L3Harris awarded $45.6M for Outer Wing Kits, a sole-source contract with a 701-point risk score

Contract Overview

Contract Amount: $45,656,535 ($45.7M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2008-08-19

End Date: 2010-06-01

Contract Duration: 651 days

Daily Burn Rate: $70.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OUTER WING KIT

Place of Performance

Location: WACO, MCLENNAN County, TEXAS, 76705, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: OUTER WING KIT Key points: 1. The contract's risk score of 701 suggests significant potential for cost overruns or performance issues. 2. Sole-source procurement limits price discovery and potentially inflates costs compared to competitive bids. 3. The firm fixed-price contract type offers some cost certainty but may not incentivize efficiency. 4. The duration of 651 days for this procurement is substantial, indicating a complex or lengthy requirement. 5. The contract is categorized under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a niche sector. 6. The award to L3Harris Technologies Integrated Systems L.P. represents a significant single-vendor dependency for this item.

Value Assessment

Rating: concerning

The total award of $45.6 million for Outer Wing Kits lacks sufficient comparative data due to its sole-source nature. Without competitive bids, it is difficult to benchmark the pricing against market rates or similar contracts. The absence of competition raises concerns about whether the government secured the best possible value. The risk score of 701 further indicates potential issues with cost or performance that warrant close scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided, but it means there were no opportunities for multiple vendors to bid on the requirement. This lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and potentially the best technical solution.

Taxpayer Impact: Sole-source contracts can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are the Department of the Navy, which receives the critical Outer Wing Kits. These kits are essential components for specific aircraft, ensuring operational readiness and capability. The contract supports manufacturing activities within the aerospace sector, potentially impacting the workforce in Texas. The delivery of these components directly contributes to national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Sole-source award limits price competition and value for money.
High risk score (701) suggests potential for cost overruns or performance issues.
Lack of transparency in the procurement process due to non-competitive nature.
Long contract duration could indicate potential for scope creep or delays.

Positive Signals

Firm fixed-price contract provides some cost certainty for the government.
Award to an established entity, L3Harris Technologies, may indicate existing expertise.
Contract supports critical defense materiel.

Sector Analysis

The aerospace parts manufacturing sector is characterized by high technological barriers to entry and significant regulatory oversight. This contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' a segment that supplies specialized components. The total award of $45.6 million is moderate within the broader defense aerospace industry. Comparable spending benchmarks are difficult to establish due to the sole-source nature of this specific procurement.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award, the focus is likely on fulfilling a specific technical requirement with a particular contractor, rather than on broader economic goals like small business participation. This limits opportunities for small businesses to engage with this specific procurement.

Oversight & Accountability

Oversight mechanisms for this sole-source contract would typically involve contract management by the Department of the Navy, focusing on delivery schedules, quality control, and adherence to the firm fixed-price terms. Accountability rests with L3Harris Technologies to deliver the specified Outer Wing Kits. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Component Manufacturing
Defense Logistics Agency Contracts
Naval Aviation Support Equipment
Sole-Source Defense Procurements

Risk Flags

Sole-source award
High risk score
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. OUTER WING KIT

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 Navy).

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2008-08-19. End: 2010-06-01.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of the 'OUTER WING KIT' contract to L3Harris Technologies Integrated Systems L.P. Typically, sole-source procurements are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs, or specific national security requirements where competition is not feasible or practical. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This lack of transparency is a common concern with sole-source awards, as it limits the public's understanding of why competitive processes were bypassed.

How does the risk score of 701 compare to other sole-source defense contracts?

A risk score of 701 is considered high, indicating significant potential risks associated with the contract, such as cost overruns, schedule delays, or performance deficiencies. While direct comparisons to all sole-source defense contracts are not feasible without access to a comprehensive database of risk scores, a score of this magnitude suggests that this particular contract warrants heightened scrutiny from oversight bodies. High risk scores often stem from factors like contractor performance history, contract complexity, financial stability of the contractor, or the novelty of the requirement. For sole-source contracts, a high risk score is particularly concerning as there are fewer mechanisms (like competitive pressure) to mitigate these risks.

What is the historical spending pattern for 'Outer Wing Kits' or similar components by the Department of the Navy?

The provided data only details a single contract for 'OUTER WING KIT' valued at $45.6 million, awarded in 2008 with an end date in 2010. It does not provide historical spending patterns for this specific item or similar components. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for all contracts related to 'Outer Wing Kits,' related part numbers, or broader categories of aircraft structural components awarded by the Department of the Navy over several fiscal years. This would reveal trends in award values, number of competitors, and pricing over time.

What is L3Harris Technologies Integrated Systems L.P.'s track record with similar sole-source defense contracts?

Assessing L3Harris Technologies Integrated Systems L.P.'s track record with similar sole-source defense contracts requires a detailed review of their contract history within the federal procurement system. This would involve searching databases for other sole-source awards received by the company, particularly for aircraft components or related systems. Key metrics to examine would include the value and duration of those contracts, any reported performance issues or contract modifications, and the justifications provided for sole-source awards. A pattern of frequent sole-source awards or consistent performance issues could indicate a higher risk profile for future contracts.

Are there any publicly available performance reports or audits for this specific contract?

The provided data snippet does not contain information regarding publicly available performance reports or audits for this specific 'OUTER WING KIT' contract (Award ID: DCA). Accessing such documents would typically require searching government audit agency websites (like GAO), Inspector General reports for the Department of Defense, or contract performance databases if they are made public. Often, detailed performance data and audit findings for specific contracts, especially older ones, may not be readily accessible or may be classified due to national security concerns. The high risk score suggests that performance monitoring would have been crucial during its execution.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001908R0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 7500 MAEHR RD, WACO, TX, 76705

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,630,244

Exercised Options: $60,630,244

Current Obligation: $45,656,535

Contract Characteristics

Cost or Pricing Data: NO

Timeline