Air Force awards $114.7M for F-15EX Eagle Vision Lot 4 Radars to Raytheon Company

Contract Overview

Contract Amount: $114,699,582 ($114.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-11-18

End Date: 2026-09-30

Contract Duration: 1,412 days

Daily Burn Rate: $81.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-15EX EAGLE VISION LOT 4 RADARS

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $114.7 million to RAYTHEON COMPANY for work described as: F-15EX EAGLE VISION LOT 4 RADARS Key points: 1. The contract value represents a significant investment in advanced radar systems for the F-15EX platform. 2. Sole-source award suggests limited market alternatives or specific technological requirements. 3. The duration of the contract (over 3 years) indicates a long-term need for these systems. 4. Fixed-price contract type aims to control costs, but requires careful monitoring for potential overruns. 5. The award is for radar systems, a critical component for the F-15EX's combat effectiveness. 6. Geographic location in California may imply specific manufacturing or integration facilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific radar system is challenging without comparable contract data for the F-15EX's Lot 4. However, the total contract value of over $114 million for advanced avionics suggests a substantial investment. The firm fixed-price nature of the contract is a positive indicator for cost control, assuming the scope is well-defined. Further analysis would require comparing the unit cost of these radars to similar systems on other platforms or previous generations of F-15 radar.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This approach is typically used when a product or service is unique, proprietary, or when there is a compelling justification for not seeking competition, such as urgent needs or compatibility with existing systems. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: A sole-source award limits the government's ability to negotiate the best possible price, potentially leading to higher costs for taxpayers compared to a competitively bid contract.

Public Impact

The primary beneficiaries are the U.S. Air Force and its F-15EX fighter jet program, enhancing operational capabilities. The contract delivers advanced radar systems essential for the F-15EX's mission effectiveness, including targeting and situational awareness. The geographic impact is primarily centered in California, where the contractor's facilities are located, potentially supporting local jobs and the aerospace ecosystem. Workforce implications include specialized engineering, manufacturing, and technical roles required for the production and integration of these complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-sourcing requires scrutiny.
Potential for cost overruns if scope is not tightly managed under fixed-price contract.
Dependence on a single supplier for critical F-15EX components.

Positive Signals

Firm fixed-price contract type provides cost certainty if scope is well-defined.
Award to an established defense contractor with likely experience in radar systems.
Supports modernization of a key fighter aircraft platform (F-15EX).

Sector Analysis

The aerospace and defense sector is characterized by high R&D costs, long product development cycles, and significant government procurement. This contract falls within the advanced avionics and defense electronics sub-sector. The market for fighter jet radar systems is highly specialized, often dominated by a few large prime contractors and their subcontractors. The F-15EX program represents a significant investment in maintaining and modernizing the U.S. Air Force's tactical fighter fleet, and radar systems are a critical, high-value component of such platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, it is unlikely that significant subcontracting opportunities will be directed towards small businesses unless specified by the prime. The absence of small business participation goals in this specific award may limit the direct economic benefit to the small business defense supply chain for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature of the contract implies that cost oversight is less critical than performance and schedule oversight. Transparency regarding the justification for the sole-source award and the contractor's performance against technical specifications and delivery schedules would be key areas for oversight. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

F-15EX Program
Advanced Avionics Systems
Defense Radar Manufacturing
Air Force Procurement
Tactical Fighter Aircraft Modernization

Risk Flags

Sole-source award
Potential for cost overruns if scope is not well-defined
Limited transparency on competition justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.7 million to RAYTHEON COMPANY. F-15EX EAGLE VISION LOT 4 RADARS

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 $114.7 million.

What is the period of performance?

Start: 2022-11-18. End: 2026-09-30.

What is Raytheon Company's track record with the F-15 program and similar radar systems?

Raytheon Company, now part of RTX, has a long and extensive history of supplying advanced radar systems and avionics to various military platforms, including the F-15 family of aircraft. They have been a key supplier for previous F-15 upgrades and variants, developing technologies like the APG-63 and APG-82 AESA radars. Their experience with the F-15 platform provides a strong foundation for developing and delivering the Lot 4 radars for the F-15EX. The company's track record generally indicates a high level of technical capability and program execution within the defense sector, though specific performance on individual contracts can vary and is subject to government oversight and reporting.

How does the value of this contract compare to previous radar procurements for the F-15 or similar aircraft?

Direct comparison of this $114.7 million contract for F-15EX Lot 4 radars to previous F-15 radar procurements is difficult without specific contract details and inflation adjustments. However, advanced radar systems, particularly Active Electronically Scanned Array (AESA) radars like those likely incorporated into the F-15EX's Vision system, represent a significant technological leap and cost increase over older radar technologies. The F-15EX is a new variant, and its specific avionics suite, including the Lot 4 radars, is designed for enhanced capabilities. Therefore, this contract value should be viewed in the context of modern, high-performance defense electronics rather than a direct year-over-year comparison to older systems, which would likely be lower in nominal terms and significantly lower in capability.

What are the primary risks associated with this sole-source contract for the F-15EX radar systems?

The primary risk associated with this sole-source contract is the lack of competitive pressure, which can lead to suboptimal pricing for the government and taxpayers. Without multiple bidders, there is less incentive for the contractor to offer the lowest possible price or to innovate aggressively to win the contract. Another risk is vendor lock-in; the government becomes dependent on Raytheon for these specific radar systems, potentially limiting future flexibility in upgrades or alternative sourcing. Furthermore, sole-source awards can sometimes indicate a lack of readily available alternatives or a complex, specialized requirement that may carry inherent technical risks in development and integration, although Raytheon's experience mitigates some of this.

How effective is the firm fixed-price contract type in managing costs for advanced defense systems like these radars?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For advanced defense systems like radars, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage their own costs efficiently. However, if the requirements are not fully understood at the outset or if unforeseen technical challenges arise, the contractor may seek change orders, which can increase the total contract price. The effectiveness of FFP in this case depends heavily on the clarity of the technical specifications and the government's ability to manage scope creep throughout the contract's duration.

What are the historical spending patterns for radar systems within the Department of Defense, and how does this contract fit?

The Department of Defense (DoD) consistently allocates substantial portions of its budget to advanced avionics and sensor systems, including radar, for its various aircraft platforms. Historical spending patterns show significant investments in radar modernization programs across fighter, bomber, and surveillance aircraft. Contracts for advanced radar systems, especially AESA technology, typically run into tens or hundreds of millions of dollars per platform or lot. This $114.7 million award for F-15EX Lot 4 radars aligns with these historical patterns, reflecting the high cost and critical importance of state-of-the-art radar technology for maintaining air superiority and enhancing combat effectiveness in modern air forces.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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

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: $114,699,582

Exercised Options: $114,699,582

Current Obligation: $114,699,582

Subaward Activity

Number of Subawards: 191

Total Subaward Amount: $173,103,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863421D2707

IDV Type: IDC

Timeline