DoD awards Raytheon $31M for CY23 CCSS Depot Support, extending contract through Dec 2024
Contract Overview
Contract Amount: $31,004,438 ($31.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-12-07
End Date: 2024-12-31
Contract Duration: 755 days
Daily Burn Rate: $41.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY23 UNDER THE BASIC COMMAND AND CONTROL SWITCH SYSTEM CONTRACT.
Place of Performance
Location: SEMINOLE, PINELLAS County, FLORIDA, 33777
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY23 UNDER THE BASIC COMMAND AND CONTROL SWITCH SYSTEM CONTRACT. Key points: 1. Spending: $31M for depot-level support of Communication Equipment Repair and Maintenance. 2. Competition: Awarded as a Delivery Order under an existing contract, not competed. 3. Risk: Potential for higher costs due to lack of competition. 4. Sector: Information Technology (Communication Equipment Repair).
Value Assessment
Rating: fair
The $31M award is for depot-level support. Benchmarking against similar communication equipment repair contracts is difficult without more detail on the specific services provided under the CCSS contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a Delivery Order under an existing contract, indicating it was not competed at the task order level. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying more than necessary due to the lack of competitive bidding for this specific delivery order.
Public Impact
Ensures continued operational readiness of critical communication systems. Supports Air Force's Command and Control capabilities. Potential for cost savings if future orders are competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition for delivery order
- Potential for cost overruns
- Long contract duration
Positive Signals
- Supports critical defense infrastructure
- Existing contract vehicle
Sector Analysis
This spending falls within the IT sector, specifically focusing on the maintenance and repair of communication equipment essential for military operations. Benchmarks for similar depot-level support contracts can vary widely based on system complexity and service scope.
Small Business Impact
There is no indication that small businesses were involved in this specific delivery order. The prime contractor, Raytheon Company, is a large aerospace and defense firm.
Oversight & Accountability
Oversight is managed by the Department of the Air Force. The use of a delivery order under an existing contract warrants scrutiny to ensure fair pricing and necessity.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition at the delivery order level.
- Potential for inflated pricing.
- Limited transparency into specific service costs.
- Long duration of the delivery order (755 days).
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 $31.0 million to RAYTHEON COMPANY. DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY23 UNDER THE BASIC COMMAND AND CONTROL SWITCH SYSTEM CONTRACT.
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 $31.0 million.
What is the period of performance?
Start: 2022-12-07. End: 2024-12-31.
What was the original justification for awarding this delivery order without further competition?
The data indicates this is a Delivery Order under an existing contract, suggesting it might be a continuation of services or a specific requirement that fell under the original contract's scope. The justification for not competing at the delivery order level would likely relate to urgency, unique capabilities of the incumbent, or specific contract terms that allowed for such orders.
How does the per-unit cost of this support compare to industry benchmarks for similar communication systems?
Without specific details on the services rendered and the units supported, a direct per-unit cost comparison is not feasible. The total award of $31M for a 2-year period suggests a significant operational requirement. A detailed cost analysis of the specific tasks performed would be needed to assess value against industry standards.
What is the risk of performance degradation or increased costs given the lack of competition?
The primary risk is that the government may not be receiving the best possible price due to the absence of competitive pressure. Performance degradation is less likely if Raytheon is meeting current standards, but without competition, there's reduced incentive for proactive improvement or cost-efficiency innovation.
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: $31,004,438
Exercised Options: $31,004,438
Current Obligation: $31,004,438
Actual Outlays: $1,422,837
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $3,894,426
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
Start Date: 2022-12-07
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-04-26
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)