DoD's $19.7M Contract for Miscellaneous Electrical Equipment to Raytheon Company: A Deep Dive

Contract Overview

Contract Amount: $19,775,530 ($19.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2004-05-18

End Date: 2006-05-31

Contract Duration: 743 days

Daily Burn Rate: $26.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to RAYTHEON COMPANY for work described as: Key points: 1. Significant award to a major defense contractor, Raytheon Company. 2. Focus on 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' suggests specialized needs. 3. The contract's 'NOT COMPETED' status raises questions about price discovery and potential value. 4. Awarded by the Department of the Air Force, indicating a specific military application.

Value Assessment

Rating: questionable

The award amount of $19.7 million for 743 days (approximately $26,616 per day) lacks sufficient detail for a precise value assessment. Without comparable contract data or a breakdown of services/products, it's difficult to benchmark against industry standards or similar government procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was 'NOT COMPETED,' indicating a sole-source or limited competition procurement. This method can lead to higher prices due to a lack of competitive pressure, potentially impacting the government's ability to secure the best value.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the required electrical equipment and components, as market forces were not leveraged to drive down costs.

Public Impact

Taxpayers may be overpaying for specialized electrical components due to the absence of competitive bidding. The reliance on a single source for critical components could pose supply chain risks. Lack of transparency in the procurement process hinders public understanding of defense spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Award to established contractor
Specific component manufacturing

Sector Analysis

The 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector is broad, encompassing a wide range of specialized parts. Defense spending in this area often involves high-tech, custom-made components where competition can be limited due to proprietary technology or specific performance requirements.

Small Business Impact

This contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further scrutiny by oversight bodies to ensure the justification for sole-source procurement was robust and that fair pricing was achieved. Transparency in the justification process is key to accountability.

Related Government Programs

All Other Miscellaneous Electrical Equipment and Component Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement justification
Absence of small business participation
Dependency on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to RAYTHEON COMPANY. See the official description on USAspending.

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 $19.8 million.

What is the period of performance?

Start: 2004-05-18. End: 2006-05-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?

The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without access to the specific justification document, it's impossible to confirm if alternatives were thoroughly explored or if the chosen path was truly the only viable option to meet the Department of the Air Force's needs.

How does the per-unit cost of the electrical equipment compare to commercially available alternatives or similar government contracts?

Benchmarking the per-unit cost is challenging without detailed product specifications and quantities. The contract's 'COST PLUS FIXED FEE' structure, combined with a lack of competition, makes direct comparison difficult. A thorough review would require access to the cost breakdown and comparison with market rates for similar, non-proprietary components.

What is the long-term strategic impact of awarding such contracts without competition on the overall defense supply chain for electrical components?

Consistently awarding contracts without competition can stifle innovation and reduce the number of qualified suppliers in the long run. It may lead to increased reliance on a few large contractors, potentially creating vulnerabilities in the supply chain and limiting the government's flexibility to adapt to new technologies or market shifts.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 EAST EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline