DoD's $38.5M Big Safari contract awarded to L3Harris for aircraft parts, raising questions about competition

Contract Overview

Contract Amount: $38,495,674 ($38.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2025-09-30

Contract Duration: 739 days

Daily Burn Rate: $52.1K/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 $38.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $38.5 million represents a significant investment in specialized aircraft components. 2. Awarded on a sole-source basis, the lack of competition may limit price discovery and potentially increase costs. 3. The duration of the contract, spanning over two years, suggests a need for sustained support or development. 4. The 'Big Safari' program often involves rapid acquisition of advanced capabilities, implying a focus on technological advantage. 5. The absence of small business set-asides indicates that prime contractor L3Harris is expected to perform the majority of the work. 6. Performance risk is moderate given the specialized nature of the work and the contractor's experience in defense systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'Big Safari' program's objectives and the exact nature of the aircraft parts. However, the $38.5 million price tag for specialized components over two years warrants scrutiny, especially given the sole-source award. Without competitive bidding, it's difficult to ascertain if this represents a fair market price or if taxpayers are overpaying. L3Harris is a large defense contractor with a history of significant awards, but this specific contract's value relative to similar specialized aircraft part procurements is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was considered. This approach is typically used when only one source possesses the necessary capabilities, proprietary technology, or when urgency precludes a competitive process. The lack of competition means there was no opportunity for other qualified companies to bid, potentially limiting the government's ability to secure the best possible price and terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiations and may result in less favorable terms than could be achieved through open competition.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially specific operational units requiring advanced aircraft components under the 'Big Safari' program. The services delivered involve the provision of specialized aircraft parts and auxiliary equipment, crucial for maintaining and enhancing aviation capabilities. The geographic impact is primarily centered around the contractor's facilities in Texas and the operational bases where these aircraft are deployed. Workforce implications include employment opportunities at L3Harris and its subcontractors, particularly in specialized manufacturing and engineering roles within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of parts.

Positive Signals

Award to a known, large defense contractor with established capabilities.
Contract supports the 'Big Safari' program, often associated with critical national security needs.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long product development cycles. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The 'Big Safari' program itself is a well-known Air Force initiative focused on rapid acquisition of special operations and intelligence, surveillance, and reconnaissance (ISR) aircraft. Spending in this area is driven by technological advancements and evolving mission requirements, with major defense contractors like L3Harris being key players.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The prime contractor, L3Harris, is a large corporation, suggesting that the work will be performed internally or through large business subcontractors. This limits opportunities for small businesses to participate in this specific procurement and contribute to the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The 'Big Safari' program often involves specialized oversight due to its rapid acquisition nature. Transparency is limited by the sole-source award, but contract performance, delivery schedules, and payment milestones would be monitored. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Big Safari Program
Aircraft Parts Manufacturing
Defense Procurement
Special Operations Aviation
ISR Aircraft Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding specific 'Big Safari' program needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 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 $38.5 million.

What is the period of performance?

Start: 2023-09-22. End: 2025-09-30.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this sole-source designation is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as only one responsible source being available, or when a compelling urgency exists that precludes competition. For the 'Big Safari' program, which often deals with highly specialized or rapidly evolving technologies, justifications might include proprietary data, unique technical expertise held by a single contractor, or the need for immediate deployment of critical capabilities that cannot be met through a lengthy competitive process. Further investigation into the contract's official justification documentation would be required to ascertain the precise reasons.

How does the $38.5 million contract value compare to historical spending on similar 'Big Safari' program components?

Comparing the $38.5 million value of this specific contract to historical spending on similar 'Big Safari' program components is difficult without access to detailed historical procurement data for the 'Big Safari' program. The 'Big Safari' program is known for acquiring specialized and often unique capabilities, meaning component costs can vary significantly based on technological complexity, quantity, and specific mission requirements. While $38.5 million is a substantial sum, its relative value depends heavily on the scope of work, the technological sophistication of the aircraft parts, and the duration of the contract (739 days). Without comparable contract data for similar parts or systems acquired under 'Big Safari,' a direct benchmark is not feasible from the provided information.

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

Sole-source awards for specialized aircraft parts carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the government does not benefit from price discovery driven by multiple offers. Secondly, there's a risk of reduced innovation and efficiency, as the sole contractor may face less pressure to improve processes or develop cost-saving measures. Thirdly, it can create vendor lock-in, making it difficult and costly to switch to alternative suppliers in the future, especially if the parts are highly customized or proprietary. Finally, without competitive scrutiny, there's an increased risk of inadequate quality control or performance issues if the contractor is not sufficiently incentivized to meet stringent standards.

What is L3Harris Technologies' track record with the 'Big Safari' program and similar defense contracts?

L3Harris Technologies is a major defense contractor with a significant track record in supporting various U.S. military programs, including those related to intelligence, surveillance, and reconnaissance (ISR) and special operations, which are often associated with the 'Big Safari' program. While specific contract details for 'Big Safari' are often classified or sensitive, L3Harris has a history of delivering complex systems, avionics, and integrated solutions for military aircraft. Their experience typically encompasses advanced manufacturing, systems integration, and sustainment support. Given their size and established presence in the defense sector, it is probable they have been a frequent participant in 'Big Safari' related procurements, leveraging their expertise in areas like electronic warfare, communications, and sensor integration.

What are the implications of this contract being awarded as 'FIRM FIXED PRICE'?

The 'FIRM FIXED PRICE' (FFP) contract type signifies that L3Harris Technologies is obligated to complete the work for a predetermined, fixed price, regardless of the actual costs incurred. This contract type offers the greatest cost certainty for the government, as the total price is established upfront and is not subject to upward adjustment based on the contractor's performance costs. For the government, this shifts the risk of cost overruns to the contractor. However, it also means that the contractor must accurately estimate all costs and risks associated with fulfilling the contract. If the contractor underestimates costs, their profit margin will decrease; if they overestimate, they may realize a higher profit. This structure incentivizes the contractor to control costs and perform efficiently to maximize their profit.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $38,495,674

Exercised Options: $38,495,674

Current Obligation: $38,495,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline