DoD's $7M BIG SAFARI contract awarded to L3Harris for aircraft parts, with no competition

Contract Overview

Contract Amount: $7,000,000 ($7.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2027-10-31

Contract Duration: 668 days

Daily Burn Rate: $10.5K/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 $7.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $7 million appears moderate for specialized aircraft parts, but the lack of competition raises concerns about potential overpayment. 2. Awarded on a sole-source basis, the contract bypasses competitive bidding, potentially limiting price discovery and value for taxpayers. 3. The 'Other Aircraft Parts' NAICS code suggests a broad category, making direct benchmarking difficult without more specific product details. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored, posing a risk to budget adherence. 5. The contract duration of over 1.5 years (668 days) indicates a significant need for these specialized parts. 6. The award to L3Harris Technologies, a major defense contractor, suggests a reliance on established industry players for critical components.

Value Assessment

Rating: questionable

Benchmarking the value of this $7 million contract is challenging without specific details on the aircraft parts being procured. However, the sole-source award mechanism inherently limits the opportunity for price discovery and competitive negotiation, which are crucial for ensuring value for money. CPFF contracts, while sometimes necessary for R&D or uncertain scopes, carry a risk of higher costs compared to fixed-price contracts if cost controls are not robust. Comparing this to similar sole-source awards for specialized aircraft components would be necessary for 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. This typically occurs when only one responsible source can provide the required goods or services, or in cases of urgent need. The lack of competition means there were no other bidders to compare against, and the government did not benefit from the price reductions and innovation that often arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no competitive pressure to drive down costs. This can lead to higher overall spending for the government.

Public Impact

The primary beneficiaries are likely the U.S. Air Force units requiring these specific aircraft parts for operational readiness. The contract delivers essential components for aircraft maintenance and sustainment, ensuring the continued functionality of military aviation assets. The geographic impact is primarily within Texas, where L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. The contract supports specialized manufacturing roles within the aerospace and defense sector, contributing to the existing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
CPFF contract type carries inherent risks of cost overruns if not managed stringently.
The broad NAICS code makes it difficult to assess the specific nature and value of the parts procured.
Sole-source awards can reduce opportunities for smaller businesses to compete for defense contracts.

Positive Signals

Award to a major defense contractor like L3Harris suggests access to specialized capabilities and established supply chains.
The contract supports critical aircraft sustainment, ensuring operational readiness for the Air Force.
The fixed fee component of the CPFF contract provides some level of cost certainty for the contractor's profit.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, stringent quality requirements, and significant government procurement. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category, which is a vital segment supporting the sustainment and modernization of military fleets. The market for such specialized parts is often dominated by a few key suppliers due to the technical expertise and certifications required. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the parts, but the overall defense aerospace manufacturing market is substantial, with billions spent annually on aircraft components and MRO services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award to a large prime contractor like L3Harris suggests that opportunities for small businesses would likely be through subcontracts, if any are planned. The lack of a small business set-aside means that direct opportunities for small businesses to compete for this specific contract were not prioritized.

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 and CPFF structure, rigorous oversight of cost, performance, and schedule will be critical. Transparency may be limited due to the non-competitive award, but contract performance reviews and audits by the Defense Contract Audit Agency (DCAA) would be standard oversight mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

BIG SAFARI Program
Air Force Sustainment Contracts
Aircraft Parts Procurement
Sole-Source Defense Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of specific product details
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 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 $7.0 million.

What is the period of performance?

Start: 2026-01-01. End: 2027-10-31.

What is the specific nature of the 'Other Aircraft Parts' being procured under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 336413, which covers 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' This broad classification suggests the contract could encompass a wide range of components, from structural elements and engine parts to electronic systems and specialized hardware. Without further details from the contract itself (e.g., a Statement of Work or detailed product descriptions), it is impossible to ascertain the exact nature of the parts. This lack of specificity makes it challenging to perform precise value comparisons or risk assessments, as the criticality and cost drivers for different types of aircraft parts can vary significantly.

How does the $7 million contract value compare to similar sole-source awards for aircraft parts?

Directly comparing the $7 million value of this sole-source contract to similar awards is difficult without knowing the specific type of aircraft parts procured. Sole-source awards are often justified by unique requirements, proprietary technology, or urgent needs, which can influence pricing. However, generally, sole-source contracts tend to be more expensive than competitively awarded ones due to the absence of price pressure. To assess value, one would need to identify comparable sole-source contracts for similar complexity and quantity of aircraft parts, factoring in the specific platform and the contractor's historical pricing for such items. The Cost Plus Fixed Fee (CPFF) structure also adds a layer of complexity, as the final cost can fluctuate based on incurred expenses.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for aircraft parts?

The primary risks associated with a sole-source CPFF contract for aircraft parts are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved through bidding. The government relies heavily on negotiation and contractor justification for costs. Secondly, the CPFF structure, while providing a guaranteed profit margin (the fixed fee) to the contractor, can incentivize cost escalation. If not rigorously monitored, the contractor may incur higher costs than necessary, as the government bears the majority of the cost risk. Effective oversight, detailed cost tracking, and strong negotiation skills by the government contracting team are crucial to mitigate these risks and ensure fair pricing and efficient performance.

What is L3Harris Technologies' track record with similar sole-source contracts and aircraft parts for the Department of Defense?

L3Harris Technologies is a major defense contractor with extensive experience in aerospace and defense systems, including aircraft components and sustainment. While specific data on their sole-source CPFF contracts for 'Other Aircraft Parts' is not provided here, their history suggests they possess the technical capabilities and manufacturing capacity required. Analyzing their past performance on similar sole-source awards, particularly with the Department of Defense and the Air Force, would be essential. This would involve reviewing contract histories for cost overruns, performance issues, and overall value delivered. Their established position in the defense industrial base implies a significant volume of work, making it likely they have engaged in numerous sole-source procurements over the years.

How does the duration of this contract (668 days) impact the assessment of its value and risk?

The contract duration of 668 days (approximately 22 months) suggests a sustained need for the specified aircraft parts, likely related to ongoing sustainment, maintenance, or a specific program requirement. A longer duration can sometimes allow for better economies of scale if production volumes increase, potentially lowering per-unit costs over time. However, it also extends the period during which cost risks associated with the CPFF structure are present. For a sole-source award, a longer duration necessitates continuous government oversight to ensure costs remain reasonable and performance stays on track throughout the contract period. It also implies that finding an alternative source or re-competing the requirement may not be feasible in the short to medium term.

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: 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: $144,535,498

Exercised Options: $67,704,852

Current Obligation: $7,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline