Air Force awards $76M for F-15EX Eagle Vision radar systems to Raytheon Company

Contract Overview

Contract Amount: $76,009,281 ($76.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2027-05-31

Contract Duration: 1,348 days

Daily Burn Rate: $56.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-15EX EAGLE VISION LOT 5 RADARS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $76.0 million to RAYTHEON COMPANY for work described as: F-15EX EAGLE VISION LOT 5 RADARS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant investment in advanced radar technology for fighter aircraft. 3. Long-term contract duration suggests ongoing need and potential for follow-on work. 4. Focus on a single, established defense contractor raises questions about market alternatives. 5. Geographic concentration in California for contract performance. 6. Fixed-price contract type shifts some performance risk to the contractor.

Value Assessment

Rating: fair

The contract value of $76 million for F-15EX radar systems appears to be a significant investment. Without specific benchmarks for this particular system or comparable sole-source awards, it is difficult to definitively assess value for money. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits the government's ability to leverage market forces for potentially lower pricing. Further analysis would require benchmarking against similar radar systems or previous procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Raytheon Company, was solicited. This approach is typically used when a unique capability is required, or when only one source can provide the necessary goods or services. The lack of competition means the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors. The justification for this sole-source award would need to be examined to understand why other potential suppliers were not considered.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's ability to achieve cost savings through market dynamics.

Public Impact

The primary beneficiaries are the U.S. Air Force, which will receive advanced radar systems to enhance the capabilities of its F-15EX fighter fleet. The contract will deliver critical search, detection, navigation, and guidance systems for advanced aerial operations. Performance is concentrated in California, potentially impacting the local aerospace and defense workforce. The F-15EX program supports the modernization of U.S. air combat capabilities, contributing to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-sourcing could mask opportunities for broader competition.
Long contract duration may indicate a lack of readily available alternative solutions, potentially locking the government into a specific vendor.

Positive Signals

Fixed-price contract type provides cost predictability for the government.
Award to an established contractor with likely experience in defense systems suggests a lower risk of technical failure.
The contract supports the modernization of a key Air Force platform, enhancing national defense capabilities.

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 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry. The market for advanced military radar systems is often dominated by a few large, specialized contractors due to the complexity and security requirements. Spending in this sub-sector is driven by military modernization programs and the need for cutting-edge technology to maintain air superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Raytheon Company, is a large defense prime. While large primes often engage small businesses as subcontractors, the absence of a specific set-aside suggests that opportunities for direct contracting with small businesses for this particular award may be limited. The subcontracting plan, if any, would need to be reviewed to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of the Air Force's contracting and program management offices. The Defense Contract Management Agency (DCMA) may also provide oversight for contract performance and quality assurance. Transparency regarding the sole-source justification and any performance metrics would be key to assessing accountability. Inspector General investigations could be initiated if any fraud, waste, or abuse is suspected.

Related Government Programs

F-15EX Program
Advanced Radar Systems Procurement
Air Force Avionics Modernization
Defense Contractor Services
Sole-Source Defense Contracts

Risk Flags

Sole-source award without clear justification
Potential for overpricing due to lack of competition
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.0 million to RAYTHEON COMPANY. F-15EX EAGLE VISION LOT 5 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 $76.0 million.

What is the period of performance?

Start: 2023-09-21. End: 2027-05-31.

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 established history of providing advanced sensor and avionics systems for military aircraft, including the F-15 program. They are a primary supplier for many critical components on various fighter jets. Their experience with radar systems is extensive, encompassing development and production of airborne radar for air-to-air and air-to-ground targeting, electronic warfare, and situational awareness. For the F-15EX specifically, Raytheon has been involved in providing key technologies. Their track record suggests a high level of technical expertise and program execution capability within this domain, though specific performance metrics on past contracts would provide a more granular assessment.

How does the $76 million award compare to previous F-15 radar procurements or similar sole-source defense contracts?

Benchmarking this $76 million award requires access to historical data on F-15 radar procurements and comparable sole-source defense contracts for similar systems. Without specific data points, a direct comparison is challenging. However, the value suggests a significant investment in advanced technology, likely reflecting the complexity and capabilities of modern radar systems. Sole-source awards, by their nature, often do not offer the same price discovery as competitive bids. Therefore, comparing this value to competitively bid radar systems would likely show a difference, with the sole-source award potentially being higher due to the lack of market pressure. Further analysis would involve examining contract award databases for similar systems and contractors.

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 potential for inflated pricing due to the absence of competitive bidding. Taxpayers may be paying more than they would if multiple vendors had competed for the contract. Another risk is the potential for complacency from the sole-source provider, as there is less external pressure to innovate or improve efficiency compared to a competitive environment. Furthermore, reliance on a single supplier can create supply chain vulnerabilities and limit the government's flexibility if issues arise with the contractor or the technology. The justification for the sole-source award itself carries a risk if it was not adequately substantiated, potentially indicating missed opportunities for better value.

What is the expected impact of these radar systems on the F-15EX program's effectiveness and the Air Force's mission capabilities?

The F-15EX Eagle Vision Lot 5 radars are expected to significantly enhance the effectiveness of the F-15EX program and the Air Force's overall mission capabilities. Advanced radar systems are crucial for modern air combat, providing superior situational awareness, target detection, tracking, and engagement capabilities in complex electromagnetic environments. These systems enable pilots to identify threats and targets at longer ranges, make faster decisions, and employ weapons more effectively. For the F-15EX, which is designed as a multi-role fighter capable of carrying a large payload, advanced radar is essential for its air superiority and deep strike missions. Improved radar performance directly translates to enhanced survivability for the aircraft and increased lethality against adversaries.

Are there any historical spending patterns or trends related to F-15 radar procurements that this contract aligns with or deviates from?

Historical spending on F-15 radar systems has generally followed trends of technological advancement and platform modernization. Early F-15 variants were equipped with radar systems that were state-of-the-art for their time but have since been upgraded or replaced. Procurements have often involved upgrades to existing systems or the integration of new radar technologies as the aircraft platform evolved. This $76 million award for the F-15EX likely represents the latest iteration of radar technology for this specific variant, aligning with the trend of continuous modernization. Sole-source awards for specific upgrades or unique system integrations have been common in defense procurement, especially when dealing with proprietary technologies or highly specialized requirements, which may explain the current award's nature.

What are the implications of the fixed-price contract type for cost control and risk management on this award?

The fixed-price contract type (FIRM FIXED PRICE) for this award has significant implications for cost control and risk management. From a cost control perspective, it provides the U.S. Air Force with a high degree of certainty regarding the total expenditure for the delivered radar systems. The contractor, Raytheon Company, assumes the primary responsibility for managing costs and absorbing any overruns. This shifts the performance risk from the government to the contractor. If Raytheon incurs higher-than-expected costs to produce these radars, their profit margin will be reduced, but the government's payment will not increase beyond the agreed-upon price. Conversely, if Raytheon manages costs efficiently and completes the work for less than anticipated, their profit will be higher. This structure incentivizes the contractor to control costs and deliver efficiently.

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: $76,009,281

Exercised Options: $76,009,281

Current Obligation: $76,009,281

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $4,560,968

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