DoD awards $59.6M to L3Harris for Aircraft Parts, raising concerns about competition and value

Contract Overview

Contract Amount: $59,577,482 ($59.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-12-22

End Date: 2025-12-31

Contract Duration: 740 days

Daily Burn Rate: $80.5K/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 $59.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $59.6 million awarded. 2. Sole-source award to L3Harris Technologies raises competition concerns. 3. Potential for taxpayer overpayment due to lack of competitive bidding. 4. Contract supports the Department of the Air Force's aircraft needs.

Value Assessment

Rating: questionable

The contract value of $59.6 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft parts contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, was considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft parts.

Public Impact

Taxpayers may be overpaying for essential aircraft components. Limited transparency into the justification for a sole-source award. Potential impact on the readiness and cost-effectiveness of Air Force operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Limited transparency

Positive Signals

Supports critical Air Force needs
Firm fixed price contract

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks for similar sole-source contracts are difficult to establish without more data.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large business. There is no indication that small businesses were involved in this specific sole-source award, potentially missing opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification is sound and that future procurements explore competitive options to maximize value for taxpayers.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency in award justification
No small business participation evident
High contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.6 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 $59.6 million.

What is the period of performance?

Start: 2023-12-22. End: 2025-12-31.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation from the Department of Defense, it's impossible to determine the precise reason. This lack of transparency raises concerns about whether a competitive process was truly infeasible or if other options were adequately explored.

How does the $59.6 million contract value compare to industry benchmarks for similar aircraft parts, especially given the sole-source nature?

Comparing this $59.6 million contract value to industry benchmarks is challenging due to its sole-source designation. Competitive contracts allow for price discovery and market validation. In a sole-source scenario, the government relies heavily on the contractor's proposed pricing, making it difficult to ascertain if it aligns with what could be achieved through open competition. Further analysis of historical pricing and similar sole-source awards would be needed.

What is the potential long-term impact on the Air Force's budget and operational efficiency due to this sole-source award?

A sole-source award, especially for a significant amount like $59.6 million, can lead to higher costs over the contract's duration compared to a competitively bid contract. This could strain the Air Force's budget, potentially diverting funds from other critical areas. Furthermore, the lack of competitive pressure might disincentivize cost-saving innovations, impacting long-term operational efficiency.

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: 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: $59,577,482

Exercised Options: $59,577,482

Current Obligation: $59,577,482

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $537,775

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