DoD awards $59.9M for REELING MACHINE, AIR to Raytheon Company, with no competition

Contract Overview

Contract Amount: $59,936,432 ($59.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2011-09-16

End Date: 2016-11-01

Contract Duration: 1,873 days

Daily Burn Rate: $32.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REELING MACHINE,AIR

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $59.9 million to RAYTHEON COMPANY for work described as: REELING MACHINE,AIR Key points: 1. Significant award value of $59.9M for specialized aircraft parts. 2. Sole-source award to Raytheon Company, a major defense contractor. 3. Potential for higher costs due to lack of competitive bidding. 4. Award falls under 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The award value of $59.9M for a 'REELING MACHINE, AIR' is substantial. Without competitive data, it's difficult to assess if this price is reasonable compared to similar specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a nearly $60M contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense received specialized equipment without exploring alternative suppliers. Raytheon Company secured a large contract without facing market competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Award to established contractor
Specific equipment procured

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area can vary significantly based on defense needs and technological advancements.

Small Business Impact

The awardee, Raytheon Company, is a large business. There is no indication that small businesses were involved as subcontractors or partners in this sole-source award.

Oversight & Accountability

The 'NOT COMPETED' status suggests that oversight mechanisms may not have adequately explored competitive alternatives. Further review is needed to understand the justification for this sole-source decision.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award raises concerns about price reasonableness.
Lack of competition may have led to inflated costs.
Potential for missed opportunities with other suppliers.
Limited transparency into the procurement decision.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.9 million to RAYTHEON COMPANY. REELING MACHINE,AIR

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $59.9 million.

What is the period of performance?

Start: 2011-09-16. End: 2016-11-01.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without access to the contract's justification documentation, it's impossible to determine the specific reasons why Raytheon Company was the only viable option for the REELING MACHINE, AIR.

What is the expected lifespan and operational criticality of this 'REELING MACHINE, AIR'?

The operational criticality and expected lifespan of the 'REELING MACHINE, AIR' are crucial for understanding the long-term value of this $59.9M investment. If it's a mission-critical component with a long service life, the expenditure might be justified. However, if it's for a short-term need or has a limited lifespan, the cost-effectiveness becomes more questionable, especially given the lack of competition.

Are there any performance metrics or quality assurance data available for this contract?

Performance metrics and quality assurance data are essential for evaluating the effectiveness of any contract. For this $59.9M award, understanding if Raytheon Company met delivery schedules, quality standards, and any specified performance requirements would provide insight into the overall success and value delivered to the Department of Defense.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871

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: $59,936,432

Exercised Options: $59,936,432

Current Obligation: $59,936,432

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRPA109G001Y

IDV Type: IDC

Timeline