DoD's $34.5M Big Safari contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $34,461,749 ($34.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-12-28

End Date: 2026-08-31

Contract Duration: 1,342 days

Daily Burn Rate: $25.7K/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 $34.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded via a non-competitive process, raising questions about price discovery and potential value for money. 2. The fixed-price contract structure aims to control costs, but the lack of competition limits benchmarking. 3. Performance period extends over three years, suggesting a need for ongoing support and potential for future modifications. 4. The contract falls under the 'Other Aircraft Parts' manufacturing sector, indicating specialized defense-related needs. 5. L3Harris Technologies is a major defense contractor, suggesting established capabilities but also potential market concentration.

Value Assessment

Rating: questionable

Benchmarking the value of this $34.5 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or if L3Harris Technologies offered its best possible price. The firm-fixed-price structure provides some cost certainty, but the absence of competition means taxpayers may not be receiving the most economical solution. Further analysis would require access to internal cost data or comparable sole-source awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition limits the opportunity for multiple vendors to bid, which can drive down prices through market forces. Consequently, the government relies heavily on negotiation and oversight to ensure a fair price.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from the price reductions typically achieved through a competitive bidding process. This could result in a higher overall cost for the required aircraft parts.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving critical aircraft parts. The contract supports the operational readiness and maintenance of Air Force aircraft fleets. The geographic impact is primarily within Texas, where L3Harris Technologies is located, potentially supporting local jobs and the regional economy. The contract supports specialized manufacturing roles within the aerospace and defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can reduce transparency in pricing.
Limited visibility into alternative solutions or technological advancements from other vendors.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
L3Harris Technologies is an established defense contractor with proven capabilities.
Contract duration allows for sustained support and potential for long-term relationship building.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technological demands, stringent quality control, and significant government spending. The market size for defense-related aircraft parts is substantial, driven by the need for continuous maintenance, upgrades, and modernization of military fleets. L3Harris Technologies operates within this specialized niche, providing essential components that ensure the operational effectiveness of military aircraft.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like L3Harris Technologies suggests that the primary focus was on capability and existing relationships rather than fostering small business participation through this specific award mechanism. Further investigation into L3Harris's subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature, enhanced scrutiny on pricing and performance is expected. The contract's duration and value may also trigger reviews by the Government Accountability Office (GAO) if protests arise or by the Department of Defense Inspector General for performance audits. Transparency is limited by the non-competitive award, but contract modifications and performance reports should be accessible through federal procurement databases.

Related Government Programs

BIG SAFARI Program
Air Force Aircraft Maintenance Contracts
Defense Industrial Base Manufacturing
Sole-Source Defense Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in cost determination.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 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 $34.5 million.

What is the period of performance?

Start: 2022-12-28. End: 2026-08-31.

What is the track record of L3Harris Technologies in fulfilling similar sole-source contracts for the Department of Defense?

L3Harris Technologies, as a major defense contractor, has a history of fulfilling numerous contracts with the Department of Defense, including those awarded through various means, potentially including sole-source justifications. Analyzing their past performance on similar sole-source awards for aircraft parts or related systems would involve reviewing contract databases for on-time delivery, quality metrics, and any instances of disputes or overruns. A deep dive would require examining specific contract awards, their value, duration, and the nature of the goods or services provided. Generally, large contractors like L3Harris are expected to have robust systems for contract execution, but the specifics of their sole-source performance, particularly regarding pricing competitiveness and efficiency, would need detailed examination of historical data and performance reviews.

How does the $34.5 million value of this contract compare to other 'Other Aircraft Parts' contracts awarded by the Air Force?

Comparing the $34.5 million value of this 'BIG SAFARI' contract to other 'Other Aircraft Parts' contracts awarded by the Air Force requires a comprehensive analysis of historical procurement data. The 'BIG SAFARI' program itself often involves specialized, rapid acquisition of technologies, which can sometimes command higher prices due to urgency and unique requirements. However, in a broader context, $34.5 million is a significant sum for a single contract in this category. Benchmarking would involve identifying contracts with similar scopes of work, delivery timelines, and technological complexity. Without competitive bidding, this specific award's value is harder to contextualize against market norms. It's essential to look at the number of units, complexity of parts, and the duration of the contract to make a meaningful comparison, rather than just the total dollar amount.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $34.5 million contract on a sole-source basis are centered around cost and competition. Firstly, the lack of competition means the government may pay a higher price than if the contract were competed, as there is no market pressure to drive down costs. This can lead to inefficient use of taxpayer funds. Secondly, sole-source awards can reduce transparency in pricing, making it difficult to assess whether the price is fair and reasonable. Thirdly, it limits the opportunity for innovation from other potential suppliers who might offer alternative or more cost-effective solutions. Finally, over-reliance on a single source can create dependency and potential supply chain vulnerabilities if that sole provider encounters issues.

What does the 'BIG SAFARI' designation imply about the nature and urgency of this contract?

The 'BIG SAFARI' designation typically refers to a specific Air Force program focused on rapid acquisition of intelligence, surveillance, and reconnaissance (ISR) capabilities and related technologies. Contracts under this umbrella are often characterized by a need for speed, flexibility, and the integration of cutting-edge or specialized systems. This implies that the 'Other Aircraft Parts' procured under this contract are likely critical for supporting advanced ISR platforms, potentially involving unique specifications, urgent operational requirements, or novel technological components. The 'BIG SAFARI' context suggests that the acquisition process might be streamlined to meet pressing national security needs, which can sometimes influence the contracting approach, including justifications for limited competition.

How does the firm-fixed-price contract type mitigate or exacerbate risks in this sole-source scenario?

The firm-fixed-price (FFP) contract type in this sole-source scenario offers a degree of risk mitigation for the government by establishing a ceiling on the total cost. The contractor, L3Harris Technologies, assumes most of the risk for cost overruns, as they are obligated to deliver the specified aircraft parts for the agreed-upon price. This provides budget certainty for the Department of Defense. However, in a sole-source context, the FFP structure does not inherently guarantee that the fixed price itself is the most economical. The risk is that the 'fixed' price might be set at a higher baseline due to the lack of competitive pressure. Therefore, while FFP manages cost certainty, the absence of competition means the government must rely heavily on negotiation and cost analysis to ensure the fixed price is fair and reasonable from the outset.

What are the potential implications of the contract's end date (August 31, 2026) on future spending or program continuity?

The contract's end date of August 31, 2026, signifies the planned completion of the current delivery order for these specific aircraft parts. This provides a defined period for the current acquisition. However, it also implies that if the need for these parts continues beyond this date, the Department of the Air Force will need to initiate a new procurement process. This could involve re-competing the requirement, potentially leading to different pricing and a new contractor, or seeking another sole-source extension if justified. The end date necessitates forward planning to ensure program continuity and avoid potential gaps in supply. It also presents an opportunity to re-evaluate requirements and explore alternative solutions or market dynamics that may have evolved since the initial award.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $34,461,749

Exercised Options: $34,461,749

Current Obligation: $34,461,749

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $803,708

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