DoD Awards $25.4M Contract to L3Harris for Aircraft Parts, Facing Limited Competition

Contract Overview

Contract Amount: $25,395,411 ($25.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-06-23

End Date: 2026-01-31

Contract Duration: 953 days

Daily Burn Rate: $26.6K/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 $25.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $25.4 million awarded to a single large business. 2. Limited competition raises questions about price discovery and potential overspending. 3. The contract spans over 2.5 years, indicating a substantial, ongoing need. 4. Sector is Defense, specifically aircraft parts manufacturing, a critical area for national security.

Value Assessment

Rating: fair

The contract value of $25.4 million for aircraft parts is difficult to benchmark without specific unit cost data. Given the limited competition, there's a risk that the pricing may not be as competitive as it could be under a more open bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited competition scenario. This limits the government's ability to solicit bids from multiple vendors, potentially impacting price discovery and leading to higher costs.

Taxpayer Impact: The lack of robust competition could result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Defense spending on critical aircraft components impacts military readiness. L3Harris Technologies, a major defense contractor, benefits from this award. Taxpayers may be subject to higher costs due to limited competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of specific unit cost data for benchmarking
Potential for inflated pricing

Positive Signals

Award to established defense contractor
Addresses critical defense need for aircraft parts

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of aircraft parts and auxiliary equipment. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks for similar contracts are often proprietary or difficult to access due to national security considerations.

Small Business Impact

The contract was awarded to L3Harris Technologies Integrated Systems L.P., a large business. There is no indication that small businesses were involved in this specific award, either as prime contractors or significant subcontractors.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency, which is responsible for ensuring contractor performance and compliance. However, the limited competition aspect warrants closer oversight to ensure fair pricing and value for taxpayer dollars.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency in the procurement process.
Potential for vendor lock-in.
Reliance on a single large business contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2023-06-23. End: 2026-01-31.

What specific factors led to this contract being 'NOT AVAILABLE FOR COMPETITION', and could a competitive process have yielded better pricing?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Without further details, it's impossible to ascertain the exact reasons, which could range from urgent need, proprietary technology, or existing sole-source justifications. A competitive process, if feasible, typically drives down prices through vendor negotiation and comparison, potentially leading to significant cost savings for the government and taxpayers.

Given the $25.4 million value and limited competition, what is the assessed risk of overpayment for these aircraft parts?

The risk of overpayment is considered fair to concerning due to the limited competition. When a contract is not open to full competition, the government loses the leverage that multiple bids provide. This can allow the awarded contractor to set prices that are not as aggressively competitive, potentially leading to the government paying more than it would in a fully open market scenario.

How effective is the current oversight mechanism in ensuring value for money for this contract, considering the competitive landscape?

The effectiveness of oversight is fair. While the Defense Contract Management Agency is responsible for oversight, the inherent limitation of competition reduces the built-in mechanism for ensuring optimal value. Proactive measures, such as rigorous price analysis and benchmarking against similar, albeit potentially limited, procurements, are crucial to mitigate the risk of suboptimal value.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $25,395,411

Exercised Options: $25,395,411

Current Obligation: $25,395,411

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,302

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