR) platforms, typically supports unique and evolving mission requirements. Contracts like this one for specialized aircraft parts are crucial for maintaining the operational readiness and technological edge of these specific assets. Whether this contract is for new development, sustainment of existing platforms, or upgrades, it directly contributes to the Air Force's ability to execute specialized missions. Understanding the specific role of the 'BIG SAFARI' components within the broader fleet or mission set would clarify its strategic importance and how it aligns with the Air Force's overall modernization and sustainment objectives.

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: $36,208,385

Exercised Options: $36,208,385

Current Obligation: $36,208,385

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