DoD Awards $23.5M Contract to L3Harris for Aircraft Parts, Raising Oversight Concerns
Contract Overview
Contract Amount: $23,512,053 ($23.5M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2025-07-24
End Date: 2027-07-23
Contract Duration: 729 days
Daily Burn Rate: $32.3K/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 $23.5 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $23.5 million awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for 'Other Aircraft Parts,' a broad category with potential for cost escalation. 4. Focus on a single vendor may limit opportunities for small businesses in this sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without competitive bidding, it's difficult to benchmark pricing against similar contracts or market rates.
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 potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition suggests taxpayers may not be receiving the best possible value for this $23.5 million expenditure.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the specific aircraft parts being procured. Potential for cost overruns given the contract type and lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation noted
Positive Signals
- Contract awarded to a known entity (L3Harris)
- Clear end date for contract performance
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in defense aerospace manufacturing can be substantial, but competitive bidding is crucial for efficiency.
Small Business Impact
The data indicates that small business participation was not a factor in this award. Sole-source contracts often bypass opportunities for small businesses to compete and contribute.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and that the government is receiving fair value. Transparency in the justification for non-competition is essential.
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 inflate costs
- No indication of small business involvement
- Broad 'Other Aircraft Parts' category lacks specificity
- Potential for taxpayer overpayment
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 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 $23.5 million.
What is the period of performance?
Start: 2025-07-24. End: 2027-07-23.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure cost reasonableness?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's difficult to assess the necessity of bypassing competition. Robust oversight mechanisms, including detailed cost audits and regular performance reviews, are crucial to mitigate the risks associated with non-competitive contracts and ensure taxpayer funds are used efficiently.
How will the Department of Defense ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs for these aircraft parts?
The Department of Defense can mitigate risks associated with Cost Plus Fixed Fee contracts by implementing stringent cost controls, requiring detailed justifications for all expenditures, and conducting thorough audits. Establishing clear performance metrics and milestones, along with regular progress reviews, can also help ensure that the contractor remains focused on efficiency and cost-effectiveness throughout the contract duration.
What is the potential impact on future procurement strategies if sole-source awards become more common for 'Other Aircraft Parts'?
An increase in sole-source awards for 'Other Aircraft Parts' could stifle innovation and competition within the defense industrial base. It may lead to higher prices for essential components and reduce the incentive for contractors to develop cost-saving measures. This could also limit opportunities for emerging small businesses to enter the market and challenge established players, potentially impacting long-term supply chain resilience and affordability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $30,598,601
Exercised Options: $25,321,931
Current Obligation: $23,512,053
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
Start Date: 2025-07-24
Current End Date: 2027-07-23
Potential End Date: 2027-07-23 00:00:00
Last Modified: 2026-01-07
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