DoD's $21.4M 'BIG SAFARI' Contract Awarded to L3Harris for Aircraft Parts Amidst Limited Competition

Contract Overview

Contract Amount: $21,369,369 ($21.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-03-29

End Date: 2026-01-31

Contract Duration: 1,039 days

Daily Burn Rate: $20.6K/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 $21.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value is substantial at $21.4 million. 2. L3Harris Technologies is the sole awardee, indicating limited competition. 3. The contract type is Cost Plus Fixed Fee, which can pose cost control risks. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a niche but critical area for defense.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed closely. Benchmarking against similar sole-source or limited-competition contracts for specialized aircraft parts is difficult without more data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a fully competed scenario. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts.

Public Impact

Ensures continued availability of critical aircraft parts for the Air Force. Potential for cost overruns due to the Cost Plus Fixed Fee structure. Limited visibility into the specific aircraft systems supported by 'BIG SAFARI'. Impact on the broader aerospace supply chain and potential for other manufacturers to compete in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns

Positive Signals

Ensures supply of critical parts
Long-term contract duration

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on specialized aircraft parts. Spending in this area is critical for maintaining military readiness, but often involves complex, high-value components where competition can be limited.

Small Business Impact

The awardee, L3Harris Technologies, is a large defense contractor. There is no indication that small businesses were involved in this specific award, either as subcontractors or prime contractors, which is common in sole-source or specialized procurements.

Oversight & Accountability

The 'BIG SAFARI' program itself suggests a larger initiative, but details on specific oversight mechanisms for this particular delivery order are not provided. The Cost Plus Fixed Fee structure necessitates robust government oversight to manage costs effectively.

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 limits price competition.
Cost Plus Fixed Fee contract type increases risk of cost overruns.
Lack of transparency regarding the specific aircraft systems supported.
Potential for contractor to incur costs not directly tied to optimal efficiency.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 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 $21.4 million.

What is the period of performance?

Start: 2023-03-29. End: 2026-01-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data does not include the justification for the sole-source award. Typically, this would involve demonstrating that only one source can meet the requirement due to unique capabilities, urgency, or proprietary technology. Without this justification, it's difficult to assess if fair and reasonable pricing was achieved through negotiation or if the government accepted a higher price due to the lack of competition.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and how are they being mitigated?

CPFF contracts carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve stringent government oversight of incurred costs, detailed performance metrics, and clear definition of work scope to prevent scope creep. Without specific details on L3Harris's cost accounting and the government's oversight plan, the risk remains elevated.

How does this contract contribute to the overall readiness and modernization goals of the Department of the Air Force, and what is the long-term value proposition?

The 'BIG SAFARI' program likely supports specific, potentially advanced, aircraft systems. Ensuring the availability of these parts is crucial for maintaining operational readiness. The long-term value depends on the criticality of the supported systems, the efficiency of L3Harris's production, and whether this contract prevents future obsolescence or enables upgrades, justifying the investment.

Industry Classification

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

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

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: $21,369,369

Exercised Options: $21,369,369

Current Obligation: $21,369,369

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $798,659

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