DoD's $371.6M BIG SAFARI contract awarded to L3Harris for Engineering Services shows questionable value and limited competition

Contract Overview

Contract Amount: $371,560,874 ($371.6M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-11-30

End Date: 2020-12-31

Contract Duration: 762 days

Daily Burn Rate: $487.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $371.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $371.6 million over two years raises questions about cost-effectiveness. 2. Sole-source award to L3Harris limits competitive pricing and innovation. 3. The 'NOT COMPETED' status indicates a lack of market research and potential for overpayment. 4. Engineering Services sector contracts often have complex requirements, but transparency is crucial.

Value Assessment

Rating: questionable

The contract's large value without clear justification or competitive benchmarking makes its pricing assessment difficult. The Cost Plus Fixed Fee structure can incentivize cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competitive bidding. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Limited visibility into the specific services provided under BIG SAFARI. Potential for reduced innovation and technological advancement without market competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for cost overruns (CPFF)

Positive Signals

Contract awarded to a known entity (L3Harris)

Sector Analysis

This contract falls within Engineering Services, a sector often characterized by specialized expertise and complex project management. Benchmarks for similar large-scale engineering services contracts are highly variable and depend on specific technical requirements.

Small Business Impact

The data indicates no specific provisions or set-asides for small businesses in this sole-source award, suggesting limited opportunities for SMB participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency
Risk of contractor inefficiency
Questionable value for taxpayer money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $371.6 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P.. BIG SAFARI

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 $371.6 million.

What is the period of performance?

Start: 2018-11-30. End: 2020-12-31.

What specific justification was provided for the sole-source award of the BIG SAFARI contract, and was a thorough market analysis conducted to confirm no other vendors could meet the requirements?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of competition. Without access to the specific justification document, it's impossible to confirm the rationale. However, a thorough market analysis is crucial to ensure the government explored all viable options and obtained the best possible value, especially for a contract of this magnitude.

How effectively was the Cost Plus Fixed Fee (CPFF) pricing structure managed to control costs and prevent contractor inefficiencies, given the absence of competition?

Managing a CPFF contract without competition requires rigorous oversight. The government must actively monitor costs, scrutinize expenditures, and ensure the contractor demonstrates efficiency. Without competitive pressure, there's an inherent risk of cost escalation. Detailed performance metrics and regular audits are essential to mitigate these risks and ensure taxpayer funds are used judiciously.

What are the measurable outcomes and effectiveness of the engineering services provided under the BIG SAFARI contract, and how do they align with the Department of the Air Force's strategic objectives

Assessing the effectiveness requires access to performance reports and mission outcomes tied to the BIG SAFARI contract. The 'Engineering Services' category is broad, encompassing design, development, and technical support. Without specific details on the services rendered and their impact on Air Force operations or technological advancements, it's difficult to quantify their effectiveness or strategic alignment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: L3harris Technologies, Inc

Address: 1655 SCIENCE PL, ROCKWALL, TX, 75032

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $560,391,440

Exercised Options: $382,680,897

Current Obligation: $371,560,874

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $17,213,426

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862019G4006

IDV Type: BOA

Timeline