Air Force Awards $15.5M for F-16 Center Display Units to Raytheon Company

Contract Overview

Contract Amount: $15,471,263 ($15.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-09-19

End Date: 2026-04-03

Contract Duration: 927 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF OT IGF F-16 CENTER DISPLAY UNIT (CDU)

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to RAYTHEON COMPANY for work described as: IGF OT IGF F-16 CENTER DISPLAY UNIT (CDU) Key points: 1. The contract is for F-16 Center Display Units (CDUs), a critical component for aircraft navigation and operation. 2. Raytheon Company, a major defense contractor, is the sole awardee. 3. The contract is a delivery order under an existing contract, indicating a continuation of a relationship. 4. The sector is dominated by large, established defense manufacturers.

Value Assessment

Rating: fair

The contract value of $15.5 million for 927 units is difficult to assess without specific per-unit cost data. However, the firm-fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting it may be a sole-source award or a delivery order under a previously competed contract. The lack of competition limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The absence of competition may lead to higher prices than if the contract were openly competed, impacting taxpayer funds.

Public Impact

Ensures continued operational capability for the F-16 fighter jet fleet. Supports a key defense contractor and its supply chain. Potential for increased costs due to lack of competitive bidding. Impact on readiness if CDU availability is critical.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award potential
Limited transparency on pricing

Positive Signals

Supports critical defense asset
Firm-fixed-price contract

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, long development cycles, and significant government reliance. Spending benchmarks for specialized components like CDUs are often proprietary and vary widely based on technology and volume.

Small Business Impact

This contract does not appear to involve small businesses directly, as it is awarded to a large prime contractor, Raytheon Company. Subcontracting opportunities for small businesses are not specified in the provided data.

Oversight & Accountability

As a delivery order under an existing contract, oversight may be less intensive than for a new sole-source award. However, the Department of Defense's Inspector General and contracting officers are responsible for ensuring fair pricing and performance.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of transparency in pricing
Potential for cost overruns due to non-competition
Dependency on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to RAYTHEON COMPANY. IGF OT IGF F-16 CENTER DISPLAY UNIT (CDU)

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 $15.5 million.

What is the period of performance?

Start: 2023-09-19. End: 2026-04-03.

What was the original contract under which this delivery order was issued, and was it competed?

The provided data indicates this is a delivery order (aw: DELIVERY ORDER) but does not specify the parent contract number or its competitive history. Further investigation into the contract vehicle is necessary to understand the initial competition and pricing basis.

What is the historical cost per unit for these CDUs, and how does this award compare?

Without historical per-unit cost data or benchmarks for similar F-16 CDU procurements, it is challenging to definitively assess the value. The firm-fixed-price nature provides cost certainty for this specific order, but the absence of competition raises questions about whether the government secured the best possible price.

Are there any alternative or upgraded display technologies that could be considered for future procurements to enhance capabilities or reduce costs?

Exploring alternative display technologies is a prudent question for long-term modernization. While this contract focuses on existing F-16 CDUs, future R&D and procurement strategies should consider advancements that could offer improved performance, reduced lifecycle costs, or enhanced pilot situational awareness.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

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: 6125 E 21ST ST, INDIANAPOLIS, IN, 46219

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: $15,471,263

Exercised Options: $15,471,263

Current Obligation: $15,471,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA823219D0005

IDV Type: IDC

Timeline