DoD Awards Raytheon $42.5M for Support Services, Lacking Competition

Contract Overview

Contract Amount: $42,517,442 ($42.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-03-14

End Date: 2025-08-15

Contract Duration: 519 days

Daily Burn Rate: $81.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BIG SAFARI

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to RAYTHEON COMPANY for work described as: BIG SAFARI Key points: 1. Significant contract value of $42.5 million awarded to a major defense contractor. 2. Lack of competition raises concerns about potential overpricing and reduced value. 3. The contract is for support services, a broad category that requires clear performance metrics. 4. Awarded to Raytheon Company by the Department of the Air Force, highlighting a key player in defense contracting.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $42.5 million contract means taxpayers may be paying more than necessary for these support services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific support services provided are not detailed, making it hard to assess their necessity and impact. Reliance on a single contractor for essential support services could create long-term dependencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Broad service description

Positive Signals

Award to established contractor
Clear contract duration

Sector Analysis

The Department of Defense frequently awards large contracts for support services. Benchmarks for 'All Other Support Services' (NAICS 561990) vary widely, but competitive awards typically yield better value.

Small Business Impact

This contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved in subcontracting opportunities for this specific award.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The cost-plus fixed fee structure necessitates robust monitoring to ensure costs are reasonable and fixed fees are justified.

Related Government Programs

All Other Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Limited transparency on service scope
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to RAYTHEON COMPANY. BIG SAFARI

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 $42.5 million.

What is the period of performance?

Start: 2024-03-14. End: 2025-08-15.

What specific support services are being procured under this contract, and how do they align with the Air Force's mission requirements?

The contract falls under NAICS code 561990, 'All Other Support Services.' Without further details, it's unclear if these services are critical operational support, administrative functions, or something else. A clear understanding of the service scope is essential to evaluate its necessity and ensure it directly contributes to the Air Force's strategic objectives and operational readiness.

What is the justification for awarding this $42.5 million contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is critical, especially for a contract of this magnitude. Typically, this requires demonstrating that only one source can fulfill the requirement due to unique capabilities or urgent needs. The government should have conducted a price analysis using historical data, commercial pricing, or other methods to ensure the Cost Plus Fixed Fee terms are fair and reasonable, despite the lack of competition.

How will the performance of Raytheon Company be monitored to ensure effective delivery of services and control costs under the Cost Plus Fixed Fee structure?

Effective oversight is paramount for cost-plus contracts. The Department of the Air Force must implement rigorous performance monitoring, including regular reviews of incurred costs, progress reports, and adherence to the fixed fee milestones. Key performance indicators should be established to measure service delivery quality and efficiency, allowing for timely intervention if performance deviates from expectations or costs escalate unexpectedly.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: GUIDED MISSLES

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

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1151 E HERMANS RD, TUCSON, AZ, 85756

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: $42,517,442

Exercised Options: $42,517,442

Current Obligation: $42,517,442

Subaward Activity

Number of Subawards: 60

Total Subaward Amount: $18,257,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA862021G4024

IDV Type: BOA

Timeline