DoD's $38M Big Safari contract awarded to L3Harris for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $38,083,310 ($38.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-09-30

Contract Duration: 698 days

Daily Burn Rate: $54.6K/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 $38.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value appears high relative to the limited scope and duration. 2. Lack of competition suggests potential for inflated pricing and reduced taxpayer value. 3. The sole-source nature of the award warrants scrutiny of the justification and pricing. 4. Performance context is limited due to the 'Other Aircraft Parts' classification. 5. This contract falls within the Defense sector, specifically aircraft manufacturing support. 6. The fixed-price contract type shifts some risk to the contractor, but price reasonableness is key.

Value Assessment

Rating: questionable

Benchmarking this contract is challenging due to the broad 'Other Aircraft Parts' classification and the sole-source award. The $38 million value over approximately two years for a single delivery order suggests a high per-unit cost or significant overhead. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if L3Harris Technologies Integrated Systems L.P. is leveraging its position. Further analysis of the specific parts and services procured is needed to provide a more definitive value assessment.

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 among multiple vendors. The justification for this approach is critical to understanding why other potential suppliers were not considered. Sole-source awards can sometimes be necessary for specialized capabilities or urgent requirements, but they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium, as there was no market pressure to drive down prices. This award highlights the importance of rigorous justification for sole-source procurements to ensure responsible use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, through the acquisition of critical aircraft parts. The services delivered are related to the manufacturing and supply of 'Other Aircraft Parts and Auxiliary Equipment'. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located. Workforce implications may include job creation or maintenance within L3Harris's facilities supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for taxpayers.
Broad 'Other Aircraft Parts' classification makes specific performance and value assessment difficult.
High contract value for a single delivery order warrants scrutiny of cost drivers.
Lack of transparency in the justification for sole-source award.

Positive Signals

L3Harris Technologies is an established defense contractor with a track record.
Firm Fixed Price contract type provides cost certainty for the government.
Contract supports critical Department of Defense aviation needs.

Sector Analysis

The defense industrial base, particularly the segment focused on aircraft parts and manufacturing support, is a significant sector within the U.S. economy. This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' industry code (NAICS 336413). Spending in this area is crucial for maintaining military readiness and technological superiority. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the parts, but the overall defense aerospace market is vast, with billions invested annually in aircraft sustainment and upgrades.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like L3Harris Technologies suggests that the primary focus is on established capabilities rather than fostering small business participation through this specific procurement vehicle. Further investigation into L3Harris's subcontracting plans would be necessary to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The Defense Contract Management Agency (DCMA) may also play a role in monitoring performance and compliance. Transparency is limited by the sole-source nature of the award; however, contract modifications, performance reports, and payment data are typically subject to government record-keeping and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Support
Air Force Sustainment Programs
Special Operations Forces Support
Aerospace Component Supply

Risk Flags

Sole-source award
Lack of competition
Broad service/product description
High contract value for delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-09-30.

What specific aircraft parts or auxiliary equipment are being procured under this $38 million contract?

The provided data classifies this contract under NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' However, it does not specify the exact nature of the parts or equipment. This broad classification makes it difficult to assess the technical requirements, potential obsolescence risks, or the criticality of the items. Understanding the specific components is essential for evaluating the necessity of the expenditure and comparing potential alternatives or pricing structures. Without this detail, the analysis remains at a high level, focusing on the procurement process and overall value rather than the intrinsic worth of the goods themselves.

What was the justification for awarding this contract on a sole-source basis to L3Harris Technologies?

The justification for a sole-source award typically stems from specific circumstances where only one responsible source can provide the required supplies or services. Common reasons include unique technical capabilities, urgent and compelling needs, compatibility with existing systems, or the existence of a long-term, strategic partnership. For this 'BIG SAFARI' contract, the Department of Defense likely cited reasons such as specialized knowledge, proprietary technology, or the need for seamless integration with existing Air Force platforms that only L3Harris could fulfill. A detailed review of the Justification for Other Than Full and Open Competition (JOFOC) document, if publicly available, would provide the precise rationale.

How does the $38 million contract value compare to historical spending on similar 'Other Aircraft Parts' procurements by the Air Force?

Comparing this $38 million contract value to historical spending on similar 'Other Aircraft Parts' procurements requires access to detailed historical contract databases and the ability to filter by specific part types, quantities, and contract types. Given the broad classification and sole-source nature, direct historical comparisons are challenging. However, if this represents a significant increase or decrease compared to previous similar sole-source awards or even competed contracts for comparable components, it could indicate shifts in market prices, technological advancements, or changes in demand. Without granular data on the specific parts procured, a precise historical benchmark is not feasible, but the overall value should be assessed against the duration and scope of the delivery order.

What are the potential risks associated with a sole-source award of this magnitude in the defense sector?

Sole-source awards of this magnitude carry several potential risks for the Department of Defense and taxpayers. The primary risk is the lack of price competition, which can lead to inflated costs and reduced value for money. Without competing bids, the government has less leverage to negotiate favorable pricing. There's also a risk of contractor complacency, as the absence of competitive pressure might reduce incentives for efficiency and innovation. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single supplier, potentially creating supply chain vulnerabilities. Ensuring robust oversight and thorough price analysis becomes even more critical in such scenarios.

What is L3Harris Technologies' track record with the Department of Defense, particularly on 'BIG SAFARI' or similar programs?

L3Harris Technologies is a well-established defense contractor with a significant history of serving the Department of Defense across various platforms and programs. The 'BIG SAFARI' program itself is known for its rapid acquisition of special operations and intelligence support aircraft and systems. L3Harris has a proven track record in areas such as avionics, electronic warfare, communications, and aircraft modification. Their experience likely includes numerous contracts for aircraft parts, sustainment, and upgrades. While specific details of their past performance on 'BIG SAFARI' contracts would require deeper research, their general standing as a major defense supplier suggests they possess the necessary capabilities and experience to execute this type of requirement.

Industry Classification

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

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

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: $38,083,310

Exercised Options: $38,083,310

Current Obligation: $38,083,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline