DoD's $2.15M BIG SAFARI contract awarded to L3Harris for aircraft parts, raising questions about competition

Contract Overview

Contract Amount: $2,149,000 ($2.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2026-05-31

Contract Duration: 1,066 days

Daily Burn Rate: $2.0K/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 $2.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of over 3 years suggests a significant need for the services or parts. 3. Awarded by the Department of the Air Force, indicating a focus on aviation readiness. 4. The North American Industry Classification System (NAICS) code 336413 points to specialized aircraft parts manufacturing. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 6. The absence of small business involvement raises concerns about broader economic impact.

Value Assessment

Rating: questionable

The contract value of $2.15 million is modest in the context of large defense procurements. However, without a competitive bidding process, it is difficult to benchmark the value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs if the contractor's expenses exceed initial estimates and are not adequately controlled. Further analysis would require comparing the specific parts or services to market rates or similar sole-source awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was considered. This lack of competition means that the Department of Defense did not explore alternative suppliers or negotiate based on multiple offers. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less favorable pricing compared to fully competed contracts.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive necessary aircraft parts or related services. The contract supports the maintenance and operational readiness of Air Force aircraft. The geographic impact is primarily in Texas, where L3Harris Technologies Integrated Systems L.P. is located. The contract supports specialized manufacturing jobs within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for money.
Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of small business participation limits economic opportunities.
Limited transparency due to non-competitive nature of the award.

Positive Signals

Award to an established contractor with likely relevant experience.
Contract addresses a specific need within the Department of Defense's aviation sector.
Clear delivery period defined, providing a timeframe for service completion.

Sector Analysis

The aerospace parts manufacturing sector is highly specialized, often characterized by long lead times, complex supply chains, and significant R&D investment. Defense contracts form a substantial portion of this market. Companies like L3Harris operate within a landscape where technological innovation and adherence to stringent quality standards are paramount. Benchmarking this contract's value is challenging without more specific details on the parts or services, but it falls within the typical range for specialized component procurement for military aircraft.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a large prime contractor suggests that the focus was on acquiring a specific capability rather than fostering small business participation. This could limit the broader economic impact on the small business ecosystem within the aerospace supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and CPFF structure, rigorous oversight of cost expenditures and performance against requirements would be crucial. Transparency may be limited due to the non-competitive award, but contract performance reviews and audits by the Defense Contract Audit Agency (DCAA) would be standard oversight mechanisms.

Related Government Programs

BIG SAFARI Program
Air Force Aircraft Maintenance Contracts
Defense Aviation Parts Procurement
Sole-Source Defense Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Cost Plus Fixed Fee contract type increases risk of cost overruns.
Lack of small business participation limits economic opportunity.
Limited transparency due to non-competitive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.1 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 $2.1 million.

What is the period of performance?

Start: 2023-06-30. End: 2026-05-31.

What is the specific nature of the 'BIG SAFARI' program, and how does this contract fit within its objectives?

The BIG SAFARI (Broad Area Ground Support, Aviation, and Related Infrastructure) program is an Air Force initiative focused on rapidly acquiring and fielding critical capabilities, often through non-traditional or expedited methods. It aims to address urgent operational needs by leveraging innovative acquisition strategies. This specific contract likely supports a particular aircraft platform or operational requirement identified under the BIG SAFARI umbrella, providing essential parts or services to enhance or maintain its functionality. The sole-source award suggests that the requirement was deemed urgent or that L3Harris possessed a unique capability deemed necessary for rapid deployment within the program's framework.

What are the typical risks associated with Cost Plus Fixed Fee (CPFF) contracts in the defense sector?

Cost Plus Fixed Fee (CPFF) contracts are used when the exact cost of performance is uncertain but a reasonable estimate can be made. The primary risk for the government is that the contractor's actual costs may exceed the estimated costs, leading to a higher final price than anticipated. While the contractor receives a fixed fee, which is a predetermined profit amount, they are incentivized to control costs to ensure their fee is not eroded by cost overruns. However, if the fixed fee is substantial or the oversight is lax, the incentive to minimize costs can be weak. For taxpayers, the risk lies in potentially paying more than necessary if cost controls are not robustly implemented and monitored by the procuring agency.

How does the sole-source nature of this award impact potential cost savings for the Air Force?

Sole-source awards inherently limit cost savings opportunities because they bypass the competitive bidding process. When multiple companies compete, they are driven to offer their best prices and most efficient solutions to win the contract. Without this competition, the government lacks a benchmark against which to negotiate. The contractor, knowing they are the only option, may have less incentive to offer the lowest possible price. While the Air Force may still negotiate terms, the absence of competing proposals means they cannot leverage the power of market forces to secure the most economical outcome, potentially leading to higher expenditures for the taxpayer.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly on similar sole-source contracts?

L3Harris Technologies Integrated Systems L.P. is a major defense contractor with a long history of providing a wide range of products and services to the Department of Defense. They have a significant portfolio of contracts across various military branches, including the Air Force. While specific details on their track record with sole-source contracts of this exact nature require deeper database analysis, their established presence suggests they possess the technical capabilities and security clearances necessary for such awards. However, the frequency and justification of sole-source awards to any large contractor are always subject to scrutiny regarding fair pricing and competition.

Are there any comparable contracts for aircraft parts or auxiliary equipment manufacturing that could serve as a benchmark for this award?

Benchmarking this specific contract is challenging without knowing the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured under the BIG SAFARI program. However, the Department of Defense awards numerous contracts for aircraft components, ranging from simple fasteners to complex avionics systems. Contracts for similar specialized parts, especially those requiring unique manufacturing processes or certifications, can vary significantly in price based on volume, complexity, and supplier. A comparison would ideally involve identifying contracts with similar NAICS codes (336413), contract types (CPFF), and awardees, but the sole-source nature here complicates direct value-for-money comparisons.

What are the potential implications of this contract on the broader aerospace parts manufacturing market, particularly concerning small businesses?

The award to a large, established prime contractor like L3Harris, especially on a sole-source basis, typically has limited direct positive implications for the broader small business ecosystem in the aerospace parts manufacturing sector. Small businesses often thrive on competitive subcontracts or by winning smaller, direct contracts. A sole-source award to a prime may mean fewer subcontracting opportunities are advertised or competed. While L3Harris may engage small businesses in its supply chain, the lack of a formal small business subcontracting plan requirement (often tied to larger, competed contracts) means this is not guaranteed or mandated. This contract, in isolation, does not appear to actively promote small business growth.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: $9,731,138

Exercised Options: $9,731,138

Current Obligation: $2,149,000

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $68,589

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