DoD Awards $20.18M for B-2 CDM Repair to Raytheon Company, Lacking Competition
Contract Overview
Contract Amount: $20,176,645 ($20.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2028-07-31
Contract Duration: 1,494 days
Daily Burn Rate: $13.5K/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 $20.2 million to RAYTHEON COMPANY for work described as: B-2 CDM REPAIR Key points: 1. Significant contract value of over $20 million for critical aircraft repair. 2. Sole-source award to Raytheon Company raises questions about competitive pricing. 3. Potential risk associated with single-source reliance for specialized defense components. 4. Spending falls within the broader 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $20.18 million for B-2 CDM repair is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized aircraft component repairs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no other vendors were considered. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple bids were solicited.
Taxpayer Impact: The absence of competition for this $20.18 million contract means taxpayers may be paying a premium for the B-2 CDM repair services.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports critical maintenance for a high-value strategic asset. Highlights reliance on specific contractors for specialized defense systems. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
Positive Signals
- Ensures critical repair capability
- Supports national defense
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining the operational readiness of military aviation. Spending benchmarks for specialized repair services can vary widely based on complexity and exclusivity of technology.
Small Business Impact
The award to Raytheon Company, a large defense contractor, does not appear to include provisions for small business participation. This contract is unlikely to benefit small businesses directly.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- Dependency on a single contractor for critical repairs.
- Lack of transparency in price negotiation.
- No apparent small business participation.
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 $20.2 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 $20.2 million.
What is the period of performance?
Start: 2024-06-28. End: 2028-07-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense should have documented this justification. To ensure fair pricing, they may rely on historical pricing data, independent cost estimates, or engage in detailed price negotiations with the sole provider.
What are the long-term risks associated with relying on a single contractor for critical B-2 bomber repair components?
Long-term reliance on a single contractor can lead to vendor lock-in, reduced bargaining power for the government, and potential price increases over time. It also creates a vulnerability if the contractor experiences financial difficulties, operational issues, or decides to discontinue the product line. This dependency could impact the B-2's sustainment and readiness.
How does the cost of this repair contract compare to similar maintenance activities on other high-value military aircraft?
Without competitive bids, a direct cost comparison is challenging. However, the $20.18 million price tag for a 5-year repair contract for specific components of the B-2 bomber should be benchmarked against the total lifecycle costs of similar strategic aircraft. The lack of competition makes it difficult to determine if this represents value for money.
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: $20,176,645
Exercised Options: $20,176,645
Current Obligation: $20,176,645
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: 2024-06-28
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-06-12
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