DoD Awards $86M for BIG SAFARI Aircraft Parts to L3Harris Technologies

Contract Overview

Contract Amount: $86,258,381 ($86.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2026-10-31

Contract Duration: 855 days

Daily Burn Rate: $100.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

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 $86.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $86.26 million. 2. L3Harris Technologies is the sole awardee, raising competition concerns. 3. Contract type is Time and Materials, which can pose cost risks. 4. The award falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The Time and Materials contract type for $86.26 million lacks a fixed price, making it difficult to benchmark against similar fixed-price contracts. The absence of a ceiling price or detailed cost breakdown further complicates value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of market competition.

Public Impact

Taxpayers may be overpaying due to the lack of competition. The long duration (over 2 years) and open-ended contract type could lead to cost overruns. Transparency is limited due to the sole-source award and T&M pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials contract type
Lack of competition
Potential for cost overruns

Positive Signals

Award to established contractor
Supports critical defense needs

Sector Analysis

This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. Benchmarks are difficult without more specific contract details.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the Department of Defense is obtaining fair and reasonable pricing and that competition is pursued whenever feasible.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Time and Materials contract type poses cost risk.
Potential for cost overruns due to contract type and duration.
Lack of transparency in pricing.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.3 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 $86.3 million.

What is the period of performance?

Start: 2024-06-28. End: 2026-10-31.

What specific aircraft or systems does the BIG SAFARI program support, and why is L3Harris the sole source provider?

The BIG SAFARI program likely refers to a classified or highly specialized intelligence, surveillance, and reconnaissance (ISR) initiative within the Air Force. L3Harris Technologies, with its extensive experience in aerospace and defense, is often a prime contractor for such complex systems. The sole-source justification would typically stem from unique proprietary technology, existing system integration expertise, or national security considerations that preclude open competition.

What are the potential cost risks associated with a Time and Materials contract for over $86 million, and how can they be mitigated?

Time and Materials (T&M) contracts carry inherent cost risks as they reimburse the contractor for direct labor hours and material costs, plus a fee. Without a fixed ceiling or detailed cost controls, spending can escalate. Mitigation strategies include establishing a firm ceiling price, requiring detailed cost reporting, implementing strict oversight of labor hours and material usage, and negotiating favorable hourly rates. Regular performance reviews are crucial to monitor spending against projections.

How does the lack of competition in this sole-source award impact the long-term effectiveness and innovation of the BIG SAFARI program?

A lack of competition can stifle innovation and potentially reduce long-term program effectiveness by removing the incentive for the contractor to seek cost efficiencies or develop novel solutions. Without competitive pressure, there's less drive to improve performance or reduce costs. This can lead to complacency and potentially higher sustainment costs over the program's lifecycle, impacting the overall value and capability delivered to the end-user.

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: TIME AND MATERIALS (Y)

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: $86,258,381

Exercised Options: $86,258,381

Current Obligation: $86,258,381

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,153,633

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