Air Force awards Raytheon $24M for Command and Control Switching System support, a sole-source contract

Contract Overview

Contract Amount: $24,090,442 ($24.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-11-19

End Date: 2022-12-31

Contract Duration: 407 days

Daily Burn Rate: $59.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER TO PROVIDE FOR COMMAND AND CONTROL SWITCHING SYSTEM (CCSS) DEPOT LEVEL SUPPORT FOR CY22

Place of Performance

Location: SEMINOLE, PINELLAS County, FLORIDA, 33777

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER TO PROVIDE FOR COMMAND AND CONTROL SWITCHING SYSTEM (CCSS) DEPOT LEVEL SUPPORT FOR CY22 Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Focus on depot-level support suggests a critical need for maintaining existing systems. 3. The contract duration of over a year indicates a significant operational requirement. 4. Awarded as a delivery order, it may represent a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The fixed-price nature of the contract aims to control costs for the government. 6. Geographic location in Florida points to a specific operational base or depot.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract or the scope of services. However, the award amount of approximately $24 million for depot-level support of a command and control system over more than a year suggests a substantial investment. Without competitive bids, it's difficult to definitively assess if this represents optimal value for money. Comparisons to similar depot support contracts for complex communication equipment would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This typically occurs when a specific capability is only available from a single source, or in situations where urgency or a lack of planning necessitates a non-competitive award. The absence of competition means there was no opportunity for other qualified vendors to bid, potentially leading to higher prices than if the contract had been competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The government may have paid a premium due to the lack of alternative offers.

Public Impact

The Department of the Air Force benefits from continued operational readiness of its Command and Control Switching Systems. Depot-level support ensures the complex communication equipment is maintained and repaired to high standards. Personnel at the Florida-based facility will be involved in the execution of this support contract. The operational effectiveness of critical command and control functions within the Air Force is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Dependence on a single contractor for critical system support could pose a long-term risk.
The specific technical requirements and performance metrics are not detailed, making it hard to assess effectiveness.
Potential for cost overruns if not closely managed, despite fixed-price structure.

Positive Signals

Award to an established contractor (Raytheon Company) with likely experience in this domain.
Fixed-price contract type provides cost certainty for the government.
Delivery order structure allows for phased funding and management of support.
Focus on depot-level support indicates a commitment to maintaining critical infrastructure.
Specific location in Florida may align with existing infrastructure and personnel.

Sector Analysis

The Command and Control Switching System (CCSS) falls within the broader defense communications and IT infrastructure sector. This sector is characterized by high technological complexity, long product lifecycles, and significant government investment. Contracts for depot-level support are crucial for ensuring the reliability and longevity of these systems, which are vital for national security operations. Spending in this area is often driven by the need to maintain legacy systems while also integrating newer technologies. Comparable spending benchmarks would involve analyzing other contracts for similar communication equipment maintenance and support across various military branches.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Raytheon Company chooses to subcontract portions of the work to them. Further analysis would be needed to determine if any small business participation is planned or mandated through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order under a potentially larger contract, existing oversight mechanisms for that parent contract would likely apply. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Command and Control Systems
Communication Equipment Maintenance
Depot Level Repair
Air Force IT Infrastructure
Defense Communications Networks

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to RAYTHEON COMPANY. DELIVERY ORDER TO PROVIDE FOR COMMAND AND CONTROL SWITCHING SYSTEM (CCSS) DEPOT LEVEL SUPPORT FOR CY22

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 $24.1 million.

What is the period of performance?

Start: 2021-11-19. End: 2022-12-31.

What is the specific justification for awarding this contract on a sole-source basis to Raytheon Company?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as the unique capability of the contractor, urgent and compelling needs, or a lack of market research identifying other sources. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to definitively state the reason. However, for complex defense systems like command and control, it's common for a single contractor to possess the proprietary knowledge, technical data, or specialized facilities required for depot-level support, leading to sole-source awards to maintain system integrity and operational readiness.

How does the $24 million award compare to historical spending on Command and Control Switching System (CCSS) depot support?

To compare this $24 million award to historical spending, we would need access to historical contract data for CCSS depot support, ideally from the Department of the Air Force or Department of Defense. This would involve identifying previous contracts with similar scopes of work, durations, and service providers. Analyzing the annual spending trends, average contract values, and the number of competitors in past solicitations would provide context. Without this historical data, it's difficult to determine if $24 million represents an increase, decrease, or stable level of investment for this specific type of support. The 'br' value of 59190 might represent a baseline or previous contract value, but its context is unclear.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this depot support contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for depot-level support of critical systems like CCSS, KPIs would focus on metrics such as system uptime, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and the accuracy of repairs. SLAs would define response times for support requests, delivery timelines for repaired components, and potentially penalties for non-performance. These details are usually found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the provided data.

What is Raytheon Company's track record with providing similar command and control system support to the U.S. military?

Raytheon Company, now part of RTX, has a long and extensive history of providing complex systems and support services to the U.S. military, including command, control, communications, computers, and intelligence (C4I) systems. They are a major defense contractor involved in numerous programs across all branches of the armed forces. Their experience likely includes developing, integrating, and sustaining sophisticated communication and battle management systems. While specific details on their CCSS depot support performance would require deeper contract analysis, their general track record suggests they possess the technical expertise and infrastructure necessary for such a role.

What are the potential risks associated with relying on a single contractor for critical command and control system maintenance?

The primary risk of relying on a single contractor for critical system maintenance is the potential for reduced competition, leading to higher costs over time. There's also a risk of vendor lock-in, where the government becomes dependent on that specific contractor's technology, processes, and pricing. If the contractor experiences financial difficulties, operational issues, or decides to exit the market, it could severely disrupt the government's ability to maintain the system. Furthermore, a sole-source arrangement can sometimes lead to complacency in service quality or innovation compared to a competitive environment.

What is the estimated total value of the parent contract, if this is a delivery order under an IDIQ?

The provided data identifies this award as a 'DELIVERY ORDER' with a specific value of $24,090,442.29. However, it does not specify the parent contract type (e.g., IDIQ) or its total ceiling value. Delivery orders are typically issued against a base IDIQ contract to procure specific quantities of supplies or services. Without information on the base contract, such as its award date, ceiling value, and period of performance, it is impossible to estimate the total value of the parent contract. The 'br' value of 59190 might be a reference number or a previous contract value, but its relation to the parent contract's total value is not clear from the data.

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: $24,090,442

Exercised Options: $24,090,442

Current Obligation: $24,090,442

Actual Outlays: $1,842,346

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,225,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA821820D0001

IDV Type: IDC

Timeline