DoD Awards $41.3M Contract for Aircraft Parts to L3Harris, Raising Competition Concerns
Contract Overview
Contract Amount: $41,264,797 ($41.3M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2023-04-07
End Date: 2027-03-12
Contract Duration: 1,435 days
Daily Burn Rate: $28.8K/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 $41.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $41.3 million awarded. 2. L3Harris Technologies is the sole awardee, limiting competition. 3. Cost-plus-fixed-fee contract type may incentivize higher costs. 4. The award falls under 'Other Aircraft Parts' manufacturing. 5. Long duration of 1435 days suggests a substantial project.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs compared to fixed-price contracts. Without a competitive bidding process, it's difficult to assess if the pricing is optimal or if it reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition for a $41.3 million contract raises concerns about taxpayer value and the potential for overspending.
Public Impact
Taxpayers may not be receiving the best value due to the absence of competitive bidding. The long contract duration could tie up significant resources without guaranteed cost-efficiency. Dependence on a single supplier for critical aircraft parts could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
Positive Signals
- Awarded to a known entity (L3Harris)
- Supports Department of the Air Force needs
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is critical for maintaining military readiness, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The awardee, L3Harris Technologies, is a large corporation. There is no indication that small businesses were involved in this specific sole-source award, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that the government is receiving necessary goods and services at a fair price.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated costs due to contract type
- Long contract duration may not reflect current needs
- No apparent small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.3 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 $41.3 million.
What is the period of performance?
Start: 2023-04-07. End: 2027-03-12.
What specific justification was provided for the sole-source award, and does it align with federal procurement regulations for non-competitive contracts?
The provided data does not include the specific justification for the sole-source award. Federal regulations typically require a compelling reason, such as unique capabilities or urgent need, to bypass full and open competition. Without this justification, it's difficult to assess the validity of the procurement method and ensure it served the government's best interest.
How does the cost-plus-fixed-fee structure compare to historical pricing for similar aircraft parts procured competitively?
A cost-plus-fixed-fee contract allows the contractor to recover costs plus a predetermined fee. Without competitive bids, it's challenging to benchmark this against other contracts. A comparative analysis with similar parts procured under fixed-price or competitively awarded contracts would be necessary to determine if this pricing structure is cost-effective for the taxpayer.
What are the potential risks associated with a long-term, sole-source contract for aircraft parts, particularly regarding technological obsolescence or supply chain disruptions?
A long-term, sole-source contract carries risks of technological obsolescence if the parts are not updated to meet evolving military needs. It also creates a single point of failure in the supply chain, making the Department of Defense vulnerable to disruptions if the sole provider faces issues. Regular reviews and contingency planning are crucial.
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: 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: $80,115,798
Exercised Options: $46,108,005
Current Obligation: $41,264,797
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $2,982,224
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
Start Date: 2023-04-07
Current End Date: 2027-03-12
Potential End Date: 2027-03-12 00:00:00
Last Modified: 2025-12-16
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