DoD Awards L3Harris $35.3M for Aircraft Parts, Raising Concerns Over Competition and Value

Contract Overview

Contract Amount: $35,320,119 ($35.3M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-02-25

End Date: 2027-07-31

Contract Duration: 886 days

Daily Burn Rate: $39.9K/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 $35.3 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $35.3 million awarded to L3Harris Technologies. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Contract duration of 886 days suggests a long-term need for these parts. 4. The 'Other Aircraft Parts' sector is critical for defense readiness.

Value Assessment

Rating: questionable

The contract's value of $35.3 million for 'Other Aircraft Parts' needs further scrutiny, especially given the lack of competitive bidding. Benchmarking against similar contracts for comparable parts is essential to determine if the price is fair and reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning L3Harris was the only vendor considered. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these aircraft parts, potentially leading to inefficient use of public funds.

Public Impact

Taxpayers may be overpaying for essential aircraft parts due to the absence of competition. The Department of Defense's reliance on sole-source contracts can impact overall budget efficiency. Ensuring fair pricing in defense procurement is crucial for national security and fiscal responsibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for inflated pricing

Positive Signals

Critical component for aircraft
Long-term contract duration

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital component of the aerospace and defense industry. Spending in this area is directly tied to maintaining and upgrading military aviation assets.

Small Business Impact

The contract data indicates that small businesses were not involved in this specific award, as it was a sole-source contract awarded to L3Harris Technologies. Further analysis would be needed to determine if small businesses are generally excluded from similar procurements in this sector.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable. The Department of Defense should provide justification for the lack of competition and demonstrate efforts to achieve best value for taxpayer dollars.

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.
Potential for inflated pricing.
Lack of transparency in price discovery.
Requires strong justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 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 $35.3 million.

What is the period of performance?

Start: 2025-02-25. End: 2027-07-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. The Department of Defense should provide documentation detailing these reasons and evidence of price reasonableness analysis, such as cost breakdowns or comparisons to previous similar purchases, to assure taxpayers that the price paid is fair despite the absence of competition.

How does the unit cost of these aircraft parts compare to industry benchmarks or previous contracts awarded competitively?

Without specific unit cost data and a clear definition of the 'Other Aircraft Parts,' a direct benchmark is challenging. However, the absence of competition raises a red flag. A thorough review comparing L3Harris's pricing to publicly available data for similar components or to historical competitive bids for related items is necessary to assess potential overpricing and taxpayer impact.

What is the potential impact on aircraft readiness and operational costs if these parts are procured at a non-competitive, potentially inflated price?

Procuring critical aircraft parts at inflated prices due to a lack of competition can strain the defense budget, potentially diverting funds from other essential readiness initiatives or requiring increased appropriations. This could indirectly impact operational readiness if budget constraints force trade-offs in maintenance, training, or acquisition of other necessary equipment.

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: $35,320,119

Exercised Options: $35,320,119

Current Obligation: $35,320,119

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $8,983,566

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