DoD's $271M Project Liberty CLS V Contract Awarded to L3Harris Without Competition

Contract Overview

Contract Amount: $271,110,680 ($271.1M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2012-12-14

End Date: 2014-09-30

Contract Duration: 655 days

Daily Burn Rate: $413.9K/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 V

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $271.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: ACAT III BIG SAFARI; PROJECT LIBERTY CLS V Key points: 1. Significant contract value of $271.1 million awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', suggesting a specialized need. 4. Awarded by the Department of the Air Force, indicating a defense-related procurement.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar sole-source contracts in the defense sector is necessary to evaluate value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for the goods or services procured under this contract.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Limited visibility into the specific aircraft parts and auxiliary equipment being procured. Potential for reduced technological advancement if alternative solutions were not explored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost Plus Fixed Fee contract type
No small business participation indicated

Positive Signals

Awarded to a known defense contractor
Specific project name suggests a defined need

Sector Analysis

This procurement falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Defense spending in this area is substantial, but competitive bidding is crucial for ensuring cost-effectiveness.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the award was made to L3Harris Technologies. Future procurements should explore opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and adhering to the contract terms. Audits of costs may be appropriate.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on pricing
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $271.1 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. ACAT III BIG SAFARI; PROJECT LIBERTY CLS V

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 $271.1 million.

What is the period of performance?

Start: 2012-12-14. End: 2014-09-30.

What specific justifications were provided for awarding this contract on a sole-source basis, and were alternatives thoroughly explored?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation outlining the necessity for a specific vendor, such as unique capabilities or urgent requirements. Without this information, it's difficult to assess if taxpayer funds were used efficiently or if a more competitive approach could have yielded better results or lower costs.

How does the Cost Plus Fixed Fee (CPFF) structure, in conjunction with the sole-source award, impact the government's ability to control costs and ensure fair pricing?

A CPFF contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. When combined with a sole-source award, this structure can reduce the contractor's incentive to control costs, as the government bears the risk of cost overruns. The fixed fee provides some predictability, but the overall cost is less certain than in a fixed-price contract, especially without competitive pressure to drive down expenses.

What is the strategic importance of Project Liberty CLS V, and how does this procurement align with the Department of the Air Force's broader mission objectives?

Understanding the strategic importance of Project Liberty CLS V is key to evaluating the necessity and value of this significant expenditure. If the project supports a critical operational capability or addresses a unique technological gap, the sole-source award might be more justifiable. However, without clear articulation of its alignment with Air Force objectives, the $271 million investment raises questions about resource allocation and potential alternative, more cost-effective solutions.

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: $271,110,680

Exercised Options: $271,110,680

Current Obligation: $271,110,680

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862011G4025

IDV Type: BOA

Timeline