DoD Spends $67.8M on 1,365 MRAP Radios and Antennas from Raytheon

Contract Overview

Contract Amount: $67,876,725 ($67.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-04-14

End Date: 2010-11-15

Contract Duration: 215 days

Daily Burn Rate: $315.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 1,365 SOTM 1.4 MRAP (ITEM 5) PART NUMBER 902841-804 AT A UNIT PRICE OF $25,250, 1,365 RT-1672D RADIO (ITEM 8) PART NUMBER 726639-801 AT A UNIT PRICE OF $20,992.00, 1,365 HANDSET (ITEM 17) PART NUMBER H-250/U AT A UNIT PRICE OF $83.00, 1,365 AN/PSC-5D TECH MANUAL (ITEM 116) PART NUMBER MX-64-352 AT A UNIT PRICE OF $50.00, 1,365 AN/PSC-5D TECH BULLETIN (ITEM 117) PART NUMBER MX-64-356 AT A UNIT PRICE OF $50.00, 1,400 LOS WHIP ANTENNA (ITEM 41) PART NUMBER SFB3512T/VRC AT A UNIT PRICE OF $941.00, 1400 X-BLADE SATCOM ANTENNA (ITEM 39) PART NUMBER 19-429P58+SK AT A UNIT PRICE OF $ 2,278.00. FOR A TOTAL ORDER OF $67,876,725.00 IN ACCORDANCE WITH TERMS AND CONDITIONS OF CONTRACT W15P7T-09-D-K001-STATEMENT OF WORK AND ATTACHMENT 0003.

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $67.9 million to RAYTHEON COMPANY for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 1,365 SOTM 1.4 MRAP (ITEM 5) PART NUMBER 902841-804 AT A UNIT PRICE OF $25,250, 1,365 RT-1672D RADIO (ITEM 8) PART NUMBER 726639-801 AT A UNIT PRICE OF $20,992.00, 1,365 HANDSET (ITEM 17) PART NUMBER H-250/U AT A UNIT PRICE OF $83.… Key points: 1. Procurement of 1,365 MRAP radios and associated antennas for $67.8M. 2. Unit prices range from $83 for handsets to $25,250 for MRAP units. 3. Contract awarded to Raytheon Company by the Department of the Army. 4. This is a delivery order under an existing contract, not competed. 5. Spending is concentrated in the Radio and Wireless Communications Equipment sector.

Value Assessment

Rating: fair

The unit prices for the MRAP units ($25,250) and RT-1672D radios ($20,992) appear high compared to market benchmarks for similar tactical communication equipment. However, the antennas and smaller components like handsets and tech manuals seem more reasonably priced.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have led to higher prices for the primary equipment, as there was no market pressure to drive costs down.

Taxpayer Impact: Taxpayer funds are being used for this procurement. The lack of competition raises concerns about whether the best possible price was achieved for the government.

Public Impact

Equipping military vehicles with essential communication and navigation systems. Supports ongoing military operations and personnel safety through advanced technology. Potential for cost savings if future procurements are competed. Impacts the Radio and Wireless Communications Equipment Manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high unit prices for core equipment

Positive Signals

Procurement of critical military hardware
Existing contract vehicle used

Sector Analysis

This spending falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Benchmarks for similar tactical communication systems can vary widely, but the unit price for the MRAP units seems elevated compared to commercial equivalents.

Small Business Impact

No specific information is provided regarding small business participation in this delivery order. As it's a sole-source award to a large prime contractor, small business subcontracting opportunities may be limited or not explicitly detailed.

Oversight & Accountability

The award is a delivery order under an existing contract (W15P7T-09-D-K001), suggesting some level of prior oversight. However, the lack of competition for this specific order warrants further scrutiny regarding justification and price reasonableness.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potentially high unit prices
Limited transparency on justification for sole-source award
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.9 million to RAYTHEON COMPANY. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE 1,365 SOTM 1.4 MRAP (ITEM 5) PART NUMBER 902841-804 AT A UNIT PRICE OF $25,250, 1,365 RT-1672D RADIO (ITEM 8) PART NUMBER 726639-801 AT A UNIT PRICE OF $20,992.00, 1,365 HANDSET (ITEM 17) PART NUMBER H-250/U AT A UNIT PRICE OF $83.00, 1,365 AN/PSC-5D TECH MANUAL (ITEM 116) PART NUMBER MX-64-352 AT A UNIT PRICE OF $50.00, 1,365 AN/PSC-5D TECH BULLETIN (ITEM 117) PART NUMBER MX-64-356 AT A UNIT PRICE OF $50.00, 1,400 LOS WHIP ANTENNA (ITEM 41) PART

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $67.9 million.

What is the period of performance?

Start: 2010-04-14. End: 2010-11-15.

What is the justification for not competing this significant delivery order, and were alternative sources evaluated?

The provided data states the contract was 'NOT COMPETED'. Without further documentation, the specific justification is unknown. Typically, sole-source awards require a justification and approval (J&A) detailing why full and open competition is not feasible. This could be due to unique capabilities, urgent needs, or lack of market research. Evaluating alternative sources would be part of this J&A process.

How do the unit prices for the MRAP units and RT-1672D radios compare to historical pricing or other government contracts for similar items?

The unit price of $25,250 for the SOTM 1.4 MRAP and $20,992 for the RT-1672D radio appears high when compared to publicly available data for similar tactical communication systems. While specific contract details vary, these prices may exceed benchmarks, suggesting potential overpricing or unique configuration requirements not detailed here.

What is the expected operational lifespan and effectiveness of these procured communication systems, and how does it justify the investment?

The data does not specify the expected operational lifespan or detailed effectiveness metrics for these systems. However, as critical components for MRAP vehicles, their effectiveness is presumed to be high for ensuring battlefield communication and situational awareness. The investment is justified by the need for reliable, ruggedized communication equipment in demanding operational environments.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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

Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,876,725

Exercised Options: $67,876,725

Current Obligation: $67,876,725

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T09DK001

IDV Type: IDC

Timeline