DoD's $152.5M Big Safari contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $152,537,036 ($152.5M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2023-11-30

End Date: 2025-03-31

Contract Duration: 487 days

Daily Burn Rate: $313.2K/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 $152.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract value of over $152 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 extends into March 2025, indicating a medium-term need for these specific parts. 4. The primary contractor, L3Harris Technologies, is a major defense supplier, suggesting established capabilities but also potential market concentration. 5. The 'Big Safari' program often involves rapid acquisition of advanced technologies, implying this contract supports cutting-edge aerospace development. 6. The absence of small business participation flags a potential missed opportunity for smaller firms in the defense supply chain.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and potential for highly specialized components under the 'Big Safari' program. Without competitive bids, it's difficult to ascertain if the $152.5 million represents a fair market price. However, given the typical costs associated with advanced aerospace manufacturing and the established reputation of L3Harris, the price may be within an expected range for such specialized work, though a lack of comparison points prevents a definitive value assessment.

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 Integrated Systems L.P., was solicited. This approach is typically used when only one responsible source is available or when urgent and compelling circumstances prevent full and open competition. The lack of multiple bidders means there was no direct price comparison or negotiation leverage derived from a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competition, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are likely the U.S. Air Force and potentially other Department of Defense branches requiring specialized aircraft parts for advanced programs. The contract delivers critical components essential for the operation and enhancement of specific aircraft platforms, supporting national defense capabilities. The geographic impact is primarily centered around L3Harris's operational facilities, likely in Texas, and the end-users within the Department of Defense. Workforce implications include job creation and retention at L3Harris and its potential subcontractors, particularly in specialized manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially inflates costs for taxpayers.
Lack of small business set-aside or participation may exclude smaller innovative firms from contributing.
The 'Big Safari' program's nature can sometimes lead to rapid, less scrutinized spending on advanced technologies.

Positive Signals

Award to L3Harris suggests access to a contractor with proven capabilities in complex aerospace manufacturing.
The contract duration indicates a stable, predictable need for these components, allowing for efficient production planning.
The fixed-price contract type provides some cost certainty for the government, assuming the scope is well-defined.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' subsector. Spending in this area is driven by military modernization programs and sustainment needs. Comparable spending benchmarks are difficult to establish for highly specialized components like those likely procured under the 'Big Safari' program, which focuses on rapid acquisition of advanced capabilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for them. The sole-source nature further limits opportunities for small businesses to enter the supply chain for this particular award. This could represent a missed opportunity to foster innovation and competition among smaller, specialized aerospace firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, scrutiny might focus on the justification for not competing and the reasonableness of the price. Transparency is limited due to the lack of competitive bidding. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Big Safari Program
Aircraft Parts Manufacturing
Defense Procurement
Sole-Source Contracts
Aerospace Components

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $152.5 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 $152.5 million.

What is the period of performance?

Start: 2023-11-30. End: 2025-03-31.

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

The provided data indicates the contract was awarded as 'NOT COMPETED'. While the specific justification is not detailed in the data, sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations. These often include situations where only one responsible source possesses the unique capability or technology required, or when urgent and compelling circumstances make a competitive process impractical. For programs like 'Big Safari,' which focus on rapid acquisition of advanced capabilities, sole-source awards might be used to expedite delivery of critical, cutting-edge components or systems where a single contractor has demonstrated unique expertise or holds necessary intellectual property.

How does the $152.5 million contract value compare to similar 'Big Safari' program awards or other specialized aircraft parts contracts?

Direct comparison of the $152.5 million contract value is challenging without access to detailed historical data for the 'Big Safari' program and specific component types. The 'Big Safari' program is known for acquiring specialized, often classified, systems and technologies, meaning contract values can vary widely based on complexity and scope. However, a contract of this magnitude suggests a significant procurement, likely for advanced avionics, sensor systems, or unique structural components. Benchmarking against publicly available data for standard aircraft parts manufacturing would be misleading due to the specialized nature of 'Big Safari' acquisitions. The lack of competition further complicates value assessment against market rates.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may pay a premium for the goods or services. Other risks include a lack of innovation that might have been spurred by competition, potential vendor lock-in, and reduced transparency in pricing. There's also a risk that the government might not be aware of alternative solutions or more cost-effective approaches that other capable vendors could offer. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

What is L3Harris Technologies' track record with the 'Big Safari' program and similar sole-source contracts?

L3Harris Technologies is a major defense contractor with a significant history of supporting various Department of Defense programs, including those under the 'Big Safari' umbrella. While specific details on their past 'Big Safari' contracts and sole-source awards are often proprietary or classified, their established presence suggests they are a go-to provider for complex aerospace and defense solutions. Their track record likely includes successful delivery of advanced systems, but also potentially includes scrutiny over sole-source awards, as is common for large defense contracts. A deeper dive into contract databases and defense news archives would be needed to fully assess their specific performance and pricing history on similar sole-source procurements.

What are the implications of the contract's fixed-firm price type for cost control and risk?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts most of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides budget certainty for the government. However, for highly specialized or R&D-intensive procurements, like those often associated with the 'Big Safari' program, an FFP contract can be challenging if the scope is not perfectly defined. If unforeseen technical challenges arise, the contractor might incur losses, potentially impacting their willingness or ability to perform, or leading to change orders that increase the overall cost. Conversely, if the contractor manages costs effectively, they retain any savings, incentivizing efficiency.

How does this contract fit into the broader context of Department of the Air Force spending on aircraft parts and modernization?

This $152.5 million contract represents a specific, albeit substantial, investment within the Department of the Air Force's (DAF) overall budget for aircraft sustainment, modernization, and new capabilities. The 'Big Safari' program specifically targets rapid acquisition of advanced technologies, suggesting this contract supports a high-priority, potentially next-generation, capability. While the DAF spends billions annually on aircraft procurement, maintenance, and upgrades, contracts like this highlight the significant expenditure on specialized components that enable advanced performance or unique mission sets, often procured outside traditional, longer-term development cycles.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $152,537,036

Exercised Options: $152,537,036

Current Obligation: $152,537,036

Subaward Activity

Number of Subawards: 102

Total Subaward Amount: $16,080,287

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