Raytheon Company awarded $13.9M for CCSS depot support, a sole-source contract for communication equipment repair

Contract Overview

Contract Amount: $13,918,625 ($13.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $38.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY26 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 $13.9 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY26 UNDER THE BASIC COMMAND AND CONTROL SWITCH SYSTEM CONTRACT. Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Focus on depot-level support suggests a need for specialized maintenance capabilities. 3. The contract duration of one year indicates a potential for future re-competition or extension. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded to Raytheon Company, a known defense contractor with existing system knowledge. 6. The North American Industry Classification System (NAICS) code 811213 points to communication equipment repair and maintenance services.

Value Assessment

Rating: fair

Benchmarking the value of this $13.9 million delivery order is challenging without specific performance metrics or comparable sole-source contracts. However, the firm-fixed-price structure is generally favorable for the government, as it caps costs. The absence of competition, however, raises questions about whether the pricing reflects the best possible value. Further analysis would require understanding the specific services provided and the contractor's historical pricing for similar depot-level support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through a bidding process was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The government relies on negotiation and oversight to ensure fair pricing in sole-source situations.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the operational readiness of the Command and Control Switch System (CCSS). Services delivered include depot-level support, which encompasses repair, maintenance, and potentially overhaul of critical communication equipment. The geographic impact is primarily within Florida, where the contractor's depot facilities are located. Workforce implications include the employment of skilled technicians and support staff at Raytheon's facilities.

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-sourcing could obscure potential alternatives.
Dependence on a single contractor for critical depot support may pose long-term supply chain risks.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award to an incumbent contractor (Raytheon) likely ensures continuity of operations and leverages existing expertise.
Depot-level support indicates a focus on maintaining complex and critical systems.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on communication equipment repair and maintenance. The market for defense depot support services is often characterized by specialized requirements and long-standing relationships between government agencies and established contractors like Raytheon. While specific market size data for CCSS depot support is not readily available, the broader defense MRO (Maintenance, Repair, and Overhaul) market is substantial, with significant government spending allocated to sustain aging platforms and systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Raytheon voluntarily engages small businesses for specific support tasks not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a delivery order under an existing basic contract, the terms and conditions of that parent contract would apply. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Command and Control Systems
Defense Communication Equipment
Depot Maintenance Services
Air Force Logistics Command
Raytheon Company Contracts

Risk Flags

Sole-source award
Potential for price inflation
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to RAYTHEON COMPANY. DELIVERY ORDER TO PROVIDE FOR CCSS DEPOT LEVEL SUPPORT FOR CY26 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 $13.9 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is Raytheon Company's track record with similar depot-level support contracts for the Department of Defense?

Raytheon Company has a long history of providing complex systems and support services to the Department of Defense, including communication systems. Their experience with depot-level maintenance is extensive, often involving specialized repair, overhaul, and sustainment for critical military hardware. Analyzing their past performance on similar contracts, particularly those involving communication equipment and depot operations, would reveal their reliability, cost-effectiveness, and adherence to delivery schedules. Publicly available contract databases and performance reports (like CPARS) can offer insights into their historical performance, though specific details for this particular CCSS contract might be limited due to its sole-source nature and the proprietary aspects of defense systems.

How does the $13.9 million cost compare to market rates for similar communication equipment depot support?

Directly comparing the $13.9 million cost to market rates for similar communication equipment depot support is difficult without detailed service breakdowns and a competitive bidding process. As a sole-source award, the government did not leverage competition to establish a market-driven price. However, the firm-fixed-price (FFP) contract type suggests that the price was negotiated and agreed upon upfront, shifting cost overrun risks to Raytheon. To assess value, one would need to benchmark the labor hours, skill levels, parts, and overhead included against industry standards for comparable depot services. The absence of competition means this price may not represent the lowest achievable cost.

What are the primary risks associated with this sole-source contract for CCSS depot support?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competitive pressure, limited flexibility in adapting to changing technological needs if the contractor is slow to innovate, and a potential over-reliance on Raytheon for critical support. If Raytheon faces operational issues or decides to discontinue certain services, the Air Force might have limited alternatives. Furthermore, the justification for sole-sourcing needs to be robust to ensure that no viable competitive options were overlooked. The long-term sustainment strategy for the CCSS could also be impacted if this sole-source arrangement hinders the development of alternative support capabilities or encourages vendor lock-in.

How effective is depot-level support in ensuring the operational readiness of communication systems like CCSS?

Depot-level support is generally considered highly effective in ensuring the operational readiness of complex communication systems like the CCSS. Unlike organizational-level maintenance performed by end-users, depot-level support involves specialized facilities, advanced diagnostic equipment, skilled technicians, and the capability to perform major repairs, overhauls, and component replacements. This level of support is crucial for addressing systemic issues, extending the lifespan of equipment, and restoring systems to full operational capability after significant failures. For critical systems like CCSS, which are vital for command and control, reliable depot support is essential for maintaining mission effectiveness and reducing downtime.

What has been the historical spending trend for CCSS depot support or similar communication systems maintenance by the Air Force?

Analyzing historical spending trends for CCSS depot support or similar communication systems maintenance by the Air Force is crucial for understanding budget allocation and identifying potential cost efficiencies. Without specific historical data for this delivery order, one would typically look at previous contracts awarded for CCSS sustainment, maintenance, or upgrades. Trends might show increasing costs due to aging equipment, evolving threats requiring system upgrades, or fluctuations based on operational tempo. A review of past budgets for communication systems maintenance within the Air Force could reveal patterns of investment, potential areas of cost growth, and the overall strategic importance placed on maintaining such critical infrastructure.

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: RTX Corp

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: $13,918,625

Exercised Options: $13,918,625

Current Obligation: $13,918,625

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