DoD awards Raytheon $14.7M for Aircraft Parts, highlighting Texas manufacturing
Contract Overview
Contract Amount: $14,733,290 ($14.7M)
Contractor: Raytheon CO.
Awarding Agency: Department of Defense
Start Date: 2001-08-14
End Date: 2005-12-10
Contract Duration: 1,579 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Place of Performance
Location: ARLINGTON, TARRANT County, TEXAS, 76011
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to RAYTHEON CO. for work described as: Key points: 1. Significant contract value for specialized aircraft parts. 2. Raytheon Co. is a major defense contractor. 3. Full and open competition suggests market availability. 4. Contract duration spans over 3 years.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value is $14.7 million over a 1579-day period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for the procurement of essential aircraft parts, supporting military readiness.
Public Impact
Supports the operational readiness of Air Force aircraft. Contributes to the defense industrial base in Texas. Ensures availability of critical aircraft components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs.
- Contract awarded to a large, established defense contractor.
Positive Signals
- Full and open competition utilized.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is driven by military modernization and operational needs.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting large prime contractors dominate this procurement area.
Oversight & Accountability
Oversight would focus on the management of the Time and Materials contract to ensure costs remain within reasonable bounds and that deliverables meet specifications.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of small business participation.
- Contract awarded to a single large prime contractor.
- Limited detail on specific parts procured.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to RAYTHEON CO.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is RAYTHEON CO..
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 $14.7 million.
What is the period of performance?
Start: 2001-08-14. End: 2005-12-10.
What was the specific type of aircraft parts procured under this contract?
The contract specifies 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' While the exact nature of the parts isn't detailed, it implies components essential for aircraft operation and maintenance beyond standard engine or airframe parts.
What are the primary risks associated with Time and Materials contracts for aircraft parts?
The main risk is cost escalation, as the government pays for actual labor hours and material costs. Without strict oversight and defined ceilings, the final cost can significantly exceed initial estimates, potentially leading to inefficient spending.
How does this contract contribute to the overall effectiveness of the Air Force's fleet?
By ensuring the supply of necessary aircraft parts, this contract directly supports the maintenance and operational readiness of the Air Force's aircraft. This contributes to the fleet's ability to perform its missions effectively.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Address: 621 SIX FLAGS DR, ARLINGTON, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,643,117
Exercised Options: $12,643,117
Current Obligation: $14,733,290
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D2028
IDV Type: IDC
Timeline
Start Date: 2001-08-14
Current End Date: 2005-12-10
Potential End Date: 2005-12-10 00:00:00
Last Modified: 2011-11-04
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