DoD awards Raytheon $16.6M for HC/MC-130J EO/IR system sustaining engineering
Contract Overview
Contract Amount: $16,636,064 ($16.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2025-09-28
Contract Duration: 1,459 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: HC/MC-130J AN/AAS-54 ELECTRO-OPTICAL/LNFRARED (EO/IR) SYSTEM SUSTAINING ENGINEERING SUPPORT.
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.6 million to RAYTHEON COMPANY for work described as: HC/MC-130J AN/AAS-54 ELECTRO-OPTICAL/LNFRARED (EO/IR) SYSTEM SUSTAINING ENGINEERING SUPPORT. Key points: 1. Contract awarded to Raytheon Company for critical aircraft sensor support. 2. Sustaining engineering is vital for maintaining operational readiness of the HC/MC-130J fleet. 3. The contract value is moderate, but the lack of competition raises concerns. 4. The sector is aerospace and defense, specifically focusing on avionics and sensor systems.
Value Assessment
Rating: questionable
The contract value of $16.6M for sustaining engineering over nearly four years appears reasonable for specialized aerospace components. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This approach limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this contract may result in higher costs for the Department of Defense, ultimately impacting taxpayer funds.
Public Impact
Ensures continued operational capability of the HC/MC-130J aircraft's electro-optical/infrared systems. Supports critical intelligence, surveillance, and reconnaissance (ISR) missions. Maintains the technological edge of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated costs
Positive Signals
- Essential system support
- Long-term contract duration
- Supports critical aircraft platform
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting avionics and sensor systems for military aircraft. Spending benchmarks for sustaining engineering on complex platforms can vary widely, but competitive procurement is generally preferred to ensure value.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved in this specific procurement, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight would focus on contract performance, adherence to cost controls, and justification for the sole-source award.
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
- Lack of competition
- Sole-source award
- Potential for cost overruns
- Limited transparency in pricing
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to RAYTHEON COMPANY. HC/MC-130J AN/AAS-54 ELECTRO-OPTICAL/LNFRARED (EO/IR) SYSTEM SUSTAINING ENGINEERING SUPPORT.
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 $16.6 million.
What is the period of performance?
Start: 2021-09-30. End: 2025-09-28.
What is the justification for the sole-source award of this sustaining engineering contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity with existing systems where only one vendor can provide the required support. Without specific documentation, it's presumed Raytheon possesses the necessary expertise and intellectual property for the HC/MC-130J EO/IR system.
What are the risks associated with a sole-source contract for sustaining engineering?
The primary risks of a sole-source contract include a lack of competitive pricing, potentially leading to overpayment. There's also a reduced incentive for the contractor to innovate or improve efficiency. Furthermore, it can create vendor lock-in and limit future sourcing options, potentially increasing long-term costs.
How does this contract contribute to the overall effectiveness of the HC/MC-130J aircraft?
This contract is crucial for the effectiveness of the HC/MC-130J aircraft by ensuring the continuous functionality and reliability of its electro-optical/infrared (EO/IR) sensor systems. These systems are vital for the aircraft's mission in intelligence, surveillance, reconnaissance, and combat operations, directly impacting its ability to perform its intended roles.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA850921R0020
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071
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: $16,821,221
Exercised Options: $16,821,221
Current Obligation: $16,636,064
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $97,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-30
Current End Date: 2025-09-28
Potential End Date: 2025-09-28 00:00:00
Last Modified: 2025-09-24
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