Navy awards $40.2M for P-8A aircraft bomb racks, with L3Harris Technologies as sole provider
Contract Overview
Contract Amount: $40,204,290 ($40.2M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-03-30
End Date: 2026-12-31
Contract Duration: 2,467 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 35 P-8A BOMB RACK UNITS(BRU) 75A AND 76A (13 UNITED STATES NAVY (USN), 7 UNITED KINGDOM (UK), 5 NORWAY, 4 NEW ZEALAND (NZ) AND 6 REPUBLIC OF KOREA (ROK)
Place of Performance
Location: AMITYVILLE, SUFFOLK County, NEW YORK, 11701
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $40.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: 35 P-8A BOMB RACK UNITS(BRU) 75A AND 76A (13 UNITED STATES NAVY (USN), 7 UNITED KINGDOM (UK), 5 NORWAY, 4 NEW ZEALAND (NZ) AND 6 REPUBLIC OF KOREA (ROK) Key points: 1. Contract awarded to L3Harris Technologies, Inc. for 35 P-8A Bomb Rack Units (BRU) 75A and 76A. 2. The contract includes units for the United States Navy, United Kingdom, Norway, New Zealand, and the Republic of Korea. 3. This is a sole-source award, indicating limited competition for these specific aircraft parts. 4. The contract duration spans from March 30, 2020, to December 31, 2026. 5. The total award value is $40,204,290. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: fair
The total award of $40.2 million for 35 bomb rack units appears to be a significant investment. Without specific per-unit cost breakdowns or comparable contract data for similar specialized aircraft components, a precise value-for-money assessment is challenging. However, the sole-source nature of the award suggests potential for higher pricing than in a competitive environment. Benchmarking against industry standards for aerospace components of this complexity would be necessary for a more definitive valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning L3Harris Technologies, Inc. was the only bidder considered. This typically occurs when a specific item is proprietary, only available from one source, or when there's a compelling justification for avoiding full and open competition. The lack of competition limits price discovery and may result in less favorable pricing for the government compared to a multi-bidder scenario.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government's ability to negotiate the best possible price is diminished when only one supplier is available.
Public Impact
The primary beneficiaries are the United States Navy and allied nations (UK, Norway, New Zealand, Republic of Korea) operating the P-8A Poseidon aircraft. The contract delivers critical components (bomb rack units) essential for the mission capabilities of the P-8A, including anti-submarine warfare and maritime surveillance. The geographic impact is global, supporting the operational readiness of P-8A fleets across multiple allied air forces. Workforce implications are primarily within L3Harris Technologies, Inc., likely supporting manufacturing and engineering roles in New York, where the contractor is based.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
- Lack of transparency in the procurement process due to non-competitive nature.
- Dependence on a single supplier for critical aircraft components could pose supply chain risks.
Positive Signals
- Ensures supply of critical components for P-8A aircraft operated by the US and allies.
- Firm Fixed Price contract shifts cost overrun risk to the contractor.
- Long-term contract provides stability for production and delivery.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. This is a specialized niche within the broader aerospace industry, characterized by high technical requirements and often long production lead times. The P-8A Poseidon is a significant platform for maritime patrol and anti-submarine warfare, and components like bomb rack units are crucial for its operational effectiveness. Spending in this sector is often driven by defense modernization programs and international military sales.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. Given the specialized nature of the components and the sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless L3Harris Technologies, Inc. actively engages small businesses for subcontracting roles not detailed in this award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Department of the Navy's contracting and program management offices. As a definitive contract with a fixed price, financial oversight would focus on ensuring delivery according to specifications and payment terms. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- P-8A Poseidon Aircraft Program
- Naval Aviation Parts and Components
- Defense Logistics Agency (DLA) Aviation
Risk Flags
- Sole-source procurement
- Potential for cost overruns
- Supply chain dependency
Tags
defense, department-of-defense, department-of-the-navy, p-8a-poseidon, aircraft-parts, bomb-rack-units, sole-source, firm-fixed-price, l3harris-technologies, new-york, international-cooperation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.2 million to L3HARRIS TECHNOLOGIES, INC.. 35 P-8A BOMB RACK UNITS(BRU) 75A AND 76A (13 UNITED STATES NAVY (USN), 7 UNITED KINGDOM (UK), 5 NORWAY, 4 NEW ZEALAND (NZ) AND 6 REPUBLIC OF KOREA (ROK)
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $40.2 million.
What is the period of performance?
Start: 2020-03-30. End: 2026-12-31.
What is the historical spending pattern for P-8A Bomb Rack Units (BRU) 75A and 76A with L3Harris Technologies, Inc.?
Historical spending data for this specific contract indicates a total award value of $40,204,290, with a duration from March 30, 2020, to December 31, 2026. As this is a sole-source award, it suggests that previous procurements of these specific units may have also been with L3Harris Technologies, Inc., or that this is an initial, long-term award for a newly developed or specialized component. Without access to prior contract awards for these exact BRU models, it's difficult to establish a multi-year spending trend. However, the current award covers a significant period, implying a consistent need for these parts throughout the P-8A's operational life.
How does the per-unit cost of these bomb rack units compare to similar components in the defense aerospace market?
A precise per-unit cost comparison is challenging without a detailed breakdown of the $40.2 million award across the 35 units and without access to proprietary pricing information from L3Harris Technologies, Inc. However, given that this is a sole-source award for specialized military aircraft components, the per-unit cost is likely higher than if the contract had been competitively bid. Industry benchmarks for complex aerospace parts can vary widely, but specialized components for platforms like the P-8A, which are critical for mission success and require stringent quality control, often command premium pricing. Further analysis would require benchmarking against other sole-source awards for similar complexity or against L3Harris's own pricing for comparable items if available.
What are the primary risks associated with this sole-source contract for P-8A bomb rack units?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. The government has limited leverage to negotiate lower costs when only one supplier is available. Another significant risk is supply chain dependency; if L3Harris Technologies, Inc. experiences production issues, delays, or financial instability, it could disrupt the availability of these critical components for the P-8A fleet, impacting operational readiness for the U.S. Navy and allied nations. Furthermore, the absence of competitive pressure might reduce the incentive for the contractor to innovate or improve efficiency over the contract's lifespan.
What is the expected effectiveness of these bomb rack units in supporting P-8A mission capabilities?
The bomb rack units (BRU 75A and 76A) are essential hardware for the P-8A Poseidon's offensive and defensive capabilities. They are designed to carry and release various ordnance, including torpedoes, depth charges, and missiles, which are critical for the aircraft's primary roles in anti-submarine warfare (ASW), anti-surface warfare (ASUW), and intelligence, surveillance, and reconnaissance (ISR). The effectiveness of these units is directly tied to their reliability, payload capacity, and compatibility with the P-8A's weapon systems. Ensuring a steady supply of these units, as this contract aims to do, is crucial for maintaining the P-8A's combat readiness and its ability to perform its diverse mission set effectively across global operations.
How does this contract align with the overall spending on the P-8A Poseidon program?
This $40.2 million contract for bomb rack units represents a component of the broader P-8A Poseidon program's lifecycle costs. The P-8A is a high-value, technologically advanced platform, and its overall sustainment and operational costs encompass numerous elements, including airframe manufacturing, avionics, engines, training, maintenance, and mission systems. While $40.2 million is a substantial sum for specific components, it should be viewed in the context of the total program expenditure, which runs into billions of dollars over the aircraft's service life. This contract ensures the availability of a critical sub-system, contributing to the overall mission capability and longevity of the P-8A fleet.
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
Solicitation ID: N0001917R0096
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
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: $42,727,611
Exercised Options: $40,204,290
Current Obligation: $40,204,290
Subaward Activity
Number of Subawards: 93
Total Subaward Amount: $15,680,267
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-06
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