DoD's $115.5M Big Safari contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $11,551,699 ($11.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-07-09

End Date: 2026-09-30

Contract Duration: 813 days

Daily Burn Rate: $14.2K/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 $11.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value of $115.5 million represents a significant investment in specialized aircraft components. 2. Awarded via a non-competitive process, raising questions about potential cost efficiencies and market alternatives. 3. The duration of 813 days suggests a long-term need for these specific parts or services. 4. L3Harris Technologies, a major defense contractor, is the sole awardee, indicating specialized capabilities. 5. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a niche but critical sector. 6. The 'Cost Plus Fixed Fee' pricing structure requires careful monitoring to ensure value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging due to its non-competitive nature and specialized scope. Without comparable bids, it's difficult to definitively assess if the fixed fee adequately incentivizes efficiency or if the cost-plus component will lead to overruns. The total award of $115.5 million over approximately 2.7 years warrants scrutiny to ensure alignment with market rates for similar, albeit potentially less specialized, aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities, technology, or security clearances required for the specific need. The lack of competition limits the government's ability to leverage market forces to drive down prices and explore alternative solutions.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective solution available. Without a competitive bidding process, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher overall expenditure.

Public Impact

The primary beneficiaries are likely the U.S. Air Force units requiring specialized aircraft parts under the 'Big Safari' program. The contract will ensure the continued availability and maintenance of critical aircraft, supporting national defense readiness. Services delivered are expected to be highly specialized, focusing on unique components for specific aircraft platforms. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located, but the ultimate impact is on Air Force operations nationwide. Workforce implications include the potential for specialized manufacturing and engineering jobs at L3Harris.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Cost-plus contract type can lead to cost overruns if not rigorously managed.
Lack of transparency in the non-competitive justification requires further review.
Specialized nature of parts may limit future interoperability or standardization opportunities.

Positive Signals

Award to a known, established defense contractor (L3Harris) suggests a degree of reliability and existing expertise.
The 'Big Safari' program itself is designed to address unique and rapid acquisition needs, implying strategic importance.
The fixed fee component, if well-defined, can provide some cost predictability.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a specialized segment within the broader aerospace and defense industry. This contract likely supports unique or legacy aircraft systems where off-the-shelf components are not suitable. The total federal spending in this specific sub-sector is difficult to isolate, but the overall aerospace and defense market is substantial, with significant government investment. This contract fits within the government's strategy to maintain and modernize its diverse aircraft fleet, often through specialized acquisition programs like 'Big Safari'.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the award to L3Harris Technologies, a large prime contractor, suggests that small businesses are unlikely to be directly involved as prime awardees. Subcontracting opportunities for small businesses may exist, but their extent and nature would depend on L3Harris's internal subcontracting plans and the specific requirements of the parts being manufactured. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and program management offices, specifically within the Air Force. Given the sole-source nature, enhanced scrutiny from the contracting officer and potentially the Government Accountability Office (GAO) may be warranted. Transparency regarding the justification for the sole-source award and the cost-plus fixed fee elements will be crucial. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Big Safari Program
Air Force Aircraft Maintenance
Specialized Aerospace Components
Defense Industrial Base Manufacturing

Risk Flags

Sole-source award justification requires thorough review.
Cost-plus contract type necessitates robust cost control and oversight.
Potential for cost overruns due to fixed fee and cost-reimbursement elements.
Long contract duration may limit future flexibility and technological adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 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 $11.6 million.

What is the period of performance?

Start: 2024-07-09. End: 2026-09-30.

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

The provided data does not detail the specific justification for the sole-source award. Typically, sole-source contracts are justified when a unique capability, proprietary technology, or critical national security requirement exists that only one vendor can fulfill. For the 'Big Safari' program, this often involves highly specialized, rapidly evolving, or classified systems where competition is impractical or would compromise program objectives. A full review would require access to the Justification and Approval (J&A) document submitted by the agency, which outlines the rationale and market research conducted to support the non-competitive award.

How does the 'Cost Plus Fixed Fee' (CPFF) pricing structure compare to other contract types for similar specialized aircraft parts?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex projects where the final costs are uncertain. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers less cost certainty for the government but can be advantageous when scope is ill-defined or innovation is paramount. For specialized aircraft parts, if the design and manufacturing processes are well-understood, a fixed-price contract might offer better value. However, if the 'Big Safari' context implies novel development or integration, CPFF might be deemed necessary, albeit requiring stringent cost oversight to prevent contractor inefficiencies from inflating the final price.

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

L3Harris Technologies is a major defense contractor with extensive experience across various platforms and programs, including those managed under specialized acquisition initiatives like 'Big Safari.' While specific contract details for L3Harris's involvement in 'Big Safari' are not provided here, the company has a history of performing complex aerospace and defense work. Their track record with sole-source awards would generally be assessed based on past performance reviews, delivery history, and adherence to contract terms on previous government contracts. Agencies often rely on established relationships and demonstrated capabilities when justifying sole-source awards to large, experienced firms like L3Harris.

What are the potential risks associated with the 813-day duration of this contract?

The 813-day duration (approximately 2.7 years) for this contract presents several potential risks. Firstly, it implies a long-term dependency on L3Harris for these specific parts, potentially limiting the government's flexibility to adapt to new technologies or alternative suppliers should they emerge. Secondly, extended contract durations, especially with cost-reimbursement elements, can increase the risk of cost growth over time if not managed proactively. Finally, the longer the contract, the greater the potential for scope creep or changes in requirements that might not be adequately captured in the initial pricing, necessitating contract modifications and potentially increasing the overall expenditure beyond initial projections.

How does this $115.5 million award compare to historical spending on 'Big Safari' or similar specialized aircraft parts acquisition?

Without specific historical spending data for the 'Big Safari' program or precise benchmarks for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under similar acquisition strategies, a direct comparison is difficult. However, $115.5 million is a substantial sum, indicating a significant procurement for specialized components. The 'Big Safari' program is known for addressing unique, often high-priority, and sometimes rapidly evolving requirements, which can lead to higher per-unit costs or larger overall contract values compared to standard, competed procurements. This award should be viewed within the context of the program's mission to acquire specialized capabilities, rather than against typical, mass-produced aircraft parts.

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: $11,551,699

Exercised Options: $11,551,699

Current Obligation: $11,551,699

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline