DoD's $308M Big Safari contract awarded to L3Harris for engineering services in Texas

Contract Overview

Contract Amount: $308,445,916 ($308.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2018-11-30

End Date: 2020-11-30

Contract Duration: 731 days

Daily Burn Rate: $422.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: ROCKWALL, ROCKWALL County, TEXAS, 75032

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $308.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Contract value exceeds $308 million, indicating a significant investment in specialized engineering capabilities. 2. Awarded to a single, large defense contractor, L3Harris Technologies, suggesting a focus on established expertise. 3. The contract duration of 731 days points to a medium-term project requiring sustained effort. 4. Operating within the Department of the Air Force, this contract likely supports advanced aerospace or defense technologies. 5. The 'NOT COMPETED' status raises questions about the procurement process and potential missed opportunities for broader market engagement. 6. The 'COST PLUS FIXED FEE' pricing structure can incentivize cost overruns if not closely monitored. 7. The contract's geographic focus on Texas aligns with the state's significant defense industry presence.

Value Assessment

Rating: fair

The contract's substantial value of over $308 million for engineering services warrants careful scrutiny. Without specific performance metrics or comparable contract data, it's difficult to definitively benchmark value for money. The 'COST PLUS FIXED FEE' (CPFF) contract type, while common for R&D or uncertain scope work, carries inherent risks of cost escalation. The absence of competition further complicates a direct value assessment, as market-driven pricing pressures were not applied. However, the award to a known entity like L3Harris suggests a degree of confidence in their ability to deliver, though the ultimate value will depend on the successful execution and final cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a higher price than might have been achieved otherwise. The justification for a sole-source award would need to be robust to ensure fair pricing and prevent market distortion.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a bidding process, there's a risk that the awarded price is higher than it would have been if multiple companies had vied for the contract.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other entities within the Department of Defense requiring specialized engineering support. The contract delivers critical engineering services, likely related to advanced technology development, system integration, or sustainment for complex defense platforms. The geographic impact is concentrated in Texas, supporting the state's robust aerospace and defense industrial base and associated workforce. Workforce implications include the potential for high-skilled engineering and technical job creation or sustainment within L3Harris and its subcontractors in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness for taxpayers.
Cost-plus fixed fee contract type can lead to cost overruns if not managed diligently.
Lack of transparency in the sole-source justification could obscure potential conflicts of interest or missed opportunities.
The substantial contract value without clear performance benchmarks makes value-for-money assessment challenging.
Limited public information on the specific services rendered hinders a full understanding of the contract's impact.

Positive Signals

Award to L3Harris Technologies, a known defense contractor, suggests a focus on established capabilities and potentially reduced execution risk.
The contract duration indicates a commitment to a specific project, allowing for focused development and integration.
Geographic concentration in Texas supports a key hub for defense industry activity and skilled labor.
The contract likely addresses critical national security needs within the Air Force's purview.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by continuous technological advancement and the need for sophisticated military platforms. L3Harris Technologies is a major player in this space, offering a wide range of capabilities. This contract's value places it among significant investments in specialized engineering, likely supporting advanced programs that require deep technical expertise and integration capabilities, aligning with the sector's focus on innovation and high-value solutions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, L3Harris Technologies may engage small businesses as subcontractors for specific components or services, depending on the project's needs and their subcontracting plan. The absence of a small business set-aside means that opportunities for small businesses to directly compete for the prime contract were not pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a 'COST PLUS FIXED FEE' contract, rigorous financial oversight and performance monitoring are crucial to manage costs and ensure value. Transparency regarding the justification for the sole-source award and ongoing performance reporting would be key accountability measures. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Big Safari Program
Air Force Research and Development Contracts
Defense Engineering Services
Special Operations Forces Support Contracts
Advanced Technology Development Contracts

Risk Flags

Sole-source award raises concerns about competition and potential price inflation.
Cost-plus fixed fee contract type carries inherent risks of cost overruns.
Lack of detailed public information on specific services limits transparency and accountability.
Potential for missed opportunities to leverage innovation from a broader range of contractors.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $308.4 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 $308.4 million.

What is the period of performance?

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

What specific engineering services are being provided under the "BIG SAFARI" contract?

The "BIG SAFARI" contract, awarded to L3Harris Technologies, falls under NAICS code 541330 (Engineering Services). While the specific details of the services are not publicly disclosed due to the nature of advanced defense programs, the "BIG SAFARI" program itself is known to focus on rapid prototyping, development, and integration of non-traditional intelligence, surveillance, and reconnaissance (ISR) capabilities for the U.S. Air Force. Therefore, the engineering services likely encompass areas such as systems engineering, software development, hardware integration, testing, and sustainment for specialized ISR platforms and technologies. This could involve everything from sensor integration and data processing to platform modifications and operational support, aimed at providing agile and cutting-edge solutions to meet evolving intelligence requirements.

How does the $308 million contract value compare to similar engineering services contracts within the Department of Defense?

The $308 million contract value for engineering services is substantial, placing it in the upper tier of individual contract awards for specialized technical support within the Department of Defense. While the DoD procures billions in engineering services annually across numerous contracts, this specific value suggests a significant, multi-year effort. Comparable contracts often involve large system development, integration, or sustainment for major platforms (e.g., aircraft, satellites, command and control systems). Contracts within the "BIG SAFARI" program, by their nature, tend to be high-value due to the focus on advanced and often classified technologies. Benchmarking requires comparing it to other sole-source or limited-competition awards for similar advanced ISR or specialized engineering capabilities, where values can range from tens to hundreds of millions of dollars over their lifecycle.

What are the primary risks associated with a 'COST PLUS FIXED FEE' contract of this magnitude?

The primary risks associated with a 'COST PLUS FIXED FEE' (CPFF) contract of this magnitude ($308 million) revolve around cost control and contractor incentives. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. The main risk is that the contractor may have less incentive to control costs rigorously, as their profit (the fixed fee) is not directly tied to cost savings. This can lead to cost overruns if the government's oversight and cost-monitoring capabilities are insufficient. Additionally, defining 'allowable costs' can be complex and lead to disputes. For taxpayers, the risk is paying more than necessary if costs escalate beyond initial projections without a corresponding increase in value or performance.

Given the 'NOT COMPETED' status, what is the potential impact on innovation and market access for other firms?

The 'NOT COMPETED' status for this $308 million contract significantly limits the potential impact on broader innovation and market access for other firms. By awarding the contract solely to L3Harris Technologies without a competitive bidding process, the Air Force bypassed the opportunity to solicit innovative solutions from a wider range of companies, including smaller, specialized firms that might offer unique approaches. This can stifle competition, potentially leading to higher prices and slower technological advancement in the long run. Furthermore, it denies other capable contractors the chance to demonstrate their expertise and build a track record with the government, potentially consolidating market power among a few large incumbents and hindering the growth of emerging players in critical defense technology sectors.

What is L3Harris Technologies' track record with similar large-scale engineering or "BIG SAFARI" contracts?

L3Harris Technologies (and its predecessor companies like Harris Corporation and L3 Technologies) has a substantial and long-standing track record of performing large-scale engineering, integration, and technology development contracts for the Department of Defense, including within programs similar to "BIG SAFARI." They are known for their expertise in areas such as electronic warfare, communications, space and airborne systems, and ISR. Their involvement in "BIG SAFARI" is consistent with their strategic focus on providing advanced mission systems and solutions. While specific contract performance details are often sensitive, L3Harris generally possesses the scale, technical capabilities, and security clearances required for such complex, high-value programs. Their history suggests a capacity to manage intricate projects, though like any large contractor, performance can vary across individual contracts.

How does the geographic concentration in Texas influence the contract's execution and economic impact?

The geographic concentration of this contract in Texas (ST: TX) is significant, given Texas's prominent role as a hub for the aerospace and defense industry. This location likely provides access to a skilled workforce, specialized suppliers, and established infrastructure crucial for complex engineering projects. For L3Harris Technologies, operating in Texas may offer logistical advantages and proximity to other defense-related entities. Economically, the contract's execution in Texas would stimulate local and state economies through job creation (engineering, technical, support roles), procurement from local businesses, and potential investment in facilities. It reinforces Texas's position as a key player in national defense contracting, potentially attracting further industry investment and talent to the region.

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: $483,380,997

Exercised Options: $317,650,070

Current Obligation: $308,445,916

Subaward Activity

Number of Subawards: 117

Total Subaward Amount: $44,004,001

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