DoD Awards Raytheon $20.8M for CY19 CCSS Depot Support, Lacking Competition
Contract Overview
Contract Amount: $20,836,620 ($20.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2018-12-18
End Date: 2019-12-31
Contract Duration: 378 days
Daily Burn Rate: $55.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT SERVICES FOR CY19.
Place of Performance
Location: SEMINOLE, PINELLAS County, FLORIDA, 33777
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT SERVICES FOR CY19. Key points: 1. Significant contract value for specialized communication equipment repair. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Limited competition may hinder innovation and cost-saving opportunities. 4. Focus on depot-level support suggests critical infrastructure maintenance.
Value Assessment
Rating: questionable
The $20.8M award for depot-level support services lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, assessing the fairness of the pricing against market rates or similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This method bypasses the price discovery mechanisms inherent in competitive bidding, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition for this $20.8M contract means taxpayers may not be receiving the best possible value, as pricing was not tested against market alternatives.
Public Impact
Ensures continued operational readiness of critical communication systems. Potential for higher costs due to lack of competitive pressure. Supports specialized technical expertise within the defense supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Essential support for critical defense systems
- Established contractor with relevant expertise
Sector Analysis
This contract falls within the Defense sector, specifically focusing on communication equipment repair and maintenance. Spending in this area is crucial for maintaining military readiness, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of the Air Force adequately justified the lack of competition and negotiated a fair price.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of market testing.
- No clear indication of small business participation.
- Limited transparency on pricing justification.
Tags
communication-equipment-repair-and-maint, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to RAYTHEON COMPANY. DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT SERVICES FOR CY19.
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 $20.8 million.
What is the period of performance?
Start: 2018-12-18. End: 2019-12-31.
What justification was provided for the sole-source award, and was it thoroughly reviewed?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would involve examining the specific justification (e.g., unique capabilities, urgent need) and ensuring it aligns with federal acquisition regulations. Without this documentation, it's difficult to assess if the sole-source decision was appropriate and if taxpayer funds were protected.
How does the pricing compare to similar sole-source contracts for communication equipment maintenance?
Benchmarking this $20.8M sole-source contract against similar agreements is challenging without access to detailed pricing structures and contract terms of other sole-source awards. A comprehensive analysis would require comparing labor rates, material costs, and overhead allocations, which are typically not publicly available for sole-source procurements.
What is the long-term strategy for ensuring competitive pricing for CCSS depot support?
The current sole-source award for CY19 suggests a potential gap in long-term competitive strategy. Future planning should prioritize market research and phased approaches to introduce competition, perhaps by breaking down the support into smaller, more contestable components or exploring alternative providers to foster a more competitive environment.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
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: 7887 BRYAN DAIRY RD, LARGO, FL, 33777
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: $21,191,838
Exercised Options: $21,191,838
Current Obligation: $20,836,620
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $470,292
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821815D0001
IDV Type: IDC
Timeline
Start Date: 2018-12-18
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2025-02-04
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)