DoD Awards L3Harris $28.85M for BIG SAFARI Aircraft Parts, Raising Oversight Concerns

Contract Overview

Contract Amount: $28,850,072 ($28.9M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-03-15

End Date: 2027-02-28

Contract Duration: 715 days

Daily Burn Rate: $40.4K/day

Competition Type: NOT COMPETED

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 $28.9 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $28.85 million awarded to L3Harris Technologies. 2. Sole-source award raises questions about competition and potential price inflation. 3. Contract duration of 715 days extends over a significant period. 4. Focus on 'Other Aircraft Parts' suggests a specialized, potentially critical need.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for specialized aircraft parts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $28.85 million contract could lead to suboptimal pricing and reduced value for taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration could mean sustained, potentially inflated, costs. Lack of transparency in sole-source awards hinders public understanding of defense spending. Dependence on a single contractor for critical aircraft parts poses a potential supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition
Limited transparency

Positive Signals

Award to established defense contractor
Supports critical Air Force operations

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is often characterized by high R&D costs, specialized manufacturing, and significant government oversight due to national security implications.

Small Business Impact

The contract was awarded to L3Harris Technologies, a large prime contractor. There is no indication that small businesses were involved as subcontractors in this specific award, which is common for large, sole-source defense contracts.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent cost overruns. The Department of Defense should provide justification for the lack of competition and detail the steps taken to ensure value for money.

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 lacks competition.
Cost Plus Fixed Fee contract type can lead to higher costs.
Limited transparency on specific parts and justification.
Potential for inflated pricing due to lack of competition.
Long contract duration increases exposure to cost fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 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 $28.9 million.

What is the period of performance?

Start: 2025-03-15. End: 2027-02-28.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific details from the Department of Defense, it's difficult to assess the validity of these claims. Ensuring fair and reasonable pricing in such scenarios relies heavily on robust cost analysis, independent government estimates, and potentially negotiation with the sole provider.

What are the specific aircraft parts being procured under BIG SAFARI, and what is the criticality of these components to Air Force operations?

The specific aircraft parts procured under the 'BIG SAFARI' program are not detailed in the provided data. However, the designation suggests they are likely specialized or unique components critical to the operation or maintenance of specific Air Force aircraft. Understanding their criticality is essential for assessing the risk associated with a sole-source award and potential supply chain disruptions.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract, especially given the sole-source nature?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While it incentivizes the contractor to control costs to maximize their fee, the sole-source nature removes competitive pressure. This combination means the government bears the risk of cost overruns, and the fixed fee might be higher than it would be in a competitive environment, potentially reducing overall cost-effectiveness.

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: 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: $28,850,072

Exercised Options: $28,850,072

Current Obligation: $28,850,072

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $872,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline