DoD's $28.2M contract with L3Harris for aircraft parts lacked competition, raising cost concerns

Contract Overview

Contract Amount: $28,239,483 ($28.2M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2005-02-28

End Date: 2013-06-13

Contract Duration: 3,027 days

Daily Burn Rate: $9.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: Key points: 1. Significant spending on aircraft parts over 8 years. 2. Sole-source award to L3Harris Technologies. 3. Potential for inflated costs due to lack of competition. 4. Contract type (Time and Materials) can increase risk. 5. No small business participation noted.

Value Assessment

Rating: questionable

The $28.2 million awarded over 8 years for 'Other Aircraft Parts' is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts for aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for these aircraft parts.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract (8 years) suggests a sustained need for these parts. Lack of transparency in pricing due to sole-source award. Potential impact on military readiness if parts are critical and overpriced.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials contract type
Lack of small business participation
Long contract duration without re-competition

Positive Signals

Contract awarded to a known entity (L3Harris)
Specific NAICS code indicates a focused procurement

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in defense aerospace components can be significant, but competitive pricing is crucial to manage costs effectively.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and potentially leverage their agility and innovation in specialized manufacturing.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure the pricing was fair and reasonable, and to explore opportunities for future competition.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Time and Materials contract type
No small business participation
Long contract duration without re-competition
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. See the official description on USAspending.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2005-02-28. End: 2013-06-13.

What was the justification for the sole-source award, and were alternatives explored?

The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. However, without further documentation, it's unclear if alternatives were thoroughly explored or if the justification was robust enough to warrant bypassing competition.

How does the Time and Materials pricing compare to fixed-price contracts for similar aircraft parts?

Time and Materials (T&M) contracts generally carry higher risk for the government as costs can escalate. Comparing T&M pricing to fixed-price contracts for similar aircraft parts would likely reveal that T&M is more expensive due to the lack of a cost ceiling and the inclusion of labor hours and material markups, especially over a long duration.

What is the potential cost savings if this contract had been competed?

Estimating potential cost savings from a non-competed contract is challenging without detailed market research. However, competitive bidding typically yields savings of 10-30% or more compared to sole-source awards, especially for established product categories like aircraft parts. This suggests potential savings of several million dollars for taxpayers on this $28.2M contract.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline