DoD awards L3Harris $17.7M for Special Operations Command aircraft parts, a sole-source contract
Contract Overview
Contract Amount: $17,729,035 ($17.7M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-02-01
End Date: 2026-01-31
Contract Duration: 364 days
Daily Burn Rate: $48.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROGRAM MANAGEMENT & ENGINEERING SUPPORT
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $17.7 million to L3HARRIS TECHNOLOGIES, INC. for work described as: PROGRAM MANAGEMENT & ENGINEERING SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 364 days suggests a short-term or bridge requirement. 3. Firm Fixed Price contract type shifts cost risk to the contractor. 4. Delivery Order under an existing contract, indicating potential for follow-on work. 5. Special Operations Command reliance on specific parts highlights critical mission needs. 6. No small business set-aside indicates a focus on large prime contractors.
Value Assessment
Rating: fair
The contract value of $17.7 million for a one-year period for aircraft parts and auxiliary equipment manufacturing appears to be within a reasonable range for specialized defense components. However, without specific details on the parts or services provided, a direct comparison to similar contracts is challenging. The firm fixed price structure is standard for this type of procurement, but the lack of competition means that the government may not have achieved the lowest possible price.
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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that the government did not benefit from a competitive bidding process, which could have led to lower prices or more innovative solutions from a wider pool of suppliers.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to ensure it is receiving the best value for its investment.
Public Impact
U.S. Special Operations Command personnel and missions benefit from the availability of critical aircraft parts. Ensures operational readiness and effectiveness of special operations aviation assets. Supports specialized aircraft maintenance and repair operations. Potential indirect impact on the aerospace manufacturing workforce involved in producing these parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Lack of transparency in the justification for sole-source award.
- Potential for vendor lock-in if these parts are highly specialized.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Delivery Order under an existing contract may indicate a streamlined process.
- Supports critical mission requirements for U.S. Special Operations Command.
Sector Analysis
The aerospace parts manufacturing sector is a critical component of the defense industrial base, providing essential components for military aircraft. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category. The market for specialized defense components is often characterized by high barriers to entry, proprietary technologies, and a limited number of qualified suppliers, which can lead to sole-source procurements. Spending in this sector is driven by defense modernization, operational readiness, and sustainment requirements.
Small Business Impact
The contract was not competed and there is no indication of a small business set-aside. This suggests that the prime contractor, L3Harris Technologies, Inc., is a large business. There is no information provided on subcontracting plans for small businesses. This award does not appear to directly benefit the small business ecosystem through set-asides, though L3Harris may engage small businesses as subcontractors.
Oversight & Accountability
As a Delivery Order under an existing contract, oversight mechanisms would likely be tied to the parent contract's terms and conditions. The firm fixed price contract type provides some cost control. Transparency regarding the justification for the sole-source award would be crucial for assessing accountability. The Department of Defense's Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Special Operations Forces Support Contracts
- Aircraft Component Procurement
- Defense Logistics Agency (DLA) Aviation
- Naval Air Systems Command (NAVAIR) Contracts
Risk Flags
- Sole-source award may lead to higher costs.
- Lack of competition limits price discovery.
- Critical parts procurement requires careful oversight.
Tags
defense, department-of-defense, u-s-special-operations-command, l3harris-technologies, aircraft-parts, sole-source, firm-fixed-price, delivery-order, other-aircraft-parts-and-auxiliary-equipment-manufacturing, new-jersey, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to L3HARRIS TECHNOLOGIES, INC.. PROGRAM MANAGEMENT & ENGINEERING SUPPORT
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 $17.7 million.
What is the period of performance?
Start: 2025-02-01. End: 2026-01-31.
What specific aircraft parts or auxiliary equipment are being procured under this contract?
The provided data indicates the contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) for the U.S. Special Operations Command. However, the specific nature of these parts is not detailed. This could range from complex engine components, avionics, structural elements, or specialized support equipment. Understanding the exact nature of the parts is crucial for assessing their criticality, uniqueness, and the justification for a sole-source award. Without this information, it's difficult to benchmark pricing or evaluate the necessity of a single supplier.
What is the justification for awarding this contract on a sole-source basis?
The data explicitly states the contract was 'NOT COMPETED' (CT: NOT COMPETED), indicating a sole-source award. Federal procurement regulations typically require competition unless specific exceptions apply, such as the availability of only one responsible source, urgent and compelling needs, or specific national security justifications. For a sole-source award of this magnitude ($17.7 million), the Department of Defense would need to have documented and justified why competition was not feasible or practicable. This justification is critical for ensuring taxpayer funds are used efficiently and that the government has explored all viable options.
How does the $17.7 million value compare to historical spending for similar aircraft parts by SOCOM or other DoD entities?
Benchmarking the $17.7 million value requires detailed knowledge of the specific parts being procured and their market rates. As a sole-source award, direct price comparisons are inherently difficult. However, one could analyze historical spending by U.S. Special Operations Command (SOCOM) or other Department of Defense (DoD) entities on similar categories of aircraft parts (e.g., under NAICS 336413) over comparable timeframes. If this contract represents a significant increase or decrease compared to past expenditures for similar items, it could indicate potential issues with pricing or a change in operational tempo. Without more granular data on the items, a precise comparison is speculative.
What is L3Harris Technologies, Inc.'s track record with the Department of Defense, particularly with U.S. Special Operations Command?
L3Harris Technologies, Inc. is a major defense contractor with a substantial history of providing goods and services to the Department of Defense (DoD) and its various components, including U.S. Special Operations Command (SOCOM). They are known for their expertise in areas such as aerospace, communications, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR). Their track record typically involves numerous contracts, ranging from small to very large, across different platforms and mission sets. Analyzing their performance history with SOCOM, including past contract awards, delivery performance, and any reported issues or accolades, would provide context for this specific award.
What are the potential risks associated with a sole-source award for critical aircraft parts?
The primary risk of a sole-source award for critical aircraft parts is the potential for inflated pricing due to the absence of competitive bidding. This can lead to reduced value for taxpayer money. Another risk is vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Furthermore, without competition, there might be less incentive for the sole provider to innovate or improve efficiency. Ensuring robust oversight and negotiation is paramount to mitigate these risks.
What is the expected impact of this contract on the operational readiness of U.S. Special Operations Command's aviation assets?
This contract is intended to directly support the operational readiness of U.S. Special Operations Command's aviation assets by ensuring the availability of necessary parts. Aircraft require regular maintenance, repair, and component replacement to remain flight-worthy and mission-capable. By securing these parts, SOCOM can sustain its specialized aircraft fleet, which is crucial for executing complex and often high-stakes missions. The timely delivery of these components, as facilitated by this contract, is vital to minimizing aircraft downtime and maintaining the required operational tempo for special operations forces.
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: H9224117R0013
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: $17,729,035
Exercised Options: $17,729,035
Current Obligation: $17,729,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9224120D0001
IDV Type: IDC
Timeline
Start Date: 2025-02-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-01-05
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)