DoD Awards $37.4M for BIG SAFARI Aircraft Parts to L3Harris Technologies

Contract Overview

Contract Amount: $37,409,793 ($37.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-12-21

End Date: 2025-01-31

Contract Duration: 407 days

Daily Burn Rate: $91.9K/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: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $37.4 million awarded. 2. L3Harris Technologies is the sole awardee, raising competition concerns. 3. Risk associated with sole-source awards and potential price inflation. 4. Spending falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $37.4 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Taxpayers may be overpaying due to the lack of competition. Potential for reduced innovation and efficiency without market forces. Ensuring the necessity and justification for a sole-source award is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Specific need for L3Harris's capabilities
Clear contract end date

Sector Analysis

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

Small Business Impact

The awardee is L3Harris Technologies Integrated Systems L.P., a large corporation. There is no indication that small businesses were involved in this specific sole-source award.

Oversight & Accountability

The Department of the Air Force awarded this contract. Oversight should focus on the justification for the sole-source award and the reasonableness of the price paid.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 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 $37.4 million.

What is the period of performance?

Start: 2023-12-21. End: 2025-01-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The agency should have conducted a price analysis, comparing the proposed price to historical data, other government contracts, or commercial prices, to ensure reasonableness in the absence of competition.

What are the specific risks associated with this sole-source award for aircraft parts?

The primary risks include potential overpayment due to lack of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and the possibility that the government is not getting the best value. There's also a risk if L3Harris faces production issues, as there are no immediate alternative suppliers.

How does this spending align with broader Department of Defense procurement strategies for aircraft parts?

Sole-source awards, while sometimes necessary, generally run counter to strategies emphasizing competition to drive down costs and foster innovation. This award warrants scrutiny to ensure it aligns with the DoD's goals of maximizing value and readiness, and that such sole-source actions are exceptions rather than the norm.

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: FIRM FIXED PRICE (J)

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: $37,872,196

Exercised Options: $37,872,196

Current Obligation: $37,409,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline