DoD Awards $30.1M Contract to L3Harris for Aircraft Parts, Raising Competition Concerns

Contract Overview

Contract Amount: $30,111,305 ($30.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-12-27

End Date: 2026-10-31

Contract Duration: 1,039 days

Daily Burn Rate: $29.0K/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 $30.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $30.1 million awarded to L3Harris. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration extends to October 2026, indicating a long-term need. 4. Focus on 'Other Aircraft Parts' suggests a specialized but potentially broad category.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if the $30.1 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach can limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process.

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

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long contract duration could lock in potentially inflated prices. Dependence on a single contractor for critical aircraft parts could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee structure
Long contract duration

Positive Signals

Awarded to established contractor L3Harris

Sector Analysis

This contract falls within the aerospace and defense sector, specifically manufacturing other aircraft parts. Spending in this area is critical for military readiness, but competitive procurement is essential to ensure cost-effectiveness.

Small Business Impact

The contract was awarded to L3Harris Technologies Integrated Systems L.P., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further oversight to ensure the justification for sole-source procurement was robust and that the pricing is reasonable given the contract type.

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
Sole-source award
Cost Plus Fixed Fee structure
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 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 $30.1 million.

What is the period of performance?

Start: 2023-12-27. End: 2026-10-31.

What is the justification for not competing this $30.1 million contract, and what steps were taken to ensure fair pricing?

The justification for not competing this contract is not provided in the data. However, for Cost Plus Fixed Fee contracts, agencies typically conduct market research and negotiate pricing with the chosen contractor. The absence of competition means oversight is crucial to verify that the negotiated fee and cost estimates are reasonable and reflect fair market value for the 'Other Aircraft Parts' being procured.

What are the potential risks associated with awarding a long-term, non-competed contract for aircraft parts?

The primary risks include inflated costs due to the lack of competitive pressure, potential for vendor lock-in, and reduced flexibility if requirements change. Taxpayers could bear higher costs over the contract's duration. Additionally, reliance on a single source for critical parts might create supply chain vulnerabilities if the contractor faces production issues or geopolitical disruptions.

How does the Cost Plus Fixed Fee structure impact the effectiveness of this contract in achieving value for money?

The Cost Plus Fixed Fee (CPFF) structure aims to provide a reasonable profit margin for the contractor while allowing for flexibility in uncertain projects. However, without competition, the 'fixed fee' might not be as tightly constrained, and the 'cost' portion could be less scrutinized. This structure can be less effective in driving down costs compared to fixed-price contracts, especially when competition is absent.

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: $30,768,621

Exercised Options: $30,111,305

Current Obligation: $30,111,305

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $804,069

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