DoD's $53.3M 'BIG SAFARI' contract awarded to L3Harris for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $53,343,694 ($53.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-08-26

End Date: 2026-10-21

Contract Duration: 786 days

Daily Burn Rate: $67.9K/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 $53.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of 786 days suggests a significant need for ongoing support or development. 3. The lack of competition raises questions about whether the government secured the best possible value. 4. The specific nature of 'BIG SAFARI' is not detailed, making it difficult to benchmark performance. 5. The contract's value, while substantial, needs further context against similar specialized aircraft component procurements. 6. The absence of small business involvement is noted, with no set-aside or subcontracting requirements indicated.

Value Assessment

Rating: questionable

The contract's value of $53.3 million for aircraft parts and auxiliary equipment is difficult to assess without detailed scope information. As a sole-source award, direct price comparisons to other competitive bids are impossible. Benchmarking against similar specialized aircraft component contracts would be necessary to determine if the pricing is fair. The fixed-firm price structure offers some cost certainty, but the lack of competition means the government may not have achieved optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down prices. The government did not benefit from the cost-saving mechanisms that open competition usually provides.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving specialized aircraft parts and auxiliary equipment. This contract supports the operational readiness and maintenance of specific Air Force aircraft. The geographic impact is primarily within Texas, where L3Harris is located, but the ultimate impact is on Air Force operations nationwide. The contract supports specialized manufacturing roles within L3Harris, contributing to the aerospace and defense workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for money.
Lack of transparency regarding the 'BIG SAFARI' program makes performance assessment difficult.
No indication of small business participation or subcontracting opportunities.
Long contract duration (786 days) could indicate potential for cost overruns if not managed tightly.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established contractor (L3Harris) suggests potential for reliable delivery.
Contract supports critical defense needs for the Air Force.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category, a niche within the broader defense industrial base. The market for specialized aircraft components is often concentrated, with a few key players possessing the necessary expertise and certifications. Spending in this area is driven by the need to maintain and upgrade aging fleets, as well as to support new aircraft development.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there any indication of subcontracting goals for small businesses. The award to a large prime contractor like L3Harris suggests that the primary focus is on direct delivery of goods or services. This could limit opportunities for small businesses to participate in the defense supply chain related to this specific contract, potentially impacting the broader small business ecosystem within the aerospace sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature and the proprietary aspects of 'BIG SAFARI'. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace and Defense Procurement
Department of Defense Supply Chain Management
Sole-Source Defense Contracts
Air Force Logistics and Sustainment

Risk Flags

Sole-source award may result in suboptimal pricing.
Lack of public detail on 'BIG SAFARI' hinders transparency and oversight.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.3 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 $53.3 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-10-21.

What is the specific nature and purpose of the 'BIG SAFARI' program this contract supports?

The 'BIG SAFARI' (Broad Area Ground Support and Aviation Reconnaissance Integration) program is a classified initiative within the Department of the Air Force focused on providing specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. Contracts under this umbrella typically involve the modification, integration, and sustainment of aircraft platforms and associated systems to enhance their ISR functions. The specific nature of the parts and auxiliary equipment procured under this $53.3 million contract is not publicly detailed due to the sensitive and classified operational context of the 'BIG SAFARI' program. This lack of public detail makes it challenging to benchmark the contract's value or assess its specific performance metrics against publicly available data.

How does the $53.3 million value compare to historical spending on similar 'BIG SAFARI' components or related ISR aircraft modifications?

Direct comparison of the $53.3 million value to historical spending on 'BIG SAFARI' components is difficult due to the classified nature of the program and the sole-source award. Publicly available data on specific 'BIG SAFARI' sub-contracts or component procurements is scarce. However, the Department of Defense frequently awards large contracts for ISR platform modifications and sustainment, often in the tens to hundreds of millions of dollars. Without knowing the precise scope of work, it's hard to definitively state if $53.3 million is high or low. Benchmarking would require access to internal DoD cost estimates, historical sole-source justifications, or data from competitive procurements for analogous ISR system upgrades.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with awarding a $53.3 million contract on a sole-source basis is the potential for reduced value for money. Without competitive bidding, the government lacks the leverage to negotiate the lowest possible price, potentially leading to higher costs for taxpayers. There's also a risk that the government might not be exposed to innovative solutions or technologies that other qualified vendors could offer. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single contractor, which can create dependency and limit future sourcing flexibility. Ensuring fair and reasonable pricing through rigorous negotiation and cost analysis becomes paramount in such situations.

What performance metrics or key performance indicators (KPIs) are likely being used to evaluate L3Harris's delivery under this contract?

While specific KPIs for this classified 'BIG SAFARI' contract are not public, typical performance metrics for aircraft parts and auxiliary equipment contracts include on-time delivery rates, quality acceptance rates (minimizing defects), adherence to technical specifications, and compliance with contractual requirements. For a firm fixed-price contract, meeting delivery schedules and quality standards without exceeding the agreed-upon price are critical. Given the ISR context, performance might also implicitly include factors related to the reliability and effectiveness of the delivered components in supporting operational missions, though these might be tracked separately or through broader program-level assessments rather than direct contract KPIs.

What is L3Harris Technologies' track record with the Department of Defense, particularly on classified or specialized aircraft programs?

L3Harris Technologies is a major defense contractor with a substantial track record of performing work for the Department of Defense across various platforms and programs, including those involving intelligence, surveillance, and reconnaissance (ISR). They have a history of providing complex systems integration, avionics, and specialized aircraft modifications. While specific details on their involvement in classified programs like 'BIG SAFARI' are limited by security protocols, their overall portfolio suggests significant experience in handling sensitive and technologically advanced defense contracts. Their performance on other DoD contracts, including those with similar technical requirements or security classifications, would be a key indicator of their capability and reliability for this specific award.

Are there any known issues or concerns regarding L3Harris's past performance on similar sole-source contracts with the Air Force?

Information regarding specific past performance issues on sole-source contracts for L3Harris with the Air Force is not readily available in the public domain, largely due to the classified nature of many such procurements and the proprietary details of contract performance evaluations. Defense contractors undergo regular performance reviews, but the outcomes of these are typically internal to the government and the contractor. While L3Harris is a large and established entity, any contractor can face challenges. Without specific public reports or declassified data, it's difficult to ascertain any particular concerns related to their sole-source contract performance on classified Air Force programs.

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: $53,495,918

Exercised Options: $53,343,694

Current Obligation: $53,343,694

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,432,616

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