DoD Awards Raytheon $49.3M for B-2 Bomber Component Maintenance, Lacking Competition
Contract Overview
Contract Amount: $49,319,446 ($49.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-08-23
End Date: 2028-08-31
Contract Duration: 1,469 days
Daily Burn Rate: $33.6K/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 $49.3 million to RAYTHEON COMPANY for work described as: B-2 CDM REPAIR Key points: 1. Significant contract value for specialized aircraft component repair. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Long duration suggests critical, ongoing need for B-2 support. 4. Focus on a specific, high-value defense asset.
Value Assessment
Rating: questionable
The contract value of $49.3 million for B-2 CDM repair is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or if it reflects a premium due to the sole-source nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to bid and offer competitive pricing.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a non-competitive price for essential B-2 bomber maintenance.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports critical defense infrastructure and national security. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential for B-2 bomber readiness
- Long-term support contract
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending in this area is often characterized by high technical requirements and limited vendor pools, but competitive bidding is still crucial for cost efficiency.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company and does not mention any small business participation. Given the specialized nature of B-2 bomber components, it is unlikely that small businesses would be primary contractors, though they might be subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the justification for not competing the contract is sound and that the pricing is reasonable, despite the lack of competitive pressure.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- High contract value increases financial risk.
- Long contract duration (over 4 years) extends exposure to potential issues.
- Lack of small business participation noted.
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 $49.3 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $49.3 million.
What is the period of performance?
Start: 2024-08-23. End: 2028-08-31.
What is the justification for awarding this contract on a sole-source basis, and has the government explored all avenues for competitive sourcing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this B-2 CDM repair contract, the government must have determined that Raytheon Company is the only capable provider. A thorough review of the justification documentation is necessary to confirm the validity of these claims and ensure no competitive alternatives were overlooked.
How does the per-unit cost of this repair compare to similar maintenance tasks on other advanced aircraft, considering the sole-source nature?
Without competitive bids, establishing a precise benchmark for the per-unit cost is challenging. However, the government should have internal cost-estimating capabilities and historical data for similar complex aircraft component repairs. Comparing this contract's pricing against those benchmarks, adjusted for the specific nature of the B-2 and Raytheon's unique position, would reveal potential cost deviations and inform whether the price is reasonable despite the lack of competition.
What are the long-term implications for B-2 bomber sustainment and cost-effectiveness if sole-source contracts become the norm for critical components?
If sole-source contracts become the norm for critical B-2 components, it could lead to escalating costs over the aircraft's lifespan due to the absence of competitive pressure. This might also stifle innovation from potential competitors and reduce the government's leverage in negotiations. Long-term sustainment could become less cost-effective, potentially impacting the overall readiness and operational budget for the B-2 fleet.
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: RTX Corp
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: $49,319,446
Exercised Options: $49,319,446
Current Obligation: $49,319,446
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: 2024-08-23
Current End Date: 2028-08-31
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2025-10-29
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