DoD Awards Raytheon $21.1M for B-2 Bomber Component Repair, Lacking Competition
Contract Overview
Contract Amount: $21,117,982 ($21.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-08-08
End Date: 2028-07-31
Contract Duration: 1,819 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-2 CDM REPAIR
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $21.1 million to RAYTHEON COMPANY for work described as: B-2 CDM REPAIR Key points: 1. Significant contract value of $21.1 million for specialized aircraft parts. 2. Sole-source award to Raytheon Company raises concerns about competitive pricing. 3. Long contract duration of nearly 5 years suggests potential for cost overruns. 4. Focus on critical defense systems highlights national security implications.
Value Assessment
Rating: questionable
The contract's value of $21.1 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning Raytheon was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $21.1 million contract means taxpayers may be paying a premium for essential B-2 bomber repair services.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports specialized manufacturing jobs within the defense sector. Highlights reliance on a single contractor for critical component maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Supports critical defense asset
- Utilizes established contractor
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by high technical requirements and limited competition due to specialized capabilities.
Small Business Impact
The awardee is Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source contract, limiting opportunities for smaller enterprises in this segment.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight will be crucial to ensure Raytheon fulfills the contract requirements effectively and that costs remain justified throughout the performance period, despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Long contract duration increases risk of cost overruns.
- Potential for vendor lock-in with specialized components.
- Limited transparency on the necessity of sole-source award.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to RAYTHEON COMPANY. B-2 CDM REPAIR
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 $21.1 million.
What is the period of performance?
Start: 2023-08-08. End: 2028-07-31.
What is the justification for the sole-source award, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this B-2 CDM repair, the DoD would need to demonstrate why only Raytheon could perform the work. Exploring competitive strategies, even for specialized components, is vital to ensure fair pricing and encourage innovation.
How will the government ensure cost-effectiveness and prevent potential overruns during the nearly five-year contract period?
Given the sole-source nature and long duration, robust cost monitoring and performance management are essential. This includes detailed audits, regular progress reviews, and potentially establishing cost-control incentives within the contract to mitigate risks of overruns and ensure value for taxpayer money.
What is the long-term strategy for ensuring competitive sourcing for critical B-2 bomber repair and maintenance needs?
The long-term strategy should involve market research to identify potential new sources or foster competition among existing suppliers. This could include breaking down requirements into smaller contracts, investing in technology to enable broader participation, or developing alternative repair methods to reduce reliance on a single entity.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $21,117,982
Exercised Options: $21,117,982
Current Obligation: $21,117,982
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,099,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA811923D0002
IDV Type: IDC
Timeline
Start Date: 2023-08-08
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-08-21
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