DoD's $171.8M Big Safari contract awarded to L3Harris for aircraft parts, raising value concerns

Contract Overview

Contract Amount: $17,185,132 ($17.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-04-30

Contract Duration: 484 days

Daily Burn Rate: $35.5K/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 $17.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 484 days suggests a need for ongoing support or specialized services. 3. L3Harris, a major defense contractor, is well-positioned to fulfill this requirement. 4. The specific nature of 'Other Aircraft Parts' indicates a specialized niche within the aerospace sector. 5. Lack of competition is a key risk indicator for potential overspending. 6. The contract's value is significant, warranting close scrutiny of its necessity and pricing.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The $171.8 million award for aircraft parts and auxiliary equipment over approximately 16 months suggests a substantial per-unit cost or a large quantity of items. Comparisons to similar sole-source contracts in the aerospace sector are challenging due to the proprietary nature of specialized parts, but the absence of competition inherently raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement, or for reasons of urgency or national security. The lack of multiple bidders means that L3Harris Technologies Integrated Systems L.P. was the sole provider considered, preventing the government from leveraging market competition to drive down prices and ensure optimal value.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing offers, there is less assurance that the price reflects fair market value.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially specific aircraft programs requiring specialized parts. Services delivered include the provision of 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' crucial for maintaining operational readiness. The geographic impact is centered in Texas, where L3Harris's facility is located, potentially supporting local employment. Workforce implications include the utilization of skilled labor within L3Harris for manufacturing and logistics related to these aircraft components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price scrutiny.
Potential for cost overruns due to lack of market pressure.
Dependence on a single contractor for critical aircraft components.

Positive Signals

L3Harris is an established defense contractor with proven capabilities.
The contract supports critical Department of Defense aviation needs.
Fixed-price contract type can provide some cost certainty if well-defined.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Contracts for aircraft parts and auxiliary equipment are vital for maintaining the operational readiness of military fleets. L3Harris Technologies operates within this specialized segment, often dealing with proprietary technologies and complex supply chains. Benchmarking spending in this area is difficult without specific part details, but the overall defense aerospace market is substantial, with billions allocated annually for aircraft sustainment and upgrades.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a large sole-source award to a major defense contractor, it is unlikely to directly benefit small businesses through set-aside provisions. However, L3Harris may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature, there may be increased emphasis on performance monitoring and ensuring adherence to the firm-fixed-price terms. Inspector General investigations could be initiated if allegations of fraud, waste, or abuse arise. Transparency is limited due to the non-competitive award, making public scrutiny of the value proposition more challenging.

Related Government Programs

Aircraft Sustainment Programs
Aerospace Manufacturing Contracts
Defense Logistics Support
Big Safari Program Components

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 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 $17.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-04-30.

What is L3Harris Technologies' track record with the Department of Defense, particularly on sole-source contracts?

L3Harris Technologies Integrated Systems L.P. is a significant defense contractor with a long history of providing a wide range of products and services to the Department of Defense. They frequently receive large contracts, including sole-source awards, for specialized systems and components. Their track record generally indicates a capacity to meet complex technical requirements. However, the specifics of their performance on past sole-source contracts, particularly regarding cost control and value delivery, would require a deeper dive into contract performance reports and historical spending data. Without that granular detail, it's difficult to definitively assess their performance in this specific context beyond their established market presence.

How does the $171.8 million value compare to similar sole-source awards for aircraft parts?

Comparing the $171.8 million value of this sole-source contract for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' to similar awards is challenging without knowing the exact nature of the parts and their complexity. Sole-source contracts inherently lack direct price comparison points from competing bids. However, this value is substantial and falls within the range of significant sustainment and upgrade contracts awarded to major defense primes. To assess value, one would typically look at historical pricing for similar components if available, the criticality of the parts, and the contractor's overhead and profit margins, which are often less transparent in non-competitive scenarios. The duration of the contract (484 days) also suggests a significant scope of work or a substantial quantity of items.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($171.8 million) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the pricing structure. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or increasing long-term costs. Furthermore, without competition, there's a diminished opportunity to discover alternative, potentially more cost-effective solutions or suppliers. The government must rely heavily on its own cost estimation capabilities and negotiation skills to mitigate these risks.

How effective are the 'Big Safari' program's oversight mechanisms for non-competed contracts?

The 'Big Safari' program, managed by the Air Force, is designed to rapidly develop and field specialized intelligence, surveillance, and reconnaissance (ISR) capabilities. While it often involves innovative approaches and can utilize non-competitive awards for speed and access to unique technologies, its oversight mechanisms are crucial. For non-competed contracts within 'Big Safari,' oversight typically involves rigorous technical reviews, milestone tracking, and cost monitoring by program managers and technical experts. The effectiveness hinges on the program office's ability to independently validate technical requirements, assess contractor performance, and scrutinize costs. Transparency can be a challenge, but internal controls and DoD directives aim to ensure that sole-source awards are justified and provide fair value, though external auditing and public scrutiny are often more limited compared to competed contracts.

What are the historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense?

Historical spending patterns for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' by the Department of Defense are substantial, reflecting the continuous need to maintain and upgrade a vast and complex aircraft fleet. This category encompasses a wide array of components, from simple hardware to highly specialized electronic or structural parts. Annual spending often runs into billions of dollars across all branches of the military. The 'Big Safari' program, specifically, focuses on rapid acquisition of unique capabilities, which can lead to significant, albeit sometimes less predictable, spending on specialized components. Analyzing historical data would reveal trends in specific part types, major platform support, and the prevalence of sole-source versus competitive awards within this broad manufacturing domain.

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: 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: $17,185,132

Exercised Options: $17,185,132

Current Obligation: $17,185,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline