DoD awards Raytheon $59M for Advanced Countermeasure Electronic Systems (ACES) LRUs and Spares
Contract Overview
Contract Amount: $59,129,385 ($59.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2013-12-23
End Date: 2017-03-31
Contract Duration: 1,194 days
Daily Burn Rate: $49.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADVANCED COUNTERMEASURE ELECTRONIC SYSTEMS (ACES) LRUS AND SPARES FOR MOROCCO, EGYPT AND IRAQ
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $59.1 million to RAYTHEON COMPANY for work described as: ADVANCED COUNTERMEASURE ELECTRONIC SYSTEMS (ACES) LRUS AND SPARES FOR MOROCCO, EGYPT AND IRAQ Key points: 1. Contract awarded to Raytheon Company for ACES LRUs and spares. 2. Spending is for Morocco, Egypt, and Iraq, indicating international defense support. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. No small business participation is indicated, suggesting a focus on prime contractor capabilities.
Value Assessment
Rating: fair
The contract value of $59.1M is for a definitive contract with a duration of 1194 days. Without specific unit costs or comparison data for similar systems, a precise value assessment is difficult. However, the fixed-price nature suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario. This limits price discovery and potentially increases costs compared to a fully competitive environment.
Taxpayer Impact: Taxpayer funds are used for foreign military sales, supporting allied nations' defense capabilities. The lack of competition may lead to higher costs than if multiple vendors were involved.
Public Impact
Supports U.S. foreign military sales initiatives by providing advanced electronic countermeasures to allied nations. Enhances the defense capabilities of Morocco, Egypt, and Iraq through critical system upgrades. The contract involves specialized electronic warfare systems, crucial for modern air and naval defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for higher costs due to sole-source award
- Limited transparency on specific system pricing
Positive Signals
- Firm Fixed Price contract type
- Supports key international allies
- Procurement of advanced defense technology
Sector Analysis
This contract falls within the Defense sector, specifically related to aerospace and defense electronics manufacturing. Spending benchmarks for similar specialized electronic systems can vary widely based on technological complexity and quantity.
Small Business Impact
The data indicates no small business participation (sb: false). This suggests the contract was awarded directly to a large prime contractor, Raytheon Company, likely due to specialized requirements or existing program relationships.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The definitive contract award and firm fixed price structure provide a degree of accountability, but the lack of competition warrants scrutiny.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition award
- Potential for cost overruns due to lack of competitive pressure
- Lack of transparency on specific system pricing
- No small business participation noted
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.1 million to RAYTHEON COMPANY. ADVANCED COUNTERMEASURE ELECTRONIC SYSTEMS (ACES) LRUS AND SPARES FOR MOROCCO, EGYPT AND IRAQ
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $59.1 million.
What is the period of performance?
Start: 2013-12-23. End: 2017-03-31.
What is the specific justification for the limited competition award for these ACES LRUs and spares?
The justification for limited competition is not explicitly provided in the data. Typically, such awards occur when only one source can provide the required goods or services due to proprietary technology, unique capabilities, or urgent needs. Further investigation into the contract file would be necessary to determine the precise rationale.
How does the unit cost of these ACES LRUs compare to similar systems procured through competitive bidding?
Without access to specific unit cost data and benchmarks for comparable systems procured competitively, a direct comparison is not possible. The limited competition nature of this award suggests that the unit costs may be higher than if a competitive bidding process had been employed, as market pressures are reduced.
What is the long-term strategic value of supplying these ACES systems to Morocco, Egypt, and Iraq?
Supplying ACES systems to these nations enhances their air and naval defense capabilities, contributing to regional stability and U.S. foreign policy objectives. It strengthens partnerships and interoperability with key allies, potentially improving collective security against shared threats and maintaining U.S. influence in strategic regions.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6380 HOLLISTER AVE, GOLETA, CA, 93117
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: $59,129,385
Exercised Options: $59,129,385
Current Obligation: $59,129,385
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-12-23
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2018-02-09
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)