DoD's $32.6M BIG SAFARI contract awarded to L3Harris for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $32,641,095 ($32.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-09-14

End Date: 2025-09-30

Contract Duration: 747 days

Daily Burn Rate: $43.7K/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 $32.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but doesn't guarantee optimal value without competition. 3. The duration of 747 days suggests a significant need for these aircraft parts. 4. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a specialized sector. 5. The award to a single large contractor may limit opportunities for smaller businesses in the supply chain. 6. Lack of competition is a key risk indicator for potential overpayment or suboptimal performance.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source nature and lack of publicly available comparable data for 'BIG SAFARI' specific components. The firm fixed-price structure provides some cost control, but without competitive bids, it's difficult to ascertain if the $32.6 million represents a fair market price. The absence of competition suggests potential for higher costs than if multiple vendors had vied for the contract. Further analysis would require access to internal DoD cost estimates or pricing data from similar sole-source awards.

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. The Department of Defense likely determined that only L3Harris Technologies Integrated Systems L.P. could fulfill the requirement, possibly due to proprietary technology, unique capabilities, or specific program needs under the 'BIG SAFARI' initiative. The lack of competition means there were no other bidders to compare against, which can hinder price discovery and potentially lead to less favorable pricing for the government.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without multiple bids, the government has less leverage to negotiate the lowest possible price, potentially resulting in higher overall spending.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially its operational units relying on the aircraft supported by these parts. The contract delivers essential 'Other Aircraft Parts and Auxiliary Equipment' crucial for maintaining aviation readiness. The geographic impact is primarily within Texas, where the contractor is located, but the ultimate impact is on Air Force operations nationwide. The contract supports jobs within L3Harris Technologies and its potential subcontractors, contributing to the aerospace manufacturing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of transparency in the procurement process due to no-bid award.
Potential for cost overruns if pricing was not rigorously negotiated.
Limited opportunities for small businesses to participate in this specific award.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established contractor (L3Harris) suggests a degree of reliability.
Contract supports critical national defense needs for the Air Force.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized segment of the broader aerospace and defense industry. This sector is characterized by high technical requirements, stringent quality control, and often involves proprietary technologies. The market size for such specialized parts can be significant, driven by the operational needs of military and commercial aviation. L3Harris Technologies is a major player in this space. Comparable spending benchmarks are difficult to establish without more specific details on the parts procured, but overall defense spending on aircraft components is substantial.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. The award to a large prime contractor like L3Harris may limit direct opportunities for small businesses to supply these specific parts. However, L3Harris may engage small businesses indirectly through its supply chain, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem for this particular award appears minimal based on the information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

BIG SAFARI Program
Air Force Aircraft Maintenance Contracts
Aerospace Parts Procurement
Defense Industrial Base Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 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 $32.6 million.

What is the period of performance?

Start: 2023-09-14. End: 2025-09-30.

What is the 'BIG SAFARI' program, and what is L3Harris's role within it?

The 'BIG SAFARI' (Broad Area Ground Support, Aviation, and Related Production Integration) program is an Air Force initiative focused on providing rapid, agile, and affordable acquisition solutions for intelligence, surveillance, and reconnaissance (ISR) and other specialized aviation capabilities. L3Harris Technologies Integrated Systems L.P. is a significant defense contractor known for its work in avionics, electronic warfare, and communication systems, often supporting complex platforms and modifications. Within 'BIG SAFARI,' L3Harris likely provides specialized components, integration services, or modifications for aircraft platforms, contributing to the program's goal of enhancing ISR and other critical mission capabilities for the Air Force.

How does the firm fixed-price contract type mitigate risk for the government in this sole-source award?

A firm fixed-price (FFP) contract establishes a price that is not subject to adjustment based on the contractor's cost experience. For the government, this mitigates the risk of cost overruns, as the contractor assumes the responsibility for any expenses exceeding the agreed-upon price. In a sole-source scenario like this 'BIG SAFARI' contract, FFP is crucial because it provides a degree of cost certainty. However, it does not guarantee the 'best' price, as the absence of competition means the initial price might be higher than in a competed environment. The government's risk is primarily shifted to cost overruns, while the risk of paying a non-competitive price remains.

What are the potential implications of awarding a $32.6 million contract solely to L3Harris for aircraft parts?

Awarding a contract of this magnitude solely to L3Harris has several implications. Firstly, it concentrates a significant portion of spending with one large contractor, potentially limiting opportunities for other suppliers, including small businesses, to participate directly. Secondly, the sole-source nature means the government did not benefit from competitive bidding, which could result in a higher price than if multiple vendors had competed. This raises questions about value for money. On the positive side, it ensures a single point of accountability for the delivery of these specific aircraft parts and leverages L3Harris's established expertise and capabilities within the 'BIG SAFARI' program.

Given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification, what kind of items might this contract cover?

The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is broad and suggests items beyond standard engine or airframe components. This could include specialized systems such as communication equipment, navigation aids, electronic warfare components, sensor integration parts, unique structural modifications, or auxiliary power units. Given the context of the 'BIG SAFARI' program, which focuses on ISR and specialized aviation, the parts are likely critical for enhancing or maintaining the mission capabilities of Air Force aircraft, rather than routine operational parts.

What historical spending patterns exist for the 'BIG SAFARI' program or similar sole-source aircraft parts contracts?

Historical spending patterns for the 'BIG SAFARI' program are not publicly detailed in a way that allows for direct comparison of this specific award. However, the Department of Defense consistently spends billions annually on aircraft parts, modifications, and sustainment. Sole-source awards for specialized or proprietary components are not uncommon in defense contracting, particularly for unique systems or when only one vendor possesses the necessary technology or expertise. Analysis of past sole-source awards in similar categories often reveals higher average prices compared to competed contracts, underscoring the importance of rigorous justification and negotiation for such awards.

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: $32,641,095

Exercised Options: $32,641,095

Current Obligation: $32,641,095

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