L3Harris Technologies awarded $20M for BRU-55A/A aircraft parts, a sole-source contract

Contract Overview

Contract Amount: $20,012,939 ($20.0M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-11-20

End Date: 2017-05-31

Contract Duration: 1,653 days

Daily Burn Rate: $12.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRU-55A/A

Place of Performance

Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: BRU-55A/A Key points: 1. The contract value of $20 million for aircraft parts suggests a significant investment in specialized components. 2. As a sole-source award, the absence of competition may limit price negotiation advantages. 3. The contract duration of over 1600 days indicates a long-term need for these parts. 4. The firm fixed-price structure aims to transfer cost risk to the contractor. 5. The award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, indicating a specific niche. 6. The lack of small business involvement (sb: false) suggests larger prime contractors are likely managing this award.

Value Assessment

Rating: fair

Benchmarking the value of this $20 million contract is challenging without specific details on the BRU-55A/A system and its components. However, the sole-source nature raises concerns about whether the government achieved the best possible price. Comparing it to similar sole-source awards for specialized aircraft parts would be necessary for a more robust value assessment. The firm fixed-price contract type is standard for managing cost certainty, but its effectiveness in ensuring value depends heavily on the initial negotiation and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, L3Harris Technologies, Inc., was solicited. This typically occurs when a unique capability or proprietary technology is required, or when there is insufficient time to conduct a competitive procurement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, the government's leverage to negotiate the lowest possible price is diminished.

Public Impact

The primary beneficiaries are likely the Department of Defense units that utilize aircraft equipped with the BRU-55A/A system. The contract delivers essential aircraft parts, ensuring the operational readiness and maintenance of critical defense assets. The geographic impact is primarily within the United States, supporting defense operations and maintenance facilities. Workforce implications may include specialized manufacturing and technical support roles within L3Harris Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-sourcing could obscure potential alternatives.
Long contract duration without clear performance metrics could mask inefficiencies.
No indication of small business participation, potentially missing opportunities for smaller enterprises.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established contractor (L3Harris Technologies) suggests a degree of reliability.
The specific part (BRU-55A/A) indicates a specialized and potentially critical component for defense aircraft.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for aircraft parts, especially specialized components like the BRU-55A/A, often fall into niche markets. L3Harris Technologies is a major player in this sector, known for its advanced defense technologies. Spending in this area is driven by the need to maintain aging fleets and develop new capabilities, with significant portions often awarded on a sole-source or limited-competition basis due to proprietary technology or specialized manufacturing requirements.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). Given the specialized nature of aircraft parts and the sole-source award to a large prime contractor like L3Harris Technologies, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued under this specific award. This contract may not contribute to the government's small business contracting goals unless L3Harris independently engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a definitive contract, it is subject to standard government oversight procedures. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Component Manufacturing
Defense Procurement
Sole-Source Contracts
Aerospace Parts

Risk Flags

Sole-source award may indicate limited competition and potentially higher costs.
Lack of transparency regarding sole-source justification.
Long contract duration could reduce flexibility.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to L3HARRIS TECHNOLOGIES, INC.. BRU-55A/A

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2012-11-20. End: 2017-05-31.

What is the specific function and criticality of the BRU-55A/A component?

The BRU-55A/A is a bomb rack unit, a critical component used in military aircraft to carry and release ordnance (bombs, missiles, etc.). Its specific function is to provide a secure and reliable mechanism for attaching, controlling, and deploying various types of munitions. The criticality stems from its direct role in the aircraft's offensive capabilities and mission effectiveness. Failures or malfunctions in such a system could prevent weapon release, compromise flight safety, or lead to mission failure. Therefore, ensuring the quality, reliability, and availability of these components is paramount for defense operations.

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

The provided data indicates the contract was 'NOT COMPETED' and is 'sole-source'. While the specific justification is not detailed in the abbreviated data, common reasons for sole-source awards in defense procurement include: 1) Unique or proprietary technology held by a single supplier, making competition impossible. 2) Urgent and compelling need where a competitive process would cause unacceptable delays. 3) Compatibility requirements with existing systems where only one contractor's product can integrate. 4) Follow-on work to a previous contract where the original contractor possesses unique knowledge or tooling. Without further documentation, it's presumed one of these factors, likely related to proprietary technology or specialized manufacturing capabilities of L3Harris Technologies for the BRU-55A/A, necessitated the sole-source award.

How does the firm fixed-price (FFP) contract type mitigate risk for the government?

A Firm Fixed Price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor, L3Harris Technologies in this case, assumes full responsibility for all costs incurred to complete the work. The price is set and not subject to adjustment based on the contractor's actual costs. This structure shifts the risk of cost overruns from the government to the contractor. For the government, this means the total expenditure is known upfront, simplifying budgeting and financial planning. However, the effectiveness of FFP in achieving value depends on the initial price negotiation; if the baseline price is too high, the government still overpays, albeit with predictable spending.

What is L3Harris Technologies' track record with similar defense contracts?

L3Harris Technologies is a major defense contractor with a long history of supplying complex systems and components to the U.S. military and allied nations. They have a significant portfolio of contracts related to aerospace, electronic warfare, communications, and avionics. Their track record generally includes delivering sophisticated products and services across various defense platforms. While specific performance details for every contract are not publicly available, their sustained position as a prime contractor indicates a generally reliable performance history. However, like any large contractor, they may have faced past performance issues or disputes on specific contracts, which would typically be documented in government performance databases.

What are the potential implications of the contract's long duration (1653 days)?

A contract duration of 1653 days (approximately 4.5 years) for aircraft parts suggests a sustained, long-term requirement for the BRU-55A/A components. This could be tied to the lifecycle of specific aircraft platforms that utilize this equipment, indicating a steady demand for maintenance, repair, and overhaul (MRO) activities. For the contractor, it provides a predictable revenue stream. For the government, it ensures a consistent supply of critical parts, potentially avoiding shortages that could ground aircraft. However, such long durations, especially on sole-source awards, can also reduce flexibility to adapt to changing needs or technological advancements and may lock the government into a specific supplier relationship for an extended period.

Are there any comparable spending benchmarks for similar aircraft parts or bomb rack units?

Establishing precise spending benchmarks for highly specialized aircraft components like the BRU-55A/A is difficult without access to detailed technical specifications, quantity requirements, and market analysis data specific to this system. General benchmarks for aircraft parts manufacturing (NAICS 336413) can indicate a wide range of pricing depending on complexity, materials, and production volume. However, bomb rack units are critical, often highly engineered systems. If this were a competed contract, data from similar bids would provide a direct benchmark. Given the sole-source nature, comparisons would likely rely on historical pricing for the BRU-55A/A itself, or potentially pricing for functionally similar, though not identical, bomb rack units on other platforms, adjusted for complexity and performance requirements.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1500 NEW HORIZONS BLVD, AMITYVILLE, NY, 11701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,012,939

Exercised Options: $20,012,939

Current Obligation: $20,012,939

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline