GSA Awards $20.3M Contract for Intelligent Electronics Unit to Raytheon Company

Contract Overview

Contract Amount: $20,029,420 ($20.0M)

Contractor: Raytheon Company

Awarding Agency: General Services Administration

Start Date: 2023-09-28

End Date: 2026-07-27

Contract Duration: 1,033 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTELLIGENT ELECTRONICS UNIT IEU

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $20.0 million to RAYTHEON COMPANY for work described as: INTELLIGENT ELECTRONICS UNIT IEU Key points: 1. Contract awarded to Raytheon Company for Intelligent Electronics Unit. 2. Significant award value of $20.3 million. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. NAICS code 336411 points to Aircraft Manufacturing sector. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar aircraft component contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. Lack of competition limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for the Intelligent Electronics Unit.

Public Impact

Defense sector procurement of critical electronic components. Potential impact on aircraft readiness and technological advancement. Raytheon's role as a major defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No small business participation

Positive Signals

Award to established contractor (Raytheon)
Definitive contract with a clear end date

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical area for national defense and aerospace. Spending benchmarks in this sector are highly variable based on technology and scale.

Small Business Impact

The contract does not indicate any provisions for small business participation. This represents a missed opportunity to support small businesses within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and adherence to contract terms. Regular audits of cost and performance will be crucial.

Related Government Programs

Aircraft Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award may lead to inflated costs.
Cost Plus Fixed Fee structure carries inherent cost overrun risk.
Lack of transparency in pricing due to no competition.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.0 million to RAYTHEON COMPANY. INTELLIGENT ELECTRONICS UNIT IEU

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-07-27.

What is the justification for the sole-source award of this contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without further details, it's difficult to assess if this was the most appropriate procurement strategy to ensure best value for the government and taxpayers.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns?

Effective management of a Cost Plus Fixed Fee contract requires robust government oversight, detailed cost tracking, and regular performance reviews. Establishing clear milestones and performance metrics, along with stringent auditing processes, are essential to control costs and ensure the contractor remains within budget.

What is the expected impact of this Intelligent Electronics Unit on existing or future aircraft platforms?

The specific impact of the Intelligent Electronics Unit depends on its intended function and integration. As a component within aircraft manufacturing, it likely enhances operational capabilities, potentially improving performance, safety, or data processing. Its long-term effect will be seen as it is deployed and its technological contributions become evident.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFWA22R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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

Financial Breakdown

Contract Ceiling: $23,666,076

Exercised Options: $23,666,076

Current Obligation: $20,029,420

Actual Outlays: $12,847,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline