DoD's $58.9M ANDVT VACM FRP Program Awarded to Raytheon Without Competition
Contract Overview
Contract Amount: $58,892,499 ($58.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-12-08
End Date: 2020-09-30
Contract Duration: 1,027 days
Daily Burn Rate: $57.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINAL (ANDVT) CRYPTOGRAPHIC MODERNIZATION (VACM) FULL RATE PRODUCTION (FRP) PROGRAM
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46808
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $58.9 million to RAYTHEON COMPANY for work described as: VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINAL (ANDVT) CRYPTOGRAPHIC MODERNIZATION (VACM) FULL RATE PRODUCTION (FRP) PROGRAM Key points: 1. The Department of Defense awarded a significant contract for cryptographic modernization to Raytheon. 2. The contract was not competed, raising questions about potential price discovery. 3. The spending falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. 4. The firm fixed price contract type aims to control costs, but lack of competition limits benchmarking.
Value Assessment
Rating: questionable
The contract's value of $58.9 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal or if taxpayers received the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits the government's ability to leverage market competition to drive down prices and ensure optimal value.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a scenario where multiple vendors vied for the contract.
Public Impact
Ensures secure communication capabilities for the Department of Defense. Supports advanced wireless communication equipment manufacturing. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed price contract
- Modernization of critical communication systems
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, with a total value of $58.9 million. Benchmarking is difficult due to the sole-source nature.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award, as the 'sb' field is false.
Oversight & Accountability
The contract was awarded as a delivery order under a larger program. Oversight would focus on ensuring the delivery meets specifications and the fixed price remains adhered to.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price discovery.
- Potential for inflated costs due to lack of competition.
- Dependency on a single vendor for critical technology.
- No small business participation noted.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.9 million to RAYTHEON COMPANY. VINSON/ADVANCED NARROWBAND DIGITAL VOICE TERMINAL (ANDVT) CRYPTOGRAPHIC MODERNIZATION (VACM) FULL RATE PRODUCTION (FRP) PROGRAM
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 $58.9 million.
What is the period of performance?
Start: 2017-12-08. End: 2020-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details on the ANDVT VACM program, it's presumed there was a specific reason cited by the Department of Defense to bypass competitive procedures, potentially related to national security or specialized technical expertise.
How does the lack of competition impact the long-term cost-effectiveness of this cryptographic modernization?
A sole-source award inherently removes the downward price pressure that competition provides. While a firm fixed price contract aims to cap costs, the initial price may be higher than if multiple vendors had competed. This could lead to reduced long-term cost-effectiveness for the taxpayer, as there's no mechanism for price re-evaluation based on market alternatives.
What are the potential risks associated with relying on a single vendor for critical communication modernization?
Relying on a single vendor for critical communication modernization introduces several risks. These include potential supply chain vulnerabilities, lack of innovation if the vendor becomes complacent, and increased leverage for the vendor in future negotiations. If the vendor faces financial difficulties or operational issues, it could significantly disrupt the government's communication capabilities.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,892,499
Exercised Options: $58,892,499
Current Obligation: $58,892,499
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA830717D0017
IDV Type: IDC
Timeline
Start Date: 2017-12-08
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-04-24
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