L3Harris Technologies awarded $112M for aircraft parts, with limited competition and potential value concerns

Contract Overview

Contract Amount: $112,104,993 ($112.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $153.8K/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 $112.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded via other-than-full-and-open competition, raising questions about price discovery. 2. Significant contract value for aircraft parts manufacturing, suggesting a critical need. 3. Limited competition may lead to higher costs for taxpayers. 4. Contract duration of two years indicates ongoing support requirements. 5. The fixed-price contract type shifts some risk to the contractor. 6. Geographic concentration in Texas for contract performance.

Value Assessment

Rating: fair

The contract value of $112.1 million for aircraft parts over two years appears substantial. Benchmarking against similar contracts for specialized aircraft components is difficult without more detailed specifications. However, the 'NOT COMPETED' award type suggests that a competitive price discovery process was not fully utilized, potentially impacting the overall value for money. The firm fixed-price structure provides some cost certainty, but the lack of competitive bidding warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using other-than-full-and-open competition, meaning only one source was solicited. This approach is typically used when specific capabilities or urgent needs preclude a broader competition. The lack of multiple bidders means that the government did not benefit from the price pressures that typically arise in a competitive environment. This can lead to higher prices than might be achieved through a full and open solicitation.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, the government has less leverage to negotiate the lowest possible price for these aircraft parts.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical aircraft parts. Services delivered include the manufacturing and supply of specialized aircraft components. The contract performance is geographically located in Texas. The contract supports the aerospace manufacturing workforce within the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to sole-source award.
Lack of transparency in the selection of L3Harris Technologies.
Risk of contractor lock-in for future requirements.

Positive Signals

Firm fixed-price contract provides cost predictability.
Contract duration allows for sustained supply chain support.
L3Harris Technologies is an established defense contractor.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. This contract for aircraft parts falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry code (NAICS 336413). The market for specialized aircraft components is often concentrated among a few key suppliers due to stringent quality and performance requirements. The $112 million award represents a notable investment in maintaining and supporting military aviation assets.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the award was not set aside for small businesses and the prime contractor is a large entity. There is no explicit information on subcontracting plans for small businesses. This suggests that opportunities for small businesses within the supply chain may be limited unless L3Harris Technologies voluntarily includes them in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon price. Transparency regarding the justification for the sole-source award and the negotiation process would be key to assessing accountability further.

Related Government Programs

Department of Defense Aircraft Procurement
Defense Logistics Agency Support Contracts
Aerospace Manufacturing and Repair Services

Risk Flags

Sole-source award may result in suboptimal pricing.
Lack of transparency in competition justification.
Potential for cost overruns if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.1 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $112.1 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT COMPETED,' which typically implies a sole-source justification. Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required supplies or services, urgent and compelling circumstances that preclude competition, or when a follow-on contract is awarded to the original source for standardization or interoperability reasons. Without further details from the contracting agency, the precise justification remains unknown. However, the nature of specialized aircraft parts often necessitates unique manufacturing capabilities or proprietary technology held by a single entity, making sole-source awards more frequent in this domain.

How does the pricing of this contract compare to similar sole-source awards for aircraft parts?

Directly comparing the pricing of this $112.1 million contract to similar sole-source awards is challenging without access to detailed pricing breakdowns and specific component requirements. Sole-source contracts inherently lack the competitive benchmarking that allows for robust price-to-price comparisons. However, agencies typically conduct internal price analyses, comparing proposed costs against historical data, independent cost estimates, or commercial price lists where applicable. The 'fair' rating in the value assessment suggests that while competitive pressures were absent, the price may be deemed reasonable relative to available information, though potentially higher than a competed scenario.

What are the key performance indicators (KPIs) being used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for contracts involving the manufacturing and delivery of aircraft parts, typical KPIs would likely include on-time delivery rates, adherence to quality standards (e.g., defect rates, compliance with specifications), technical performance of the parts, and potentially cost control measures. The Defense Contract Management Agency (DCMA) would be responsible for monitoring these aspects. The firm fixed-price nature implies that meeting delivery schedules and quality specifications within the agreed budget are paramount.

What is L3Harris Technologies' track record with similar Department of Defense contracts?

L3Harris Technologies is a well-established and significant defense contractor with a broad portfolio of contracts across various defense domains. They have a history of delivering complex systems, components, and services to the Department of Defense. While specific details on their performance for contracts identical to this one are not provided, their overall standing as a major defense industry player suggests a substantial track record. Past performance evaluations and contract award histories would provide a more granular view of their reliability and capability in fulfilling similar requirements.

What is the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?

Historical spending trends for the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) category by the Department of Defense (DoD) generally show consistent and substantial investment. The DoD relies heavily on a robust supply chain for aircraft parts to maintain its vast fleet of military aircraft. Spending in this sector fluctuates based on modernization programs, operational tempo, and sustainment needs. While specific year-over-year figures for this exact NAICS code are not provided, the overall defense budget allocation for aviation sustainment and procurement indicates a sustained demand for such components, often amounting to billions of dollars annually across the entire sector.

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: 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: $113,681,222

Exercised Options: $113,681,222

Current Obligation: $112,104,993

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