DoD's $18.7M Big Safari contract awarded to L3Harris for aircraft parts, raising value-for-money questions

Contract Overview

Contract Amount: $18,704,011 ($18.7M)

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: $25.7K/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: WACO, MCLENNAN County, TEXAS, 76705

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value-for-money is questionable given the lack of competition and cost-plus contract type. 2. Competition dynamics are limited, with a sole-source award suggesting potential for higher costs. 3. Risk indicators include the cost-plus fixed fee structure, which can incentivize cost overruns. 4. Performance context is unclear without specific details on the aircraft parts and their criticality. 5. Sector positioning is within the defense manufacturing industry, specifically aircraft parts. 6. The contract duration of 729 days suggests a significant, ongoing need for these parts.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, raises concerns about value for money. Without competitive bidding, it is difficult to benchmark pricing against market rates or similar contracts. The fixed fee component provides some cost control, but the "cost plus" element means the government bears the risk of increased costs, potentially leading to a higher final price than if the contract were competed.

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 limits the opportunity for multiple vendors to bid, which typically drives down prices and fosters innovation. The lack of competition suggests that L3Harris was the only viable source identified by the agency, or that the agency determined competition was not practicable for specific reasons.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This also reduces transparency in pricing.

Public Impact

The primary beneficiaries are the Department of Defense and potentially specific Air Force units requiring these aircraft parts. The services delivered involve the manufacturing and supply of specialized aircraft parts, crucial for maintaining operational readiness. The geographic impact is primarily within Texas, where L3Harris is located, but the ultimate impact is on Air Force operations nationwide. Workforce implications include employment at L3Harris and its supply chain, supporting specialized manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Cost-plus contract type shifts cost risk to the government.
Limited transparency on the specific parts and their necessity.
Potential for contractor to prioritize cost recovery over efficiency.

Positive Signals

Award to an established defense contractor with existing capabilities.
Contract duration suggests a sustained need, potentially indicating critical components.
Fixed fee component offers some level of cost predictability.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for defense aircraft components is characterized by high barriers to entry, specialized manufacturing requirements, and significant government oversight. Spending in this area is driven by military readiness needs and the lifecycle support of complex aircraft systems. Comparable spending benchmarks would typically involve other sole-source or limited-competition awards for similar specialized parts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract, potentially impacting the small business ecosystem within this niche of defense manufacturing.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management regulations. Accountability measures are typically embedded within the contract terms, including reporting requirements and performance standards. Transparency is limited due to the sole-source award and the nature of defense contracting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Defense Logistics Agency (DLA) contracts
Air Force Sustainment Center contracts
Big Safari program contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Cost-plus contract type shifts cost risk to the government.
Potential for lack of transparency in specific part requirements.
Dependency on a single supplier for critical aircraft components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 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 $18.7 million.

What is the period of performance?

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

What specific aircraft parts are being procured under this contract, and why was L3Harris identified as the sole source?

The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. However, the specific parts are not detailed. The 'Big Safari' program often deals with highly specialized, classified, or rapidly evolving technologies for special operations forces and intelligence gathering aircraft. L3Harris Technologies is a major defense contractor with extensive experience in aerospace systems, avionics, and electronic warfare. The sole-source justification likely stems from proprietary technology, unique manufacturing capabilities, existing integration with specific platforms, or urgent operational needs where competition is deemed impractical or would cause unacceptable delays. Further details would require access to the contract's justification for other than full and open competition (J&A).

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar defense procurements, and what are the implications for cost control?

Cost Plus Fixed Fee (CPFF) contracts are common in defense procurement, especially for research, development, and complex systems where cost estimation is difficult. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it shifts the primary cost risk to the government, as the government pays all allowable costs incurred. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility when requirements are uncertain but provides less cost certainty for the government. For specialized aircraft parts, if requirements are well-defined, an FFP contract might offer better value. The CPFF here, combined with sole-source, suggests a high degree of uncertainty or unique requirements.

What is the historical spending pattern for 'Big Safari' program contracts, and how does this award compare in size and scope?

The 'Big Safari' program is an Air Force acquisition framework focused on rapidly developing and fielding capabilities for special operations and intelligence, surveillance, and reconnaissance (ISR) missions. Historical spending within 'Big Safari' is diverse, encompassing a wide range of technologies from sensors and communication systems to aircraft modifications and specialized payloads. Contracts under this program can range from small, rapid prototyping efforts to multi-million dollar system integrations. An $18.7 million award for aircraft parts is a significant, but not exceptionally large, sum within the context of the overall 'Big Safari' portfolio. It suggests a substantial need for specific components, potentially for a particular aircraft platform or upgrade, rather than a broad system development effort. Analyzing historical spending would require a deeper dive into specific 'Big Safari' sub-programs and contract vehicles.

What are the potential risks associated with awarding a sole-source contract for aircraft parts, particularly concerning supply chain integrity and long-term availability?

Sole-source awards for critical components like aircraft parts carry several risks. Firstly, the lack of competition can lead to higher prices and reduced incentive for the contractor to innovate or improve efficiency. Secondly, it creates a dependency on a single supplier, potentially jeopardizing the supply chain if the contractor faces financial difficulties, production issues, or decides to exit the market. This dependency can also impact long-term availability and maintenance support. For defense applications, ensuring the integrity of the supply chain against counterfeits or substandard parts is paramount. A sole-source award necessitates robust government oversight to ensure quality, fair pricing, and continuous availability, often requiring close collaboration and potentially government investment in ensuring the supplier's stability.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413) typically operate in terms of competition and pricing for defense contracts?

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413) is a critical segment of the aerospace and defense industrial base. Competition within this sector for defense contracts can vary significantly. While some parts may be produced by multiple qualified manufacturers, many are highly specialized, proprietary, or require specific certifications and long-standing relationships with prime contractors or the government. This can lead to limited or sole-source procurements, especially for components integrated into complex weapon systems or those with unique performance requirements. Pricing is influenced by factors such as material costs, specialized labor, R&D investment, certification requirements, and the level of competition. Defense contracts in this area often involve stringent quality control and testing, which adds to the overall cost.

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: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,468,831

Exercised Options: $19,288,747

Current Obligation: $18,704,011

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $82,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862020G4050

IDV Type: BOA

Timeline