DoD's $32.7M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $32,736,035 ($32.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2029-01-31

Contract Duration: 1,503 days

Daily Burn Rate: $21.8K/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 $32.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $32.7 million represents a significant investment in specialized aircraft components. 2. The sole-source nature of this award raises questions about potential price inflation and limited market engagement. 3. A long performance period of over 5 years suggests a need for sustained supply or complex integration. 4. The absence of competition may indicate a lack of readily available alternatives or a highly specialized requirement. 5. This contract falls under the 'Other Aircraft Parts' manufacturing NAICS code, highlighting its specific industrial focus.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of 'BIG SAFARI' components. Without competitive bids, it's difficult to ascertain if the $32.7 million price reflects fair market value. Comparisons to similar sole-source awards for highly specialized aerospace parts would be necessary for a more robust assessment, but such data is often proprietary. The firm fixed-price contract type offers some cost certainty, but the lack of competition limits the government's ability to negotiate the best possible price.

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 justified when a unique capability or proprietary technology is required, or when only one responsible source can fulfill the requirement. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces or encourage innovation from multiple vendors.

Taxpayer Impact: Taxpayers may be paying a premium for this requirement due to the absence of competitive pressure. Without alternative bids, there is less assurance that the price reflects the lowest possible cost for the goods or services procured.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially specific military operations relying on the 'BIG SAFARI' program's components. The contract will deliver specialized aircraft parts and auxiliary equipment, crucial for maintaining and enhancing the operational readiness of Air Force assets. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. Workforce implications may include sustained employment for skilled manufacturing and engineering personnel at L3Harris, contributing to the aerospace sector's labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may stifle innovation by not engaging a broader range of suppliers.
Long contract duration could lead to cost overruns if not managed effectively.
Specific details on the 'BIG SAFARI' program are limited, hindering public understanding of the necessity for sole-sourcing.

Positive Signals

Award to an established contractor like L3Harris suggests a level of trust in their capability and reliability.
Firm fixed-price contract provides cost certainty for the government.
The contract supports critical defense capabilities, ensuring operational readiness.
The specific NAICS code indicates a focus on a specialized manufacturing niche.

Sector Analysis

The aerospace and defense manufacturing sector is characterized by high barriers to entry, complex supply chains, and significant government investment. This contract for 'Other Aircraft Parts' fits within this sector, likely supporting specialized components for military aircraft. The market for such parts can be niche, with a limited number of qualified suppliers, sometimes leading to sole-source procurements. Comparable spending benchmarks would typically involve analyzing other contracts for similar specialized aircraft components within the DoD, which often run into millions of dollars due to the high-tech and stringent quality requirements.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The sole-source nature further reduces the likelihood of small business participation unless they are direct subcontractors to L3Harris. This award does not appear to directly benefit the small business ecosystem in this specific procurement.

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 contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature and the proprietary aspects of defense contracting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics
Aerospace Components
Military Aircraft Support
BIG SAFARI Program

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 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 $32.7 million.

What is the period of performance?

Start: 2024-12-20. End: 2029-01-31.

What is the specific nature of the 'BIG SAFARI' program and why is it critical to the Air Force?

The 'BIG SAFARI' (Big Safari) program is a long-standing initiative within the U.S. Air Force Special Operations Command (AFSOC) and Air Force Materiel Command (AFMC) focused on rapidly developing and fielding specialized intelligence, surveillance, reconnaissance (ISR), and electronic warfare capabilities. It is known for its agility in acquiring and modifying aircraft for unique mission requirements, often involving cutting-edge technology. The criticality stems from its role in providing the Air Force with adaptable platforms to address evolving threats and intelligence needs, offering a distinct advantage in complex operational environments. Contracts under BIG SAFARI often involve highly customized modifications and unique components, explaining the specialized nature of this L3Harris award.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award, especially one valued at $32.7 million, is the potential for inflated pricing. Without competitive bids, the government lacks the leverage of market forces to ensure the best possible price. This can lead to taxpayers footing a higher bill than necessary. Another risk is reduced innovation; by not engaging multiple vendors, the government misses out on potentially novel solutions or more cost-effective approaches that other companies might offer. Furthermore, sole-source awards can create dependency on a single contractor, which can be problematic if that contractor faces financial difficulties, quality issues, or supply chain disruptions. Finally, the lack of transparency inherent in sole-sourcing can make it harder to justify the expenditure to the public and oversight bodies.

How does the firm fixed-price contract type mitigate risks for the government in this sole-source scenario?

The firm fixed-price (FFP) contract type is beneficial for the government, even in a sole-source situation, as it shifts the majority of the cost risk to the contractor. Under an FFP contract, the price is set and not subject to adjustment unless specific contract clauses allow for it (e.g., economic price adjustments, which are rare). This means L3Harris is obligated to deliver the specified aircraft parts for the agreed-upon $32.7 million, regardless of their actual costs incurred. If their costs are higher than anticipated, they absorb the loss; if lower, they retain the profit. This provides budget certainty for the Department of the Air Force and protects against cost overruns that might occur with cost-reimbursement contracts, although it doesn't guarantee the lowest possible price due to the lack of competition.

What is L3Harris Technologies Integrated Systems L.P.'s track record with the Department of Defense, particularly in specialized aircraft components?

L3Harris Technologies, and its predecessor companies, have a long and extensive track record of supplying complex systems and components to the Department of Defense, including the Air Force. They are a major defense contractor known for expertise in areas such as electronic warfare, communications, sensors, and integrated mission systems. Their involvement in programs like 'BIG SAFARI' is consistent with their capabilities in developing and integrating specialized technologies onto aircraft platforms. While specific performance metrics for individual contracts are often not public, L3Harris's continued success in securing large DoD contracts suggests a generally positive performance history and a strong capability to meet demanding military requirements for advanced aerospace components and systems.

Are there any publicly available benchmarks for similar specialized aircraft parts contracts awarded competitively?

Publicly available benchmarks for highly specialized aircraft parts, especially those tied to specific, often classified, programs like 'BIG SAFARI,' are scarce. Competitive contracts for more standardized aircraft components (e.g., engines, landing gear) can be found in federal procurement databases, but these often lack the unique technological integration or customization associated with specialized ISR or EW systems. When comparing, one would look for contracts with similar NAICS codes (like 336413) awarded to different prime contractors. However, the 'sole-source' designation for this L3Harris contract means direct competitive price comparisons are not possible. Analysis would require deep dives into contract histories for similar specialized systems, often requiring access to proprietary data or specialized defense market intelligence reports.

What are the implications of the contract's long duration (ending Jan 2029) for sustainment and potential obsolescence?

The contract's duration, extending to January 31, 2029 (over five years), implies a need for sustained supply of these specialized aircraft parts and potentially ongoing integration or support services. A long duration can be advantageous for ensuring supply chain stability and predictability for critical components. However, it also introduces risks related to technological obsolescence. If the underlying technology or the aircraft platforms these parts support evolve rapidly, the components procured under this contract could become outdated before the contract expires. Effective contract management would involve monitoring technological advancements and potentially incorporating provisions for upgrades or replacements if necessary to ensure the long-term utility and effectiveness of the supported systems.

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: $32,736,035

Exercised Options: $32,736,035

Current Obligation: $32,736,035

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $804,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline