DoD Awards $20.5M Contract to L3Harris for Aircraft Parts, Raising Oversight Concerns

Contract Overview

Contract Amount: $20,502,390 ($20.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-03-24

End Date: 2024-12-31

Contract Duration: 648 days

Daily Burn Rate: $31.6K/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 $20.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded to L3Harris Technologies for 'Other Aircraft Parts'. 2. Significant value of $20.5 million for a single delivery order. 3. Lack of competition raises questions about price discovery and value for money. 4. Potential for taxpayer impact due to non-competitive award.

Value Assessment

Rating: questionable

The contract's value of $20.5 million for a single delivery order, especially without clear competitive benchmarking, warrants scrutiny. The pricing structure (Cost Plus Fixed Fee) can sometimes lead to higher costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competitive bidding. This limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The absence of competition for a $20.5 million contract means taxpayers may not be receiving the best possible price, as market forces were not leveraged to drive down costs.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense is relying on a single vendor for critical aircraft parts. Transparency in pricing and justification for the sole-source award is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of small business participation indicated

Positive Signals

Contract supports Department of the Air Force needs
Long-term contract duration (648 days)

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military readiness, but competitive procurement is essential to ensure cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Opportunities for small businesses in the aerospace supply chain are often missed in sole-source procurements.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure the contractor is performing efficiently and that costs are reasonable. Auditing of the Cost Plus Fixed Fee elements is critical.

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 pricing
Limited transparency
No small business participation
Cost Plus Fixed Fee structure risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 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 $20.5 million.

What is the period of performance?

Start: 2023-03-24. End: 2024-12-31.

What is the justification for awarding this $20.5 million contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of available sources. Without further documentation, it's difficult to assess if these criteria were met. A thorough review would examine the specific technical requirements and market research conducted to ensure competition was truly not feasible.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract, given the lack of competition?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF can be useful when project scope is uncertain, the lack of competition here means there's less pressure on the contractor to control costs to achieve the fixed fee. This structure, combined with sole-sourcing, increases the risk of cost overruns and reduced value for taxpayers.

What measures are in place to ensure accountability and prevent potential overspending on this sole-source contract?

Robust oversight mechanisms are crucial. This includes detailed cost monitoring, regular performance reviews, and potentially independent audits of the contractor's expenses. The Department of Defense should ensure clear performance metrics are established and that the fixed fee is appropriately justified and not excessively high, given the reduced risk for the contractor.

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 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: $20,502,390

Exercised Options: $20,502,390

Current Obligation: $20,502,390

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $6,093,990

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