DoD awards $48M contract for aircraft parts, with limited competition and a focus on Texas

Contract Overview

Contract Amount: $48,050,360 ($48.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $132.0K/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, 75403

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $48.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. The contract duration of one year suggests a need for ongoing support. 3. Awarded under Other Aircraft Parts and Auxiliary Equipment Manufacturing, indicating a specialized need. 4. The fixed-price contract type aims to control costs for the government. 5. Geographic focus on Texas may indicate a specific operational base or maintenance facility.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The firm fixed-price structure is a positive indicator for cost control, but the lack of competition means there's no direct market pressure to ensure the lowest possible price. Further analysis would require understanding the specific components or services procured and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The absence of a competitive bidding process limits the government's ability to explore alternative solutions or secure potentially lower prices through market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

The Department of the Air Force benefits from the acquisition of essential aircraft parts. This contract supports the operational readiness and maintenance of Air Force aircraft. The primary geographic impact is in Texas, likely supporting a specific base or maintenance depot. The contract supports the workforce involved in manufacturing or supplying specialized aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards can create vendor lock-in and reduce future flexibility.
Transparency in the justification for a sole-source award is crucial for accountability.

Positive Signals

Firm fixed-price contract type helps to manage cost certainty.
Award to a known entity (L3Harris) may indicate a reliance on established capabilities.
The contract duration is clearly defined, providing a predictable support window.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often characterized by high barriers to entry due to technical expertise, certifications, and established relationships with defense agencies. Spending in this sub-sector is driven by military readiness requirements and the lifecycle management of aircraft fleets.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a large prime contractor like L3Harris Technologies may limit direct opportunities for small businesses unless they are already part of the prime's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability is managed through contract performance monitoring and adherence to the firm fixed-price terms. Transparency is dependent on the public availability of the contract award justification, especially given its sole-source nature.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Component Manufacturing
Defense Logistics Support
Air Force Procurement

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competition.
Need for robust oversight on sole-source contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.1 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 $48.1 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this is not detailed in the data. Typically, sole-source awards are made when only one responsible source is available to meet the government's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling requirements where competition is not feasible, or if the item is a follow-on to a previously competed contract where the original contractor is the only viable option. A full justification would usually be documented by the procuring agency, detailing the reasons why a competitive process was not undertaken.

How does the $48 million award compare to historical spending on similar aircraft parts by the Air Force?

Comparing this $48 million award to historical spending requires access to broader contract databases and specific product/service categories. Without knowing the exact nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured, a direct comparison is difficult. However, the Department of Defense, and specifically the Air Force, consistently spends billions annually on aircraft parts, maintenance, and support. This $48 million award represents a specific procurement action within that larger spending landscape. To assess its relative size, one would need to identify comparable sole-source or competed contracts for similar part types or support services over previous fiscal years.

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

The primary risk associated with a sole-source award for aircraft parts is the potential for inflated pricing due to the lack of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the lowest possible price. Other risks include vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or flexibility. There's also a risk that the sole-source justification might not be as robust as it could be, potentially masking inefficiencies or a lack of proactive market research by the agency. Ensuring rigorous oversight and fair pricing mechanisms becomes critical in sole-source situations.

What is L3Harris Technologies' track record with the Department of Defense, particularly for aircraft parts?

L3Harris Technologies is a major defense contractor with a significant history of providing a wide range of products and services to the Department of Defense, including complex systems, components, and support for various aircraft platforms. Their portfolio often includes avionics, electronic warfare systems, communication systems, and other critical aircraft components. Given their size and scope, they are frequently involved in large-scale contracts. Their track record with the DoD is generally extensive, though like any large contractor, specific contract performance can vary. For this particular contract, their experience in 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' would be relevant.

What does the 'firm fixed price' contract type imply for cost control and risk allocation?

A 'firm fixed price' (FFP) contract type is generally favored by the government for its cost control and risk allocation benefits. Under an FFP contract, the contractor agrees to a total price for the work or product, regardless of the actual costs incurred. This places the primary risk of cost overruns on the contractor. For the government, it provides a high degree of cost certainty, making budgeting more predictable. The contractor is incentivized to manage their costs efficiently to maximize profit. This contract type is suitable when the scope of work is well-defined and the risks are manageable.

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: $48,050,360

Exercised Options: $48,050,360

Current Obligation: $48,050,360

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $25,613,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline