DoD Awards $5.97M to L3Harris for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $5,969,951 ($6.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-01-31

End Date: 2026-01-31

Contract Duration: 365 days

Daily Burn Rate: $16.4K/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 $6.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of nearly $6 million awarded. 2. Sole contractor, L3Harris Technologies, raises competition concerns. 3. Potential for inflated pricing due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $5.97 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these aircraft parts.

Public Impact

Essential aircraft parts will be supplied by L3Harris. The Department of the Air Force relies on this contract for operational readiness. Potential for long-term reliance on a single supplier.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for cost overruns

Positive Signals

Contract supports critical Air Force operations
Clear delivery timeline

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation capabilities, but competitive pricing is vital to ensure efficient use of defense funds.

Small Business Impact

The data indicates no specific set-aside for small businesses on this contract. This suggests that larger, established companies like L3Harris are likely the primary beneficiaries.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and prevent potential waste, fraud, or abuse.

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 limits competition.
Potential for price inflation.
Lack of transparency in vendor selection.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 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 $6.0 million.

What is the period of performance?

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

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's impossible to confirm the specific reason. However, the government should have conducted a price analysis, potentially using historical data or market research, to establish a fair and reasonable price, even without competition.

What are the risks associated with relying on a single supplier for critical aircraft parts over the contract duration?

The primary risks include supply chain disruptions if the sole supplier faces issues, potential price increases in future contracts due to established dependency, and a lack of innovation or improved offerings that competition might drive. This can also lead to reduced leverage for the government in negotiations.

How does this spending align with the Air Force's long-term strategy for aircraft parts procurement and supply chain resilience?

This sole-source award may indicate a short-term necessity or a gap in the competitive landscape for these specific parts. Long-term, it raises questions about the Air Force's strategy for fostering competition and ensuring supply chain resilience. Diversifying suppliers or encouraging new entrants could be considered for future procurement.

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: $6,043,420

Exercised Options: $6,043,420

Current Obligation: $5,969,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline