DoD Awards Raytheon $54.3M for GEOINT Infrastructure Field Support, No Competition

Contract Overview

Contract Amount: $54,302,159 ($54.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-03-30

End Date: 2026-03-29

Contract Duration: 364 days

Daily Burn Rate: $149.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.3 million to RAYTHEON COMPANY for work described as: DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES Key points: 1. Significant contract value of $54.3M for specialized geospatial intelligence support. 2. Sole-source award to Raytheon Company indicates limited market options or strategic choice. 3. Potential risk associated with lack of competition impacting price and innovation. 4. Focus on engineering services within the defense sector, specifically Air Force. 5. Contract duration of 364 days suggests a short-term or bridge requirement.

Value Assessment

Rating: questionable

The contract value of $54.3M for 364 days of support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized engineering services.

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. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these critical GEOINT support services.

Public Impact

Ensures continued support for critical geospatial intelligence infrastructure, vital for national security. Potential for taxpayers to overpay due to the absence of competitive bidding. Highlights reliance on a single contractor for specialized defense support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value for short duration

Positive Signals

Ensures continuity of essential GEOINT support
Experienced contractor (Raytheon)

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) within the defense sector. Spending benchmarks for similar specialized intelligence infrastructure support can vary widely based on scope and technology.

Small Business Impact

The award to Raytheon Company, a large defense contractor, does not indicate any direct benefit or set-aside for small businesses. Opportunities for small businesses may exist as subcontractors.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of the Air Force is responsible for monitoring this contract's execution and value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without competition.
Dependency on a single contractor for critical services.
Limited transparency into the procurement process.
Short contract duration may indicate a stopgap measure, raising questions about long-term strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.3 million to RAYTHEON COMPANY. DCGS GEOSPATIAL INTELLIGENCE (GEOINT) INFRASTRUCTURE FIELD SUPPORT SERVICES

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 $54.3 million.

What is the period of performance?

Start: 2025-03-30. End: 2026-03-29.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other qualified sources. The Department of Defense should have documented this justification. To ensure fair pricing, the agency should conduct thorough market research, negotiate aggressively, and potentially use independent cost estimates to validate Raytheon's proposed costs.

What are the risks associated with relying on a single provider for critical GEOINT infrastructure support?

The primary risks include potential price escalation over time, reduced innovation due to lack of competitive pressure, and vulnerability if the sole provider faces operational issues or decides to discontinue services. This dependency can also limit the government's flexibility in adapting to new technologies or changing requirements.

How does this contract contribute to the overall effectiveness of the Air Force's GEOINT capabilities?

This contract directly supports the operational readiness and effectiveness of the Air Force's geospatial intelligence infrastructure. By ensuring field support services are maintained, it allows for the continuous collection, analysis, and dissemination of critical intelligence data necessary for mission success and national security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 22260 PACIFIC BLVD, DULLES, VA, 20166

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: $90,688,618

Exercised Options: $90,688,618

Current Obligation: $54,302,159

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,082,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA852722D0002

IDV Type: IDC

Timeline