DoD's $39.5M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $39,504,940 ($39.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2025-03-12

Contract Duration: 436 days

Daily Burn Rate: $90.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of $39.5 million represents a significant investment in specialized aircraft components. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price overruns and limited market exploration. 3. The contract duration of 436 days suggests a focused effort on specific, potentially critical, aircraft support needs. 4. The absence of small business set-asides indicates this contract did not prioritize small business participation. 5. The 'Other Aircraft Parts' classification points to a need for specialized or unique components rather than mass-produced items. 6. The firm-fixed-price contract type aims to control costs, but the sole-source nature may still lead to suboptimal pricing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific classification of 'Other Aircraft Parts'. Without competitive bids, it's difficult to ascertain if the $39.5 million price reflects fair market value. The contract's duration of 436 days and firm-fixed-price structure suggest an attempt to manage costs, but the lack of comparison points makes a definitive value assessment difficult. Further analysis would require understanding the specific components and their market availability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a bidding process.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without multiple bids, there's less incentive for the contractor to offer the lowest possible price, potentially leading to higher overall spending.

Public Impact

The primary beneficiaries are likely the U.S. Air Force units requiring specialized aircraft parts under the BIG SAFARI program. The contract delivers essential components for aircraft maintenance, repair, and potentially upgrades, ensuring operational readiness. The geographic impact is primarily within the Department of Defense's operational theaters, supporting global aviation missions. Workforce implications may include specialized manufacturing and technical support roles at L3Harris and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of small business participation means missed opportunities for small business growth and innovation.
The specific nature of 'Other Aircraft Parts' could indicate reliance on a single supplier for critical components.
Limited transparency due to non-competitive nature makes it harder to assess true value for money.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to L3Harris, a known defense contractor, suggests a level of established capability and reliability.
The BIG SAFARI program designation implies support for critical and potentially advanced aerospace systems.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Contracts for aircraft parts, especially under programs like BIG SAFARI, often involve specialized manufacturing and stringent quality control. The market for such components can be concentrated, with a few key players possessing the necessary expertise and certifications. Spending in this area is critical for maintaining military readiness and technological superiority.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them based on the provided data. The award to a large prime contractor like L3Harris suggests that small business participation, if any, would be at the subcontracting level determined by the prime. This contract does not directly contribute to the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature, but contract modifications, performance reports, and payment data would be subject to internal review and potentially Inspector General oversight if specific concerns arise.

Related Government Programs

BIG SAFARI Program
Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 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 $39.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-03-12.

What is the historical spending pattern for 'Other Aircraft Parts' under the BIG SAFARI program?

Analyzing historical spending for 'Other Aircraft Parts' under the BIG SAFARI program requires access to detailed contract databases. Typically, such spending can fluctuate based on specific aircraft modernization needs, fleet readiness requirements, and the introduction of new technologies. Without specific historical data for this contract classification within the BIG SAFARI program, it's difficult to establish a precise pattern. However, consistent spending in this category often indicates ongoing needs for specialized components, potentially driven by aging fleets or evolving mission requirements. A review of past awards for similar parts would reveal trends in contract values, durations, and award types (competitive vs. sole-source).

What specific types of aircraft parts are covered under this 'Other Aircraft Parts' classification for the BIG SAFARI program?

The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) is broad and encompasses a wide range of components beyond standard engine or airframe parts. For the BIG SAFARI program, this could include specialized avionics components, unique structural elements, mission-specific equipment attachments, or auxiliary systems not typically categorized elsewhere. The 'BIG SAFARI' designation itself often implies support for intelligence, surveillance, and reconnaissance (ISR) or special operations aircraft, suggesting these parts might be related to advanced sensor integration, communication systems, or unique operational modifications. A detailed breakdown would likely be found in the contract's statement of work or technical exhibits, which are not publicly available in this data snippet.

What are the risks associated with awarding a sole-source contract for critical aircraft components?

Sole-source awards for critical aircraft components carry several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. This can result in suboptimal value for taxpayer money. Secondly, it limits the government's options and flexibility; if the sole-source provider experiences production issues, quality control problems, or financial instability, there are few immediate alternatives. This dependence can create supply chain vulnerabilities. Furthermore, without competitive benchmarking, it's harder to ensure the technology or components provided are the most advanced or cost-effective available on the market. Finally, sole-source awards can sometimes be perceived as less transparent, potentially raising concerns about fairness and the justification for avoiding competition.

How does L3Harris Technologies' track record influence the assessment of this contract's performance potential?

L3Harris Technologies is a well-established and significant defense contractor with a broad portfolio of aerospace and defense products and services. Their extensive experience in developing and supplying complex systems for military applications suggests a strong capability to meet the technical requirements of this contract. Historically, large contractors like L3Harris often have robust quality control processes and established supply chains, which can mitigate performance risks. However, their size and extensive contract base also mean that oversight is crucial to ensure focused attention on individual awards. While their track record generally indicates reliability, the specific performance on this sole-source contract will depend on factors like resource allocation, program management, and adherence to the firm-fixed-price terms.

What is the potential impact of this contract on the broader aerospace parts manufacturing market?

The impact of this specific $39.5 million sole-source contract on the broader aerospace parts manufacturing market is likely to be limited. While it represents a significant award to L3Harris, the market itself is vast and includes numerous large and small manufacturers. The sole-source nature means it doesn't stimulate broader market competition or encourage new entrants. However, it does reinforce L3Harris's position in supplying specialized components for defense applications. If the 'Other Aircraft Parts' are proprietary or require unique manufacturing capabilities, this contract could solidify the supplier's dominance in that niche. Conversely, if these parts could be sourced competitively, the award might represent a missed opportunity for other manufacturers to gain market share and for the government to achieve better pricing.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

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: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,491,475

Exercised Options: $40,491,475

Current Obligation: $39,504,940

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,244,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862020G4050

IDV Type: BOA

Timeline