DoD's $249M Big Safari contract to L3Harris Technologies awarded without competition, raising value-for-money questions

Contract Overview

Contract Amount: $249,376,994 ($249.4M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2024-10-08

Contract Duration: 2,048 days

Daily Burn Rate: $121.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: GREENVILLE, HUNT County, TEXAS, 75402

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $249.4 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. The contract's value of $249 million over its duration suggests a significant investment in specialized aerospace capabilities. 2. Awarded on a sole-source basis, the lack of competition limits opportunities for price discovery and potentially increases costs. 3. The extended performance period of over 2000 days indicates a long-term need for the services or equipment provided. 4. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' suggesting a focus on niche or specialized components. 5. The absence of small business set-aside flags indicates this contract was not specifically targeted to support small businesses. 6. The firm-fixed-price contract type aims to transfer some risk to the contractor, but the sole-source nature may mitigate this benefit.

Value Assessment

Rating: questionable

Benchmarking the value of this $249 million contract is challenging due to its sole-source nature and specialized 'Big Safari' program context. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if alternative solutions could have been procured at a lower cost. The firm-fixed-price structure provides some cost certainty, but the lack of competition means taxpayers may not be receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, L3Harris Technologies Integrated Systems L.P., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. The lack of competition means there was no opportunity to compare proposals or negotiate prices with multiple suppliers, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding environment. The government may be paying a premium for the goods or services without the assurance that a lower price was not achievable.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other elements of the Department of Defense requiring specialized aerospace support under the 'Big Safari' program. The contract is expected to deliver specialized aircraft parts and auxiliary equipment, crucial for maintaining and enhancing specific military aviation capabilities. The geographic impact is centered in Texas, where L3Harris Technologies Integrated Systems L.P. is located, suggesting potential local economic benefits. Workforce implications may include the employment of skilled engineers, technicians, and manufacturing personnel at L3Harris to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially inflates costs for taxpayers.
Sole-source awards can reduce the incentive for contractors to offer their best pricing.
Specialized nature of 'Big Safari' program may limit the pool of potential competitors, but justification for sole-source should be robust.
Extended contract duration could mask inefficiencies if not closely monitored.
Absence of small business set-aside may mean missed opportunities to foster small business participation in defense contracting.

Positive Signals

Firm-fixed-price contract type provides cost certainty to the government, assuming the price was negotiated effectively.
L3Harris Technologies is a known entity in the aerospace and defense sector, suggesting a level of established capability.
The 'Big Safari' program itself is designed to rapidly field critical capabilities, implying the contract addresses an urgent need.
Long contract duration allows for sustained support and development of specialized systems.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a niche within the broader aerospace and defense industry. This contract, part of the 'Big Safari' program, likely supports highly specialized or classified aviation projects. The total addressable market for such specialized components can be limited, often dominated by a few key players with specific expertise. Comparable spending benchmarks are difficult to establish due to the proprietary nature of 'Big Safari' projects, but significant investments are typical for advanced military aviation systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications mandated for small businesses through this specific award. The absence of a set-aside means that opportunities for small businesses to participate in this particular contract are limited unless they are direct suppliers or partners to the prime contractor, L3Harris Technologies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to manage costs. Transparency may be limited due to the specialized nature of the 'Big Safari' program. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Big Safari Program
Air Force Special Operations Command (AFSOC) Contracts
Aerospace Component Manufacturing
Defense Aviation Support Services
Specialized Military Aircraft Modifications

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency due to program nature
Long contract duration increases risk of obsolescence or changing needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $249.4 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 $249.4 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-10-08.

What is the specific nature of the 'Big Safari' program and how does this contract contribute to its objectives?

The 'Big Safari' program is an Air Force initiative focused on rapidly developing and fielding highly specialized intelligence, surveillance, and reconnaissance (ISR) and electronic warfare capabilities. It operates by leveraging existing platforms and integrating new technologies to meet urgent operational needs. This particular contract with L3Harris Technologies likely supports the acquisition, modification, or sustainment of specific aircraft or systems integral to 'Big Safari' missions. The program's agility allows it to bypass traditional, lengthy acquisition processes, but often results in unique, non-standard procurements that can be difficult to benchmark against broader industry spending.

Given the sole-source award, what justification was provided by the Department of the Air Force for not competing this contract?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when a public exigency requires immediate procurement. For 'Big Safari' contracts, justifications often cite the unique, specialized nature of the required capabilities, the need for rapid deployment, or the proprietary nature of the technology involved, which may limit the available pool of qualified contractors. A detailed justification document, often available through contract award notices, would outline the specific reasons why L3Harris was the only viable option.

How does the firm-fixed-price (FFP) contract type interact with the sole-source award to impact overall value for money?

A firm-fixed-price contract aims to provide cost certainty by fixing the price regardless of the contractor's actual costs. This shifts cost-related risks to the contractor. However, when awarded on a sole-source basis, the effectiveness of FFP in ensuring value for money is diminished. Without competition, the government lacks leverage to negotiate the lowest possible price. While the FFP structure still caps the government's liability, the initial price may be higher than it would be in a competitive scenario, potentially negating some of the value-for-money benefits typically associated with FFP contracts.

What are the potential risks associated with a sole-source award of this magnitude ($249 million) and long duration (over 5 years)?

The primary risk of a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. The contractor may have less incentive to control costs or offer innovative, cost-saving solutions. The long duration increases the risk that the contracted solution may become outdated or that market conditions or requirements could change significantly, potentially leading to a contract that no longer represents the best value. Furthermore, sole-source awards can create a perception of favoritism and may stifle innovation within the broader defense industrial base by limiting opportunities for other capable firms.

Can we compare the per-unit cost or pricing structure of this contract to similar 'Big Safari' program contracts or other specialized aerospace procurements?

Direct comparison of per-unit costs or pricing structures for 'Big Safari' contracts is exceptionally difficult, if not impossible, due to the highly specialized and often classified nature of the work. These programs frequently involve unique modifications, proprietary technologies, and bespoke integration efforts that do not lend themselves to standardized unit pricing. Furthermore, the sole-source nature of many 'Big Safari' awards means that pricing is a result of direct negotiation rather than competitive benchmarking. Information on comparable contracts is rarely made public in sufficient detail to allow for meaningful cost analysis.

What are the implications for L3Harris Technologies' track record and future opportunities given this significant sole-source award?

This sole-source award reinforces L3Harris Technologies' position as a key provider of specialized aerospace solutions, particularly within the 'Big Safari' program. It demonstrates the Air Force's confidence in their capabilities to deliver complex, mission-critical systems. For L3Harris, this contract provides substantial, long-term revenue and strengthens their relationship with a major defense client. However, relying heavily on sole-source awards can sometimes limit a company's exposure to competitive market forces, which can be a double-edged sword. Future opportunities may continue to stem from similar specialized needs, but demonstrating competitiveness in broader, more open solicitations will also be crucial for sustained growth.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

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: $249,376,994

Exercised Options: $249,376,994

Current Obligation: $249,376,994

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $211,725,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862016G3027

IDV Type: BOA

Timeline