DoD's $579M BIG SAFARI Contract Awarded to L3Harris for Engineering Services

Contract Overview

Contract Amount: $578,994,404 ($579.0M)

Contractor: L3harris Technologies Integrated Systems L.P.

Awarding Agency: Department of Defense

Start Date: 2020-11-30

End Date: 2023-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $528.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $579.0 million to L3HARRIS TECHNOLOGIES INTEGRATED SYSTEMS L.P. for work described as: BIG SAFARI Key points: 1. Significant contract value of $579 million highlights major investment. 2. Sole-source award to L3Harris raises questions about competition and potential price inflation. 3. Long contract duration (1095 days) suggests a complex, ongoing need. 4. Engineering services sector is critical for defense modernization.

Value Assessment

Rating: questionable

The contract value of $579 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for the engineering services provided. Benchmarking against similar sole-source contracts in the defense sector would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement process. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition for a nearly $579 million contract likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single contractor for critical engineering services could pose a risk. Lack of transparency in the procurement process hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Contract awarded to established defense contractor

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical area for the Department of Defense. Spending in this sector is often high due to the complexity and specialized nature of defense projects, but competitive bidding is crucial to ensure value.

Small Business Impact

The contract was awarded to L3Harris Technologies Integrated Systems L.P., a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, potentially limiting their opportunities.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government received fair value and that the justification for not competing the contract was sound. Accountability for the pricing and performance rests heavily on the contracting agency.

Related Government Programs

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

Risk Flags

Sole-source award raises concerns about competition.
Potential for inflated pricing due to lack of competition.
Limited transparency in the procurement process.
High contract value warrants scrutiny.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $579.0 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 $579.0 million.

What is the period of performance?

Start: 2020-11-30. End: 2023-11-30.

What was the specific justification for awarding this significant contract on a sole-source basis, and what steps were taken to ensure the price was fair and reasonable?

The justification for a sole-source award is critical for understanding the procurement's integrity. Agencies must provide a compelling reason, such as unique capabilities or urgent needs, and conduct thorough price analysis. Without this information, it's impossible to confirm if the government secured fair value or if taxpayer funds were used efficiently. Further review of the contract file is needed.

What are the potential risks associated with awarding a nearly $579 million contract to a single vendor for an extended period without competition?

Awarding a large, long-term contract solely to one vendor creates several risks. It can lead to complacency and reduced innovation from the contractor, as there's no competitive pressure to improve. It also makes the government dependent on that single entity, increasing vulnerability if the contractor faces financial issues, performance problems, or changes in strategic direction. Furthermore, it limits opportunities for other capable firms.

How does this sole-source award impact the overall effectiveness of the Department of Defense's procurement strategy and its ability to achieve best value for taxpayer money?

Sole-source awards, especially for substantial amounts, can undermine the effectiveness of a procurement strategy aimed at achieving best value. They bypass the competitive process that typically drives down prices and fosters innovation. While sometimes necessary, frequent or poorly justified sole-source contracts suggest potential systemic issues in planning or market research, ultimately hindering the DoD's ability to maximize the impact of its budget.

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: FIRM FIXED PRICE (J)

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: $870,584,333

Exercised Options: $582,787,192

Current Obligation: $578,994,404

Actual Outlays: $120,523

Subaward Activity

Number of Subawards: 166

Total Subaward Amount: $53,167,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862019G4006

IDV Type: BOA

Timeline