DoD awards $6.7M contract for aircraft parts, with limited competition and potential value concerns

Contract Overview

Contract Amount: $6,739,119 ($6.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2026-07-31

Contract Duration: 1,307 days

Daily Burn Rate: $5.2K/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 $6.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a firm-fixed-price basis, suggesting price certainty but potentially limiting flexibility. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The contract duration of over three years warrants scrutiny for ongoing value. 4. Awarded to a single, large defense contractor, indicating a focus on established players. 5. The specific nature of 'Other Aircraft Parts' suggests a niche requirement. 6. Geographic concentration in Texas may have local economic implications.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific part details or market data. The firm-fixed-price structure provides cost certainty for the government, but the lack of competitive bids means there's no direct market validation of the price. Given the $6.7 million total value over three years, the annual spend is approximately $2.2 million. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value for money. Further analysis would require understanding the specific parts and their market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement. The data does not specify the number of bidders, but the designation suggests that full and open competition was likely not pursued or possible. This limited competition environment can lead to higher prices for the government as there is less pressure from market forces to drive down costs. It also raises questions about whether alternative suppliers were considered or if there were specific justifications for restricting the field of bidders.

Taxpayer Impact: Limited competition means taxpayers may not be receiving the best possible price for these aircraft parts, as the government lacked the leverage of multiple bids to negotiate lower costs.

Public Impact

The Department of the Air Force benefits from the acquisition of necessary aircraft parts. This contract supports the operational readiness and maintenance of Air Force aircraft. The primary beneficiaries are the end-users within the Air Force requiring these specific components. Workforce implications are likely within L3Harris Technologies, supporting manufacturing and logistics. Geographic impact is concentrated in Texas, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in inflated pricing for taxpayers.
Lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' justification requires further review.
The long contract duration could lead to price increases if market conditions change significantly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a large, established contractor like L3Harris suggests a focus on reliability and proven performance.
Contract supports critical aircraft parts, ensuring operational readiness for the Air Force.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a critical component of the aerospace and defense industry. This contract falls within the broader defense industrial base, supporting the sustainment and operational capabilities of military aircraft. The market for aircraft parts is often characterized by specialized manufacturing, stringent quality control, and long product lifecycles. Spending in this area is directly tied to defense budgets and the operational tempo of military branches. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft components or maintenance services within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). L3Harris Technologies is a large defense contractor, suggesting that the primary work will be performed by the prime contractor or its large business subcontractors. There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though L3Harris may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' designation, which often involves justifications that are not fully public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Parts Manufacturing
Defense Logistics Support
Military Aircraft Sustainment
Air Force Procurement

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Award Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 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 $6.7 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-07-31.

What is L3Harris Technologies' track record with the Department of Defense for similar aircraft parts contracts?

L3Harris Technologies, a major defense contractor, has a substantial history of performing contracts for the Department of Defense across various platforms and component types. While specific data on 'Other Aircraft Parts' contracts is not detailed here, the company's broad capabilities include manufacturing, integration, and support services for military aircraft. Their track record generally indicates experience with complex defense requirements, adherence to stringent quality standards, and the capacity to manage large-scale procurements. However, a deeper dive into their performance history, including past performance evaluations and any contract disputes or awards related to similar parts, would be necessary for a comprehensive assessment of their suitability and pricing competitiveness for this specific award.

How does the $6.7 million contract value compare to similar aircraft parts procurements by the DoD?

Comparing the $6.7 million value of this contract to similar procurements is challenging without knowing the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment.' Aircraft parts can range from small, low-cost components to large, complex assemblies. If these are standard, high-volume parts, $6.7 million over three years might be considered moderate. However, if they are specialized, low-volume, or critical components with long lead times, the value could be justified. Benchmarking would require identifying contracts for comparable parts, considering quantity, specifications, and the competitive environment. The limited competition aspect here suggests the price may not be as optimized as it could be in a more open market.

What are the primary risks associated with awarding a contract of this size and duration with limited competition?

The primary risks associated with this contract stem from its limited competition and duration. The most significant risk is financial: without robust competition, the government may be overpaying for the parts, leading to inefficient use of taxpayer funds. There's also a risk of reduced innovation and supplier development, as limited competition can disincentivize new entrants or existing suppliers from offering more cost-effective solutions. For a contract spanning over three years, there's a risk of price escalation if market conditions change unfavorably, and the firm-fixed-price nature might not fully mitigate this if unforeseen cost drivers emerge. Furthermore, reliance on a single source, even if qualified, can create supply chain vulnerabilities if that contractor faces production issues or business disruptions.

How effective is the firm-fixed-price (FFP) contract type in managing costs for 'Other Aircraft Parts' over a multi-year period?

The firm-fixed-price (FFP) contract type is generally effective in providing cost certainty for the government, as the contractor assumes the risk of cost overruns. For 'Other Aircraft Parts,' this means the Air Force knows the total price upfront, simplifying budgeting. However, the effectiveness over a multi-year period (1307 days) depends on the initial pricing accuracy and the stability of the market for these parts. If the initial price was set too high due to limited competition, the government locks in that potentially inflated cost. Conversely, if market prices for raw materials or labor increase significantly, the contractor might have less incentive to absorb those costs if the FFP was negotiated with some buffer. The lack of competition here weakens the FFP's ability to ensure the 'best' price.

What does the 'NOT AVAILABLE FOR COMPETITION' designation imply about the necessity and urgency of these aircraft parts?

The 'NOT AVAILABLE FOR COMPETITION' designation typically implies that only one responsible source is capable of providing the required supplies or services, or that a compelling justification exists for restricting competition (e.g., urgency, unique capabilities, follow-on work). For aircraft parts, this could mean the parts are highly specialized, proprietary to a specific aircraft system, or required under urgent circumstances where a full competition process would cause unacceptable delays. It suggests that the government has determined, for reasons not fully detailed in the provided data, that a competitive process was not feasible or appropriate. This designation necessitates careful review by contracting officers to ensure it is properly justified and that the government is still obtaining fair and reasonable pricing.

What is the historical spending pattern for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Air Force?

Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Air Force are substantial, reflecting the continuous need to maintain and modernize its vast fleet of aircraft. This category encompasses a wide array of components, from simple fasteners to complex electronic systems and structural elements. Annual spending can fluctuate based on aircraft sustainment needs, new platform introductions, and modernization programs. While this specific $6.7 million contract is a single award, the aggregate spending across the Air Force for such parts likely runs into hundreds of millions, if not billions, of dollars annually. Analyzing historical data would reveal trends in specific part categories, major suppliers, and the prevalence of competitive versus non-competitive awards within this sector.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT 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: $6,739,119

Exercised Options: $6,739,119

Current Obligation: $6,739,119

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,539,902

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