DoD Awards $328.7M Order to L3Harris for Aircraft Parts, Undermining Competition
Contract Overview
Contract Amount: $328,695,190 ($328.7M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2010-12-14
End Date: 2011-12-30
Contract Duration: 381 days
Daily Burn Rate: $862.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DEFINITIZATION OF ORDER 0002 - ACFT 16-20
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $328.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: DEFINITIZATION OF ORDER 0002 - ACFT 16-20 Key points: 1. Significant award value of $328.7 million for aircraft parts. 2. Sole-source award to L3Harris Technologies raises concerns about competition. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarking, assessing the fairness of the fixed fee and overall cost is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely results in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft components. Limited visibility into the justification for a sole-source award. Potential for reduced innovation due to lack of market competition.
Waste & Efficiency Indicators
Waste Risk Score: 30 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in justification
Positive Signals
- Award to established defense contractor
Sector Analysis
This spending falls within the Defense sector, specifically related to aircraft parts manufacturing. Benchmarks for similar sole-source parts contracts are difficult to establish without competitive data, but typically, competitive procurements yield better pricing.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing this requirement is essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation evident
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $328.7 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. DEFINITIZATION OF ORDER 0002 - ACFT 16-20
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 Air Force).
What is the total obligated amount?
The obligated amount is $328.7 million.
What is the period of performance?
Start: 2010-12-14. End: 2011-12-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without access to the specific justification documentation (e.g., Justification and Approval - J&A), it's impossible to confirm if alternatives were explored. However, sole-source awards inherently bypass competitive processes, potentially leading to higher costs and reduced market engagement.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs on this sole-source contract?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate significantly based on actual expenses. In a sole-source scenario, the government lacks a competitive baseline to ensure the fixed fee and estimated costs are reasonable, increasing the risk of cost overruns and reduced cost efficiency.
What is the long-term strategic impact of awarding significant contracts like this without competition on the broader defense industrial base?
Consistently awarding contracts on a sole-source basis can stifle innovation and competition within the defense industrial base. It may lead to vendor lock-in, reduce the incentive for cost efficiency, and hinder the growth of emerging or smaller businesses that could offer competitive solutions. This can ultimately impact the overall resilience and technological advancement of the defense supply chain.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 10001 JACK FINNEY BLVD FM, GREENVILLE, TX, 75402
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $328,695,190
Exercised Options: $328,695,190
Current Obligation: $328,695,190
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862006G4002
IDV Type: IDC
Timeline
Start Date: 2010-12-14
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2018-03-23
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