DoD Awards $49.3M for Group B Equipment to L3Harris Technologies, No Competition

Contract Overview

Contract Amount: $49,348,048 ($49.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-06-14

End Date: 2024-12-31

Contract Duration: 200 days

Daily Burn Rate: $246.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GROUP B EQUIPMENT (3010) BP11

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $49.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: GROUP B EQUIPMENT (3010) BP11 Key points: 1. Significant award to a single large contractor, L3Harris Technologies. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a critical defense sector. 4. The award represents a substantial portion of the total contract value, indicating a key procurement.

Value Assessment

Rating: questionable

The award of $49.3 million without competition makes it difficult to assess value. Benchmarking against similar contracts for 'Other Aircraft Parts' is challenging without competitive data. The firm fixed price contract type offers some cost certainty, but the lack of competition limits the government's ability to secure the best possible price.

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 bypasses the standard competitive bidding process, potentially leading to higher prices and reduced innovation. The government may have justified this due to specific technical requirements or existing relationships, but transparency on this justification is key.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for the Group B Equipment. Without competitive pressure, the contractor may not have an incentive to offer the lowest possible price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Air Force is procuring essential aircraft parts, impacting operational readiness. L3Harris Technologies, a major defense contractor, receives a significant sole-source award. The contract duration of approximately 6 months suggests an urgent or specific need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Firm fixed price contract
Awarded to established defense contractor

Sector Analysis

The procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', a vital segment of the aerospace and defense industry. Spending in this sector is often characterized by high technical requirements and long development cycles, but competitive bidding is typically encouraged to manage costs effectively.

Small Business Impact

This award went to L3Harris Technologies, a large prime contractor, and there is no indication that small businesses were involved as subcontractors or partners in this specific delivery order. Further analysis would be needed to determine if small business participation is mandated or encouraged in the broader contract vehicle.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies. It is important to ensure that the justification for not competing the contract was valid and that the pricing is reasonable. Transparency regarding the procurement process and cost justification is crucial for accountability.

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 inflated pricing
Limited transparency on justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. GROUP B EQUIPMENT (3010) BP11

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 $49.3 million.

What is the period of performance?

Start: 2024-06-14. End: 2024-12-31.

What is the justification for awarding this contract sole-source, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves specific technical requirements, unique capabilities, or urgent needs that only one contractor can fulfill. The price is usually determined through negotiation and comparison with historical data or market research. Without access to the government's justification documentation and cost analysis, it's difficult to definitively assess the fairness and reasonableness of the price in this instance.

What are the potential risks associated with awarding a $49.3 million contract without competition for aircraft parts?

The primary risk is paying a non-competitive price, leading to inefficient use of taxpayer funds. Other risks include reduced incentive for the contractor to innovate or improve efficiency, potential for vendor lock-in, and a missed opportunity to foster competition among multiple suppliers, which could lead to better long-term pricing and technological advancements.

How does this sole-source award impact the Department of the Air Force's ability to ensure cost-effectiveness and value for money in its procurement of aircraft parts?

Sole-source awards inherently reduce the government's leverage in achieving cost-effectiveness and value for money, as the competitive pressure that drives down prices is absent. While a firm fixed price contract provides some cost certainty, the absence of competition means the government relies heavily on the contractor's pricing integrity and the government's negotiation skills, rather than market forces, to ensure value.

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: $49,348,048

Exercised Options: $49,348,048

Current Obligation: $49,348,048

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $36,753,058

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