DoD's $9.39M BIG SAFARI Contract Awarded to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $9,387,161 ($9.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $12.9K/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 $9.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $9.39 million for aircraft parts. 2. Sole-source award to L3Harris Technologies raises questions about competition. 3. Potential risk associated with limited competition and cost-plus contract type. 4. Spending falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, suggests potential for cost overruns. Benchmarking against similar sole-source contracts for specialized aircraft parts is difficult without more data, but the lack of competition inherently limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition in this sole-source award could result in higher costs for taxpayers, as there was no market pressure to drive down prices.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense relies on L3Harris for critical aircraft components, highlighting potential supply chain risks. Limited transparency into the pricing mechanisms of sole-source contracts can erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing

Positive Signals

Award to established defense contractor
Supports critical aircraft parts

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks for sole-source contracts in this niche are hard to establish, but competitive awards typically yield better value.

Small Business Impact

This award went to L3Harris Technologies, a large prime contractor, and there is no indication that small businesses were involved in this specific sole-source delivery order. Further analysis would be needed to determine if subcontracting opportunities were offered.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable. Transparency regarding the justification for the sole-source award and the cost breakdown is essential for accountability.

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.
Cost-plus contract type increases risk of overruns.
Lack of transparency in pricing for sole-source contracts.
Potential for higher taxpayer cost due to no competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 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 $9.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

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

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Agencies must still conduct market research and negotiate pricing to ensure it is fair and reasonable, often by comparing to historical data or independent cost estimates, though this is more challenging without competition.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized aircraft parts, especially when awarded sole-source?

CPFF contracts carry inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. When awarded sole-source, the government lacks the leverage of competition to drive down costs, increasing the likelihood of paying more than necessary. For specialized aircraft parts, unique technical requirements can further complicate cost estimation and oversight, amplifying these risks.

How does this sole-source award impact the overall competitiveness and innovation within the aircraft parts manufacturing sector for the Department of Defense?

Sole-source awards, while sometimes necessary, can stifle competition and innovation over time by limiting opportunities for other companies to enter the market or develop competing technologies. This can lead to a reliance on a few key suppliers, potentially reducing the government's bargaining power and slowing the pace of technological advancement in the long run.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $26,340,905

Exercised Options: $13,191,932

Current Obligation: $9,387,161

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $99,951

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