DoD Awards $32.8M Contract to L3Harris for Aircraft Parts, Raising Oversight Concerns
Contract Overview
Contract Amount: $32,837,776 ($32.8M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2024-04-25
End Date: 2027-01-31
Contract Duration: 1,011 days
Daily Burn Rate: $32.5K/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 $32.8 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $32.8 million awarded. 2. Sole-source award to L3Harris Technologies raises competition questions. 3. Long contract duration of over 1000 days warrants scrutiny. 4. Focus on 'Other Aircraft Parts' suggests a niche but critical sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $32.8 million contract means taxpayers may not be receiving the best possible price.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could indicate a critical, long-term need for these aircraft parts. Potential for cost overruns exists with the Cost Plus Fixed Fee contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Award to established defense contractor
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a crucial component of the defense industrial base. Spending in this area is often driven by specific platform needs and maintenance requirements.
Small Business Impact
The awardee, L3Harris Technologies, is a large corporation, and there is no indication that small businesses were involved in this specific contract. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure costs are reasonable and performance meets expectations. The Department of the Air Force must actively monitor expenditures and deliverables.
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 cost overruns
- Limited transparency on justification for sole-source award
- Long contract duration without clear performance metrics
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 $32.8 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 $32.8 million.
What is the period of performance?
Start: 2024-04-25. End: 2027-01-31.
What specific aircraft or systems does this contract support, and why was a sole-source award necessary?
The contract supports 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' for the Department of the Air Force. A sole-source award is typically justified when only one vendor possesses the necessary technical expertise, proprietary technology, or when urgent and compelling circumstances exist. Without further details, the necessity remains unclear and warrants investigation to ensure fair pricing and prevent potential monopolies.
What are the potential risks associated with a Cost Plus Fixed Fee contract for aircraft parts?
Cost Plus Fixed Fee (CPFF) contracts carry risks of cost overruns if the contractor's costs exceed projections, as the government pays the actual costs plus a predetermined fixed fee. This can incentivize less efficient cost management by the contractor. For aircraft parts, the complexity and potential for unforeseen technical issues can exacerbate these risks, making close government oversight crucial.
How does the lack of competition impact the overall value for taxpayer money in this contract?
The absence of competition significantly diminishes the potential for achieving the best value for taxpayer money. Without competing bids, there is no market pressure to drive down prices or encourage innovation in cost-saving measures. The government relies solely on the contractor's proposed pricing, which may not reflect the most economical option available, potentially leading to inflated costs.
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: $33,204,933
Exercised Options: $33,204,933
Current Obligation: $32,837,776
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $2,216,801
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: FA862021G4027
IDV Type: BOA
Timeline
Start Date: 2024-04-25
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-12-16
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