DoD's $46.7M BIG SAFARI contract awarded to L3Harris for aircraft parts, with limited competition

Contract Overview

Contract Amount: $46,690,970 ($46.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-06-04

End Date: 2026-12-31

Contract Duration: 940 days

Daily Burn Rate: $49.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

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 $46.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value of $46.7 million over 940 days indicates significant investment in specialized aircraft components. 2. Awarded to a single bidder, raising questions about competitive pricing and potential for cost overruns. 3. The contract's duration suggests a long-term need for these specific aircraft parts. 4. Limited competition may restrict opportunities for other manufacturers to enter the market. 5. The 'Other Aircraft Parts' classification points to a niche but critical segment of aerospace manufacturing. 6. Performance will be monitored by the Department of the Air Force, with oversight on delivery and quality.

Value Assessment

Rating: questionable

The contract value of $46.7 million for 940 days, averaging approximately $49,671 per day, needs benchmarking against similar sole-source awards for specialized aircraft parts. Without competitive bids, it is difficult to definitively assess if this represents fair market value. The cost-plus-fixed-fee structure means the government bears the cost risk, and the final price could exceed initial estimates if costs escalate.

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 considered. This approach is typically used when only one source is capable of meeting the requirement, often due to proprietary technology or unique capabilities. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government did not benefit from the cost-saving mechanisms that typically arise from multiple bids.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other branches of the DoD requiring specialized aircraft parts. The contract will deliver essential components for aircraft maintenance, repair, and potentially upgrades, ensuring operational readiness. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, potentially supporting local jobs and the regional aerospace economy. Workforce implications include skilled labor in manufacturing, engineering, and quality assurance within L3Harris's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost-plus-fixed-fee contract shifts cost overrun risk to the government.
Lack of transparency in the sole-source justification process.
Limited visibility into the specific components being procured and their criticality.
Potential for vendor lock-in due to specialized nature of parts.

Positive Signals

Award to an established contractor with presumed expertise in aerospace manufacturing.
Contract supports critical defense needs for aircraft operational readiness.
Long-term contract duration suggests a stable and predictable supply chain for essential parts.
Delivery orders indicate a structured approach to phased procurement.

Sector Analysis

The aerospace manufacturing sector is highly specialized, with significant barriers to entry due to technological complexity, stringent quality standards, and regulatory requirements. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. The total market for aircraft parts is substantial, driven by both commercial and defense needs. Benchmarking this contract's value would require comparing it to similar sole-source or limited-competition awards for highly specialized components within the defense aerospace industry.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). The award to L3Harris Technologies Integrated Systems L.P., a large defense contractor, suggests that subcontracting opportunities for small businesses may exist within the supply chain. However, without specific subcontracting plans mandated or disclosed, the direct impact on the small business ecosystem is uncertain. The absence of a set-aside means small businesses did not have a direct opportunity to compete for the prime contract.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force. As a sole-source award, the justification and negotiation process would have undergone internal review. The cost-plus-fixed-fee structure necessitates close monitoring of expenditures to ensure costs remain within reasonable bounds and that the fixed fee is justified. Transparency may be limited due to the sole-source nature, but contract performance metrics and financial reporting should be subject to standard DoD oversight mechanisms.

Related Government Programs

BIG SAFARI Program
Aircraft Parts Procurement
Defense Logistics Agency Contracts
Air Force Sustainment Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 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 $46.7 million.

What is the period of performance?

Start: 2024-06-04. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies Integrated Systems L.P.?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a strong indicator of a sole-source justification. Typically, such justifications are based on factors like unique technical capabilities, proprietary technology, urgent and compelling needs where only one source can reasonably satisfy the requirement, or specific government-unique requirements. For the BIG SAFARI program, it's common for specific components or systems to be developed or manufactured by a single entity due to intellectual property rights or highly specialized production processes. A detailed review of the contract file, including the Justification and Approval (J&A) document, would be necessary to ascertain the precise reasons.

How does the cost-plus-fixed-fee (CPFF) pricing structure impact the government's financial risk compared to other contract types?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts a significant portion of the financial risk to the government, as the total contract cost can fluctuate based on actual expenses. If the contractor's costs exceed initial estimates, the government pays the higher amount. While the fixed fee provides some predictability for the contractor's profit, it offers less cost certainty for the government compared to fixed-price contracts. This type of contract is often used when the scope of work is not well-defined or involves research and development where cost uncertainties are high.

What are the potential risks associated with awarding a $46.7 million contract with limited competition?

The primary risk of limited competition, especially in a sole-source scenario, is the potential for inflated pricing. Without competing bids, the government loses the benefit of market forces driving down costs. This can lead to the government paying more than it would in a fully competitive environment. Additionally, sole-source awards can reduce innovation by limiting the entry of new players and may lead to a lack of urgency from the contractor to control costs, as the government bears the financial risk. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier for critical components.

What is the historical spending pattern for the BIG SAFARI program or similar aircraft parts procurements by the Department of the Air Force?

The provided data does not include historical spending patterns for the BIG SAFARI program or similar procurements. To assess historical spending, one would need to access contract databases (like FPDS or SAM.gov) and query for past awards under the BIG SAFARI program or for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of the Air Force. Analyzing trends in contract values, competition levels, and contractor performance over time would provide context for the current $46.7 million award. Understanding past spending can help identify patterns of sole-source awards, cost trends, and the overall investment in this category.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly in sole-source contracts?

L3Harris Technologies Integrated Systems L.P. is a significant defense contractor with a substantial history of awards from the Department of Defense across various programs and services. While specific details on their track record with sole-source contracts are not provided here, their position as a major industry player suggests they have experience navigating sole-source award processes. A comprehensive assessment would involve reviewing their past performance ratings (e.g., CPARS), the number and value of previous sole-source awards, and any associated controversies or successes. Their extensive portfolio indicates a capacity to fulfill complex defense requirements, but the nature of sole-source awards warrants scrutiny regardless of the contractor's reputation.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

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: $46,690,970

Exercised Options: $46,690,970

Current Obligation: $46,690,970

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $942,065

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