DoD's $18.4M BIG SAFARI contract to L3Harris for aircraft parts awarded without competition

Contract Overview

Contract Amount: $18,399,911 ($18.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2028-11-30

Contract Duration: 1,064 days

Daily Burn Rate: $17.3K/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 $18.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns. 2. Lack of competition raises concerns about potential overpayment and suboptimal pricing. 3. The contract duration of over 3 years suggests a significant need for these aircraft parts. 4. Awarded to L3Harris Technologies Integrated Systems L.P., a major defense contractor. 5. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating a specialized need. 6. Awarded by the Department of the Air Force, highlighting its importance to air operations.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a definitive value assessment difficult without further data. Benchmarking against similar sole-source contracts for specialized aircraft parts would be necessary to determine if the pricing is reasonable. The absence of competitive bids means there's no market-driven price discovery to ensure optimal value for taxpayer dollars. The fixed fee component provides some cost control, but the overall cost is subject to the actual expenses incurred by the contractor.

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. The lack of competition means there were no other bidders to compare against, and no opportunity for price negotiation based on multiple offers. This can limit the government's ability to secure the best possible price.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding process. This can result in higher prices than might be achieved in a more open market.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and its operational readiness. The services delivered involve the manufacturing and supply of critical aircraft parts. The contract is geographically located in Texas, suggesting a concentration of economic activity and potential job creation in that state. The contract supports the aerospace manufacturing sector, potentially impacting the workforce within that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
The specialized nature of aircraft parts might limit the pool of potential contractors, justifying sole-source awards but requiring careful justification.

Positive Signals

Awarded to a known entity (L3Harris) with existing defense contracting experience.
The contract has a defined end date, providing a clear timeframe for delivery.
The fixed fee component offers some predictability in contractor profit margins.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. This is a highly specialized industry characterized by stringent quality requirements, long development cycles, and significant government investment. The market size for such specialized parts is driven by the operational needs and fleet sizes of military branches. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition contracts for similar high-value, specialized aircraft components within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, L3Harris, may engage small businesses as subcontractors for specific components or services, 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. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, including adherence to the fixed fee, cost reporting, and delivery schedules. Transparency is limited due to the sole-source nature, but contract award details are typically made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Parts Procurement
Aerospace Manufacturing
Department of Defense Supply Chain
Air Force Logistics Command
Specialized Equipment Manufacturing

Risk Flags

Lack of Competition
Cost-Plus Contract Type
Potential for Cost Overruns
Specialized Manufacturing Requirement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 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 $18.4 million.

What is the period of performance?

Start: 2026-01-01. End: 2028-11-30.

What is the historical spending pattern for BIG SAFARI contracts awarded to L3Harris Technologies?

Analyzing historical spending patterns for BIG SAFARI contracts awarded to L3Harris Technologies would provide crucial context for this $18.4 million award. A review of past awards would reveal trends in contract types (e.g., cost-plus, fixed-price), competition levels (sole-source vs. competed), and the average value of contracts. If L3Harris has a history of receiving numerous sole-source awards for similar aircraft parts under the BIG SAFARI program, it might suggest a pattern of specialized capability or a long-standing relationship. Conversely, a history of competitive awards could make this sole-source decision more noteworthy. Understanding the historical performance and pricing of previous BIG SAFARI contracts with L3Harris would help assess whether this current award represents a fair price and good value for the government.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar aircraft parts?

The Cost-Plus-Fixed-Fee (CPFF) contract structure used for this $18.4 million BIG SAFARI award is common in defense procurement, especially for research, development, or complex manufacturing where costs are difficult to estimate precisely upfront. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from Fixed-Price contracts, where the price is set regardless of actual costs, offering more cost certainty to the government but potentially higher initial prices. Cost-Reimbursement contracts (without a fixed fee) offer maximum flexibility but less cost control. For specialized aircraft parts, CPFF is often chosen when the scope of work or material requirements are not fully defined at the outset, or when the contractor possesses unique expertise. However, it places a greater burden on the government to monitor costs to prevent overruns and ensure the fixed fee remains a reasonable profit margin.

What specific aircraft parts or systems does this contract cover under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'?

The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) is broad and encompasses a wide range of components beyond engines or airframes. For this $18.4 million BIG SAFARI contract, it could include items such as landing gear components, avionics hardware, specialized wiring harnesses, environmental control system parts, or even structural elements not classified under primary airframe manufacturing. Without more specific details, it's difficult to pinpoint the exact nature of the parts. Understanding the specific components is crucial for assessing their criticality to aircraft operations, the complexity of their manufacturing, and the availability of alternative suppliers, which would further inform the justification for a sole-source award and the overall value proposition.

What is L3Harris Technologies' track record with sole-source contracts from the Department of the Air Force?

Investigating L3Harris Technologies' track record with sole-source contracts from the Department of the Air Force (DAF) is essential for evaluating this $18.4 million BIG SAFARI award. A review of historical DAF contracts awarded to L3Harris would reveal the frequency and value of sole-source awards compared to competed ones. It would also be important to examine the types of goods and services provided under these sole-source agreements. If L3Harris has a consistent history of receiving sole-source awards for specialized aerospace components from the DAF, it might indicate a recognized expertise or a critical supplier role. However, a high proportion of sole-source awards could also signal potential issues with market competition or a reliance on incumbent contractors, warranting closer scrutiny of the justification for each non-competitive award.

Are there any known risks associated with the supply chain for these specific types of aircraft parts?

Assessing risks associated with the supply chain for the specific aircraft parts covered under this $18.4 million BIG SAFARI contract is critical, especially given its sole-source nature. If these parts are highly specialized, manufactured using rare materials, or produced by a limited number of global suppliers, the supply chain could be inherently vulnerable. Risks might include geopolitical instability affecting material sources, manufacturing disruptions due to unforeseen events (like pandemics or natural disasters), or the obsolescence of certain technologies. The fact that the contract is sole-sourced to L3Harris might imply that they are the only entity capable of producing these specific parts, potentially indicating a concentrated or fragile supply chain. Understanding these risks is vital for the Air Force to ensure sustained operational readiness and to develop contingency plans.

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: 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: $18,399,911

Exercised Options: $18,399,911

Current Obligation: $18,399,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4027

IDV Type: BOA

Timeline