DoD's $20.6M Big Safari contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $20,589,051 ($20.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2027-11-30

Contract Duration: 1,094 days

Daily Burn Rate: $18.8K/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 $20.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Value for money is questionable due to the lack of competition and cost-plus contract type. 2. Competition dynamics are absent, raising concerns about price discovery and potential overspending. 3. Risk indicators include the sole-source award and the cost-plus contract structure, which can incentivize higher costs. 4. Performance context is limited, as details on the specific aircraft parts and their criticality are not provided. 5. Sector positioning is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry, a critical component of defense logistics.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without competitive benchmarks. The 'COST PLUS FIXED FEE' (CPFF) contract type, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed rigorously. The lack of competition means there's no market pressure to ensure the most favorable pricing. Benchmarking against similar sole-source awards for specialized aircraft parts would be necessary for a more precise value assessment, but such data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for excluding other sources. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective solution. Without multiple bids, there's a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher overall expenditure.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, which will receive essential aircraft parts. The services delivered involve the manufacturing and supply of specialized aircraft components under the 'BIG SAFARI' program. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located, but the ultimate impact is on Air Force operations nationwide. Workforce implications include potential job creation or maintenance at L3Harris and its supply chain, supporting the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Cost-plus contract type can lead to cost overruns if not closely monitored.
Lack of transparency in the justification for sole-source award.
Limited insight into the specific nature and criticality of the aircraft parts being procured.
Potential for vendor lock-in due to specialized nature of the parts.

Positive Signals

Award to an established contractor with experience in defense systems.
Contract supports the 'BIG SAFARI' program, indicating a focus on critical modernization efforts.
Long-term contract duration suggests a need for sustained supply of these parts.
Delivery order structure allows for phased procurement and potential flexibility.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a vital segment of the aerospace and defense industry. It encompasses companies that produce a wide range of components, from engine parts to avionics and structural elements. The total market size for defense aerospace manufacturing is substantial, with significant government spending allocated annually. This contract fits within the broader defense procurement landscape, supporting the sustainment and modernization of Air Force aircraft fleets. Comparable spending benchmarks would typically involve analyzing other sole-source or competitively awarded contracts for similar specialized aircraft components.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, L3Harris Technologies Integrated Systems L.P., is a large defense contractor. There is no explicit information provided regarding subcontracting plans to small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular award is likely minimal, though L3Harris may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices within the Air Force. The 'BIG SAFARI' program itself likely has specific oversight mechanisms. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring L3Harris to report costs and progress. Transparency is limited due to the sole-source nature and the lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

BIG SAFARI Program
Aircraft Parts Procurement
Defense Logistics Support
Air Force Sustainment Contracts
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Cost-Plus Contract Type
Potential for Cost Overruns
Limited Transparency
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 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 $20.6 million.

What is the period of performance?

Start: 2024-12-01. End: 2027-11-30.

What is the specific justification for awarding this contract on a sole-source basis to L3Harris Technologies Integrated Systems L.P.?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is 'sole-source'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or when there is a compelling urgency that precludes full and open competition. For this 'BIG SAFARI' contract, the specific justification would likely relate to the unique capabilities, proprietary technology, or specialized nature of the aircraft parts required, making L3Harris the only viable provider. Without access to the Justification for Other Than Full and Open Competition (JOFOC) document, the precise rationale remains undisclosed in the provided data.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other contract types in terms of cost efficiency for specialized aircraft parts?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex projects where the scope is not well-defined, or costs are difficult to estimate accurately. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While it allows for flexibility and encourages innovation, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears most of the cost risk. For specialized aircraft parts, if the design and manufacturing process are well-understood, a fixed-price contract might offer better cost control. However, if the parts involve novel engineering or require extensive R&D, CPFF might be deemed necessary, though it necessitates stringent government oversight to manage costs effectively.

What are the potential risks associated with a sole-source award for critical aircraft components?

Sole-source awards for critical aircraft components present several risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process. Secondly, it can result in a lack of innovation, as the sole provider may have less incentive to improve products or processes. Thirdly, it creates vendor dependency, making the government reliant on a single supplier, which can be problematic if that supplier faces financial difficulties, production issues, or decides to exit the market. Finally, without competitive pressure, the quality of the components might not be as rigorously maintained as it would be under a competitive environment.

What is the significance of the 'BIG SAFARI' program in the context of this contract?

The 'BIG SAFARI' program, which stands for 'Broad Area Ground Support and Aviation Readiness,' is an Air Force initiative focused on rapidly acquiring and fielding capabilities to support aviation readiness and modernization. Contracts under this program are often characterized by urgency and a need for specialized, sometimes unique, solutions. Awarding this contract under 'BIG SAFARI' suggests that the aircraft parts procured are considered critical for maintaining or enhancing the operational readiness or technological edge of Air Force platforms. It implies a strategic focus on addressing specific aviation needs through agile acquisition processes.

How does the contract duration (1094 days) and award amount ($20.6M) compare to typical spending for aircraft parts under similar programs?

The contract duration of approximately three years (1094 days) and an award amount of $20.6 million suggest a significant, long-term procurement of specialized aircraft parts. Without specific benchmarks for the 'BIG SAFARI' program or comparable sole-source awards for aircraft components, it's challenging to definitively state if this is typical. However, for specialized, non-commodity aircraft parts, especially those requiring unique manufacturing processes or integrated systems, such durations and values are not uncommon, particularly when procured through sole-source means due to specific technical requirements. The value per year is roughly $6.9 million, which, depending on the complexity and criticality of the parts, could be within a reasonable range for specialized defense aerospace components.

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: $20,589,051

Exercised Options: $20,589,051

Current Obligation: $20,589,051

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,188,091

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