DoD Awards Raytheon $27.8M for CY25 CCSS Depot Support, Sole-Sourced
Contract Overview
Contract Amount: $27,817,220 ($27.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2025-12-31
Contract Duration: 364 days
Daily Burn Rate: $76.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY25 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 $27.8 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY25 UNDER THE BASIC COMMAND AND CONTROL SWITCH SYSTEM CONTRACT. Key points: 1. Significant contract value for specialized communication system support. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on depot-level maintenance for critical Air Force systems. 4. Potential for long-term reliance on Raytheon for CCSS lifecycle support.
Value Assessment
Rating: fair
The $27.8 million award for a single year of support appears high without competitive benchmarking. Further analysis is needed to compare this to similar depot-level maintenance contracts for complex communication systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract could lead to inefficient use of taxpayer funds.
Public Impact
Ensures continued operational readiness of critical Air Force communication systems. Supports specialized technical expertise required for depot-level maintenance. Potential impact on future modernization efforts if sole-source trend continues.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to sole-source nature
- Reliance on a single vendor for critical system support
Positive Signals
- Ensures continuity of essential support for Air Force operations
- Leverages existing contractor expertise on the CCSS system
Sector Analysis
This contract falls within the Defense sector, specifically focusing on communication equipment repair and maintenance. Spending benchmarks for similar depot-level support contracts are difficult to ascertain without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and effective service delivery. The Department of the Air Force should document the justification for not competing this requirement.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency in price discovery
- Dependency on a single contractor for critical support
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 $27.8 million to RAYTHEON COMPANY. DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY25 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 $27.8 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-12-31.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. To ensure fair pricing, the government should conduct a thorough price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates. Robust oversight and negotiation are critical in sole-source situations to mitigate the risks associated with a lack of competition.
What is the long-term strategy for CCSS system support, and will future requirements be competed?
The long-term strategy for CCSS system support is crucial for ensuring sustained operational capability and managing costs effectively. Agencies should outline plans for future sustainment, including potential technology refreshes or system replacements. To promote competition and achieve better value, requirements should be structured to allow for broader participation, unless a compelling justification for sole-source exists.
How does the cost of this sole-source contract compare to potential costs if it were competed?
Without a competitive bidding process, it is challenging to definitively state the cost difference. However, sole-source contracts often carry a premium due to the absence of market pressure to offer the lowest price. A competitive environment typically drives down costs through vendor innovation and price reductions. The government should perform rigorous cost analysis to validate the reasonableness of the current price.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
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: $27,817,220
Exercised Options: $27,817,220
Current Obligation: $27,817,220
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,140,539
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: 2025-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-01-08
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