DoD awards $321M for HALO-S, with L3Harris Technologies securing the sole-source contract
Contract Overview
Contract Amount: $32,106,214 ($32.1M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-28
End Date: 2026-07-26
Contract Duration: 2,677 days
Daily Burn Rate: $12.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HALO-S
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $32.1 million to L3HARRIS TECHNOLOGIES, INC. for work described as: HALO-S Key points: 1. Significant contract value of $321M awarded to L3Harris Technologies. 2. Sole-source award raises questions about competition and potential price inflation. 3. Contract duration extends to July 2026, indicating a long-term need. 4. Focus on 'Other Aircraft Parts' suggests a specialized, potentially high-cost sector.
Value Assessment
Rating: questionable
The contract value of $321M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft parts and auxiliary equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to L3Harris Technologies. This lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition for a $321M contract means taxpayers may be paying a premium, as there was no market pressure to drive down prices.
Public Impact
Special Operations Command relies on L3Harris for critical aircraft components. Long-term contract ensures continued support but limits opportunities for other suppliers. Taxpayers fund a significant sole-source award, raising concerns about value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Specific component for Special Operations Command
- Firm Fixed Price contract type
Sector Analysis
This contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a sector often characterized by specialized, high-value components. Benchmarks are difficult without specific part identification, but significant R&D and manufacturing expertise are typically required.
Small Business Impact
The contract data indicates no specific provisions or set-asides for small businesses. As a sole-source award to a large corporation, it is unlikely that small businesses will directly benefit from this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Transparency regarding the justification for the sole-source award is crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- Long contract duration may not reflect evolving technology.
- No clear small business participation.
- Lack of transparency on justification for sole-source.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to L3HARRIS TECHNOLOGIES, INC.. HALO-S
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $32.1 million.
What is the period of performance?
Start: 2019-03-28. End: 2026-07-26.
What is the specific 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, proprietary technology, or urgent needs that only one vendor can meet. The government should have conducted a price analysis, comparing the proposed price to historical data, commercial prices, or other available benchmarks to ensure reasonableness. Without this information, it's difficult to confirm fair pricing.
What are the potential risks associated with a sole-source contract of this magnitude and duration for specialized aircraft parts?
The primary risks include inflated pricing due to lack of competition, potential for vendor lock-in, and reduced innovation. If L3Harris faces production issues or cost overruns, the government has limited recourse without renegotiation. Furthermore, the long duration could mean the technology becomes outdated, yet the government remains committed to the original terms.
How does this contract contribute to the overall effectiveness and readiness of U.S. Special Operations Command's aviation assets?
This contract likely ensures the continued availability and maintenance of critical aircraft components essential for the unique operational requirements of U.S. Special Operations Command. The long-term nature suggests a strategic investment in maintaining specific platforms, thereby supporting mission readiness. However, the effectiveness is tied to the reliability and performance of the parts provided.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224113R0008
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,106,214
Exercised Options: $32,106,214
Current Obligation: $32,106,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9224114D0006
IDV Type: IDC
Timeline
Start Date: 2019-03-28
Current End Date: 2026-07-26
Potential End Date: 2026-07-26 00:00:00
Last Modified: 2024-09-12
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