DoD's $24.5M Big Safari contract awarded to L3Harris for aircraft parts, with a 3-year duration

Contract Overview

Contract Amount: $24,520,439 ($24.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-08-31

Contract Duration: 1,067 days

Daily Burn Rate: $23.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

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 $24.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value represents a significant investment in specialized aircraft components. 2. Sole-source award raises questions about potential price overruns and lack of competitive pressure. 3. Long contract duration (over 3 years) may indicate complex requirements or a need for sustained support. 4. The 'Other Aircraft Parts' classification suggests a broad scope, potentially encompassing critical but non-standardized equipment. 5. Awarded by the Air Force, this contract likely supports ongoing aviation readiness and modernization efforts. 6. The cost-plus-fixed-fee structure necessitates close monitoring to ensure efficient cost management.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.5 million contract is challenging due to its sole-source nature and specific application within the 'Big Safari' program. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The cost-plus-fixed-fee (CPFF) contract type means the government pays the contractor's allowable costs plus a fixed fee, which can sometimes lead to higher overall costs if not managed diligently. Further analysis would require comparing the scope and deliverables to similar sole-source awards for specialized aerospace components, which are often unique and command premium pricing.

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 responsible source is available or when there's a compelling justification for excluding competition. The lack of competition means taxpayers did not benefit from potential cost savings that could arise from a bidding process. It also limits the government's ability to explore alternative solutions or innovations from a wider range of suppliers.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these aircraft parts. Without multiple bids, there's less pressure on the contractor to offer competitive rates, potentially leading to higher expenditures.

Public Impact

The primary beneficiaries are likely the U.S. Air Force and its operational units relying on specialized aircraft capabilities. The contract delivers essential aircraft parts and auxiliary equipment, crucial for maintaining and enhancing aviation readiness. The geographic impact is primarily within Texas, where L3Harris is located, but the ultimate impact is on Air Force operations nationwide and potentially globally. This contract supports a segment of the aerospace manufacturing workforce, particularly those with specialized skills in producing complex aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Cost-plus-fixed-fee structure requires robust oversight to prevent cost overruns.
The 'Big Safari' program's specialized nature may limit transparency and public understanding of specific needs.
Long contract duration could mask inefficiencies if not actively managed.
Lack of competition may stifle innovation from other potential suppliers.

Positive Signals

Award to an established contractor (L3Harris) suggests a degree of confidence in their capabilities.
The contract supports critical defense capabilities, contributing to national security.
The fixed fee component of the CPFF contract provides some cost predictability.
The specific nature of 'Big Safari' implies a focus on advanced or unique technological solutions.
The contract duration aligns with the expected lifecycle of specialized aerospace components.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long product development cycles. Contracts like this, for specialized aircraft parts, fall within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The 'Big Safari' program itself is known for developing and acquiring highly specialized, often classified, aviation systems. Spending in this area is driven by national security imperatives and technological advancement, with major players like L3Harris holding significant market share in niche segments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, L3Harris Technologies, is a large aerospace and defense company. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a direct set-aside means small businesses are less likely to be direct recipients of this funding, though they may benefit indirectly through subcontracting opportunities if L3Harris engages them.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense and the Department of the Air Force. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is earned appropriately. The 'Big Safari' program often involves sensitive technologies, which may influence the level of public transparency. Inspector General (IG) offices within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Big Safari Program
Air Force Aircraft Procurement
Aerospace Manufacturing Contracts
Defense Specialized Equipment

Risk Flags

Sole Source Award
Cost Plus Fixed Fee Contract Type
Potential for Cost Overruns
Lack of Competitive Bidding
Specialized/Niche Product

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 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 $24.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-08-31.

What is the historical spending pattern for the 'Big Safari' program and how does this contract compare?

The 'Big Safari' program is a long-standing U.S. Air Force initiative focused on rapidly developing and acquiring highly specialized intelligence, surveillance, reconnaissance (ISR), and electronic warfare (EW) aircraft and systems. Historical spending within 'Big Safari' has varied significantly year-to-year, often involving large, complex, and sometimes classified projects. This $24.5 million contract for 'Other Aircraft Parts' appears to be a component supporting one or more 'Big Safari' endeavors. Without specific program budget breakdowns, it's difficult to place this single contract in precise historical context relative to the entire program's multi-billion dollar lifecycle. However, it represents a substantial, albeit specific, investment within the program's overall portfolio, likely addressing a critical need for specialized components that are not readily available through standard procurement channels.

What are the risks associated with a sole-source, cost-plus-fixed-fee contract for specialized aircraft parts?

Sole-source contracts inherently carry risks related to price inflation, as there is no competitive pressure to drive down costs. The government may end up paying more than if multiple bids were solicited. The Cost-Plus-Fixed-Fee (CPFF) structure, while providing some cost certainty through the fixed fee, still requires the government to reimburse all allowable costs incurred by the contractor. This can lead to cost overruns if the contractor's cost management is inefficient or if unforeseen issues arise during performance. For specialized aircraft parts, the unique nature of the components can also introduce risks related to technical performance, supply chain disruptions, and obsolescence. Robust government oversight, detailed cost monitoring, and clear performance metrics are essential to mitigate these risks.

How does L3Harris Technologies Integrated Systems L.P. typically perform on similar DoD contracts?

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with a substantial track record of performance on various U.S. Department of Defense contracts, including those involving complex aerospace systems and components. Historically, the company has demonstrated capabilities in delivering sophisticated solutions across multiple domains. Performance on CPFF contracts requires diligent cost control and adherence to schedules. While specific performance metrics for individual contracts are often not publicly disclosed, L3Harris's continued success in securing large sole-source and competitive awards suggests a generally positive performance history and strong relationship with the DoD. However, like any large contractor, there can be instances of performance challenges or cost variances on specific projects that require close management attention.

What is the strategic importance of the 'Big Safari' program and the role of specialized aircraft parts within it?

The 'Big Safari' program is strategically vital for the U.S. Air Force as it enables the rapid acquisition and fielding of cutting-edge intelligence, surveillance, reconnaissance (ISR), electronic warfare (EW), and special operations capabilities. It allows the Air Force to adapt quickly to evolving threats and technological advancements by developing bespoke solutions that are often classified or highly specialized. Specialized aircraft parts are the building blocks of these unique systems. They are not standard off-the-shelf components but rather custom-designed or modified parts essential for integrating advanced sensors, communication systems, or weapons onto aircraft platforms. The availability and reliability of these specific parts directly impact the operational effectiveness and readiness of 'Big Safari' assets, ensuring the U.S. maintains a technological edge.

What are the potential implications of this contract on the broader aerospace parts manufacturing market?

This contract, being sole-source and awarded to a large prime contractor, has limited direct implications for the broader aerospace parts manufacturing market in terms of fostering competition or opening new market segments. However, it does signal continued demand for highly specialized and potentially custom-manufactured aircraft components within the defense sector, particularly for niche programs like 'Big Safari'. It reinforces the market position of established players like L3Harris in these specialized areas. Indirectly, it could create opportunities for smaller, specialized suppliers if L3Harris chooses to subcontract specific manufacturing or development tasks. The overall trend it reflects is the defense industry's reliance on a few key large contractors for complex, integrated systems and their associated specialized parts.

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: COST PLUS FIXED FEE (U)

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: $24,520,439

Exercised Options: $24,520,439

Current Obligation: $24,520,439

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $6,937,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline