DoD awards Raytheon $113M for Other Communications Equipment Manufacturing, highlighting full and open competition
Contract Overview
Contract Amount: $113,364,152 ($113.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2001-08-22
End Date: 2006-06-30
Contract Duration: 1,773 days
Daily Burn Rate: $63.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST NO FEE
Sector: IT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $113.4 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant contract value of over $113 million awarded to Raytheon. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract spans nearly five years, indicating a long-term need. 4. Focus on 'Other Communications Equipment Manufacturing' suggests specialized defense needs.
Value Assessment
Rating: good
The contract value of $113.4 million over 1773 days (approx. 4.8 years) suggests a substantial investment. Without specific unit data or a direct comparison to similar, recent contracts for specialized communications equipment, a precise pricing assessment is difficult. However, the duration and scope imply a significant procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of 'FULL AND OPEN COMPETITION' indicates that multiple bidders were likely considered, fostering price discovery and potentially leading to more competitive pricing. This method is generally preferred for maximizing value for taxpayer dollars.
Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing the value of taxpayer funds allocated to this defense procurement.
Public Impact
Ensures the Department of Defense has access to critical communications equipment. Supports Raytheon Company's role as a key defense contractor. The long-term nature of the contract provides stability for both the agency and the contractor. Highlights the government's commitment to utilizing competitive processes for major acquisitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value analysis challenging.
- Contract awarded in 2001, with performance ending in 2006; current relevance may be limited.
- No indication of small business participation.
Positive Signals
- Utilized full and open competition.
- Significant contract value awarded to a major defense contractor.
- Long contract duration suggests a sustained need met.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, a critical component of defense infrastructure. Spending benchmarks in this niche area are highly specific, but the $113 million award over nearly five years indicates a significant investment in specialized capabilities.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false). Further analysis would be needed to determine if subcontracting opportunities were pursued or if the nature of the required equipment precluded small business involvement.
Oversight & Accountability
The contract utilized 'FULL AND OPEN COMPETITION,' suggesting a structured procurement process. However, the award date (2001) and completion date (2006) mean current oversight mechanisms and their effectiveness would differ significantly from contemporary standards.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract awarded over 15 years ago.
- Lack of detailed technical specifications.
- No information on small business subcontracting.
- Cost-reimbursement type contract ('COST NO FEE') may reduce cost control incentives.
- No specific performance metrics or outcomes provided.
Tags
other-communications-equipment-manufactu, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.4 million to RAYTHEON COMPANY. See the official description on USAspending.
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 $113.4 million.
What is the period of performance?
Start: 2001-08-22. End: 2006-06-30.
What was the specific type of 'Other Communications Equipment' procured, and how did its technical specifications influence the competition and final price?
The specific 'Other Communications Equipment' procured is not detailed in the provided data. This lack of specificity hinders a thorough analysis of how unique technical requirements might have influenced the competitive landscape and the final negotiated price. Understanding the equipment's role and complexity is crucial for assessing value and potential risks associated with its development or acquisition.
Given the contract's age (2001-2006), what is the current relevance of this spending data for assessing ongoing defense communication needs and contractor performance?
The contract's historical nature (awarded in 2001, completed in 2006) limits its direct relevance for assessing current defense communication needs or Raytheon's present-day performance. Technology and threats evolve rapidly. While it demonstrates past procurement practices and a significant award, contemporary data is necessary to evaluate current requirements, market conditions, and contractor capabilities effectively.
How did the 'COST NO FEE' contract type impact the contractor's incentive to control costs and deliver value, especially over a nearly five-year period?
A 'COST NO FEE' (Cost-Reimbursement, No Fee) contract structure means the contractor is reimbursed for allowable costs but receives no additional profit. This type typically incentivizes the contractor to perform the work but offers minimal financial motivation for cost efficiency. Over a long duration like 1773 days, this could potentially lead to less rigorous cost control compared to fixed-price or incentive-fee contracts, requiring robust government oversight.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 5
Pricing Type: COST NO FEE (S)
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 353 JAMES RECORD ROAD, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-08-22
Current End Date: 2006-06-30
Potential End Date: 2006-06-30 00:00:00
Last Modified: 2024-07-02
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