DoD's $978M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $97,821,204 ($97.8M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2023-12-31

Contract Duration: 364 days

Daily Burn Rate: $268.7K/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 $97.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $978.2 million awarded to a single vendor. 2. L3Harris Technologies is the sole awardee, indicating a lack of competitive bidding. 3. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. The absence of competition raises concerns about potential overpricing and limited innovation.

Value Assessment

Rating: questionable

The contract value of $978.2 million is substantial. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar contracts for aircraft parts. The benchmark of $2.68 million for this award is extremely low relative to the total contract value, suggesting this may be a placeholder or an incomplete data point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis ('NOT COMPETED'), meaning no other vendors were given the opportunity to bid. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition on a nearly billion-dollar contract raises concerns about taxpayer money being spent efficiently. Without competitive pressure, the Department of Defense may be overpaying for these aircraft parts.

Public Impact

Taxpayers may be footing a higher bill due to the absence of competitive bidding. The Department of the Air Force's reliance on a single supplier could create supply chain vulnerabilities. Limited transparency in the procurement process hinders public understanding of defense spending effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Potential for overpricing

Positive Signals

Award to established defense contractor

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for maintaining military aviation readiness. Spending in this sector can fluctuate based on defense needs and technological advancements. Benchmarking is difficult without competitive data.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large corporation, and there is no indication that small businesses were involved in this specific procurement. This sole-source award bypasses opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Accountability for the justification of the non-competitive award is crucial.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated costs due to no competition.
Risk of vendor lock-in and reduced innovation.
Limited opportunities for small business participation.
Vulnerability in supply chain if sole provider faces issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.8 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $97.8 million.

What is the period of performance?

Start: 2023-01-01. End: 2023-12-31.

What is the specific justification for awarding this nearly $1 billion contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For a contract of this magnitude, a detailed justification should be publicly available, outlining why competition was not feasible or in the government's best interest. Without this information, it's impossible to fully assess the necessity of the non-competitive approach.

How does the government ensure fair pricing when awarding contracts without competition?

When awarding contracts without competition, the government relies on various methods to ensure fair and reasonable pricing. This can include using historical pricing data from previous contracts, conducting market research to establish price benchmarks, obtaining certified cost or pricing data from the contractor, and performing detailed cost analyses. However, the absence of competing offers inherently limits the government's leverage in price negotiations.

What are the potential long-term risks associated with awarding such a large contract to a single supplier?

Awarding a large contract to a single supplier can create significant long-term risks. These include potential vendor lock-in, where the government becomes overly dependent on one provider, leading to reduced bargaining power and potentially higher prices over time. It can also stifle innovation, as there is less incentive for the supplier to improve products or services when competition is absent. Furthermore, supply chain disruptions affecting the sole provider could have severe operational impacts.

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: $99,816,799

Exercised Options: $97,821,204

Current Obligation: $97,821,204

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $15,553,093

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