DoD's $293M Project Liberty Contract Awarded to L3Harris Technologies for Aircraft Parts
Contract Overview
Contract Amount: $293,088,483 ($293.1M)
Contractor: L3harris Technologies Integrated Systems L.P.
Awarding Agency: Department of Defense
Start Date: 2011-12-13
End Date: 2012-12-14
Contract Duration: 367 days
Daily Burn Rate: $798.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ACAT III BIG SAFARI - PROJECT LIBERTY CLS IV
Place of Performance
Location: GREENVILLE, HUNT County, TEXAS, 75402
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $293.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI - PROJECT LIBERTY CLS IV Key points: 1. Significant contract value of $293M for aircraft parts. 2. L3Harris Technologies is the sole awardee, raising competition concerns. 3. The contract is classified under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 4. Awarded by the Department of the Air Force, indicating a defense sector focus.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The benchmark for similar contracts is not readily available, making a precise pricing assessment difficult without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The specific use of these aircraft parts for Project Liberty is not detailed, limiting public understanding of the program's objectives. Dependence on a single contractor for critical aircraft components could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on project specifics
Positive Signals
- Awarded to a known defense contractor
- Contract duration aligns with project needs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending benchmarks in this area can vary widely based on the complexity and quantity of parts required.
Small Business Impact
The awardee, L3Harris Technologies, is a large corporation, and there is no indication that small businesses were involved in this specific contract as subcontractors or partners.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited initial oversight on the procurement process itself. Further oversight would be needed to ensure cost control and performance throughout the contract's life.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Risk of cost overruns with Cost Plus Fixed Fee structure.
- Lack of transparency regarding the necessity of a sole-source procurement.
- Limited visibility into the specific application and impact of the awarded parts.
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 $293.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI - PROJECT LIBERTY CLS IV
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 $293.1 million.
What is the period of performance?
Start: 2011-12-13. End: 2012-12-14.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear why competition was bypassed for this $293M contract, potentially impacting the government's ability to secure the best value.
What are the specific risks associated with a Cost Plus Fixed Fee contract for aircraft parts?
Cost Plus Fixed Fee contracts carry risks of cost overruns if the contractor's costs exceed projections, as the government absorbs these increases. For aircraft parts, this could be exacerbated by supply chain disruptions or unforeseen technical challenges, potentially leading to budget challenges.
How does this contract contribute to the overall effectiveness of Project Liberty?
The effectiveness of this contract hinges on the timely delivery of high-quality aircraft parts that meet Project Liberty's specifications. While the contract value is substantial, its direct contribution to the project's success is difficult to assess without understanding the specific role of these parts and the project's objectives.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3 Technologies, Inc. (UEI: 008898884)
Address: 10001 JACK FINNEY BLVD, GREENVILLE, TX, 75402
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $293,088,483
Exercised Options: $293,088,483
Current Obligation: $293,088,483
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $56,336,971
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862011G4025
IDV Type: BOA
Timeline
Start Date: 2011-12-13
Current End Date: 2012-12-14
Potential End Date: 2012-12-14 00:00:00
Last Modified: 2018-11-02
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