L3Harris Technologies awarded $23.7M for aircraft parts, with limited competition and a 2025 end date

Contract Overview

Contract Amount: $23,767,531 ($23.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2022-12-23

End Date: 2025-12-31

Contract Duration: 1,104 days

Daily Burn Rate: $21.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $23.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value of $23.7 million for aircraft parts suggests a significant need for specialized components. 2. The 'Not Available for Competition' status raises questions about the extent of market research and potential for broader engagement. 3. Fixed-price contract type aims to control costs, but the lack of competition may limit price negotiation effectiveness. 4. The contract duration of approximately three years indicates a medium-term requirement for these parts. 5. Delivery orders suggest a flexible procurement approach, allowing for phased acquisition of parts as needed. 6. The primary location in Texas points to a specific operational or manufacturing hub for these aircraft components.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the aircraft parts involved and their criticality. The $23.7 million award for a fixed-price contract over approximately three years suggests a moderate level of spending. However, the lack of competition makes it difficult to assess if the pricing is optimal or if it represents a fair market value compared to what could be achieved through a competitive bidding process. Without comparable contract data for similar specialized aircraft parts, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' (NAF) status, indicating that only one source was considered capable of fulfilling the requirement. This typically occurs when there are unique capabilities, proprietary technology, or urgent needs that only a specific contractor can meet. The limited competition means that taxpayers did not benefit from the price discovery mechanisms inherent in a broader bidding process, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. The absence of multiple bids limits the government's leverage to negotiate down costs, potentially resulting in a less efficient use of public funds.

Public Impact

The primary beneficiaries are likely the military units or aviation programs that rely on the specific aircraft parts being procured. The contract delivers essential components for aircraft maintenance, repair, and potentially upgrades, ensuring operational readiness. The geographic impact is concentrated in Texas, where the contractor L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. Workforce implications may include continued employment for skilled manufacturing and technical personnel at L3Harris, supporting specialized aerospace jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced value for taxpayer dollars.
Sole-source awards can stifle innovation by limiting opportunities for other capable companies to enter the market.
Dependence on a single supplier can create supply chain risks if the contractor faces production issues or financial instability.
Transparency is reduced due to the absence of a competitive bidding process, making it harder to scrutinize the award.

Positive Signals

The fixed-price contract type provides cost certainty for the government, assuming the scope of work is well-defined.
L3Harris Technologies is a known entity in the defense sector, suggesting a degree of reliability and established expertise.
The contract is for essential aircraft parts, directly supporting defense readiness and operational capabilities.
The delivery order structure allows for flexibility in acquiring parts as needed, potentially optimizing inventory management.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract for aircraft parts falls within the broader 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry. The market for such components is often specialized, with a limited number of firms possessing the necessary certifications, technical expertise, and production capabilities. Spending in this area is critical for maintaining the operational readiness of military fleets, and contracts are often awarded based on specific technological requirements or existing platform support.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the sole-source nature and the likely specialized requirements for aircraft parts, it is improbable that small businesses would be primary awardees unless they were subcontractors. The impact on the small business ecosystem would depend on whether L3Harris Technologies engages small businesses for subcontracting opportunities, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The fixed-price nature of the contract implies that the government's primary accountability measure is ensuring delivery of the specified parts according to the contract terms. Transparency is limited due to the sole-source award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Maintenance and Repair Services
Aerospace Component Manufacturing
Defense Logistics Support
Military Aircraft Procurement
Specialized Parts Manufacturing

Risk Flags

Sole-source award limits price competition.
Lack of transparency in competition justification.
Potential for higher costs due to limited bidders.
Supply chain risk associated with single supplier dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2022-12-23. End: 2025-12-31.

What specific types of aircraft parts are being procured under this contract, and what is their criticality to the supported platforms?

The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413). However, the specific types of parts are not detailed. These could range from engine components, structural elements, avionics parts, or specialized systems. Their criticality would depend on the specific aircraft platforms they support. If these parts are for legacy systems with limited production lines or require highly specialized manufacturing processes, it could justify a sole-source award. Without this detail, assessing the true necessity and potential for alternative sourcing remains difficult. The $23.7 million value suggests a substantial quantity or high-value components are involved.

What was the justification for awarding this contract on a sole-source basis, and was adequate market research conducted?

The contract is explicitly listed as 'NOT AVAILABLE FOR COMPETITION' (NAF), which is a form of sole-source procurement. The justification for NAF awards typically stems from reasons such as unique capabilities, proprietary technology, urgent and compelling needs, or the unavailability of other sources. The Department of Defense, through its contracting officers, is required to conduct market research to determine if competitive sources exist. For a sole-source award to be considered appropriate, the research must demonstrate that no other responsible source can meet the requirement. The specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition) would contain the detailed rationale, which is not provided here but is typically available through official channels like SAM.gov.

How does the per-unit cost or overall pricing of these aircraft parts compare to similar items procured competitively by the government or in the commercial market?

Direct comparison of per-unit costs is not feasible with the given data, as the specific parts are not identified, nor are quantities or unit prices provided. The total award is $23.7 million over approximately 3.2 years (from Dec 2022 to Dec 2025). Benchmarking would require access to detailed specifications of the parts and their market prices. Given the sole-source nature, it is plausible that the pricing may be higher than if the contract had been competed. Without comparable contract awards for identical or highly similar parts procured competitively, assessing the value-for-money in terms of pricing is speculative. The fixed-price nature aims to cap costs, but the lack of competition limits the government's ability to negotiate the lowest possible price.

What is L3Harris Technologies' track record with similar sole-source contracts, particularly within the Department of Defense?

L3Harris Technologies is a major defense contractor with a substantial history of performing various contracts for the Department of Defense. Analyzing their track record with sole-source awards would involve reviewing past contract awards to identify patterns of NAF procurements, their justifications, and performance history. Companies of L3Harris's size often receive sole-source awards for specialized systems or components where they possess unique expertise or are the incumbent provider. A thorough assessment would require examining contract performance metrics, any past performance issues, and the frequency with which they are awarded contracts without full and open competition. Generally, established large contractors are expected to have robust processes for managing such awards.

What are the potential risks associated with relying on a single supplier for these critical aircraft parts, and what mitigation strategies are in place?

The primary risks of a sole-source contract include potential price inflation due to lack of competition, supply chain vulnerability if the single supplier experiences disruptions (e.g., production issues, financial instability, geopolitical events), and a reduced incentive for the supplier to innovate or improve efficiency. Mitigation strategies employed by the government often include rigorous contract oversight, establishing clear performance metrics, potentially negotiating long-term agreements with price adjustment clauses tied to market indices, and maintaining strong communication channels with the contractor. For critical parts, the government might also explore developing alternative sources or in-house capabilities over the long term, though this is a complex and costly undertaking.

How does this $23.7 million contract compare to overall historical spending on aircraft parts by the Department of Defense or the specific agency/command?

The $23.7 million award represents a specific procurement for aircraft parts. To contextualize this, one would need to compare it against the total annual spending by the Department of Defense (DoD) on aircraft parts and maintenance. The DoD's annual budget is in the hundreds of billions of dollars, with a significant portion allocated to aviation systems. Spending on spare parts, components, and related services can easily run into billions annually across all branches. This $23.7 million contract, while substantial for a single award, is likely a small fraction of the total DoD expenditure in this category. Comparing it to historical spending patterns for similar types of parts or for the specific aircraft platforms supported would provide better insight into whether this represents an increase, decrease, or stable level of investment.

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 AVAILABLE FOR COMPETITION

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: $23,767,531

Exercised Options: $23,767,531

Current Obligation: $23,767,531

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