DoD Awards Raytheon $1.29B for Qatar Early Warning Radar Construction and Support
Contract Overview
Contract Amount: $1,293,641,358 ($1.3B)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2017-02-24
End Date: 2027-12-31
Contract Duration: 3,962 days
Daily Burn Rate: $326.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: QATAR EARLY WARNING RADAR- CONSTRUCTION OF RADAR AND SUPPORT BUILDINGS
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $1.29 billion to RAYTHEON COMPANY for work described as: QATAR EARLY WARNING RADAR- CONSTRUCTION OF RADAR AND SUPPORT BUILDINGS Key points: 1. Significant investment in critical defense infrastructure for early warning capabilities. 2. Sole-source award to Raytheon Company raises questions about price discovery and competition. 3. Long-term contract duration (2017-2027) suggests ongoing support and potential for cost overruns. 4. Focus on radar and support buildings indicates a comprehensive approach to the system's deployment.
Value Assessment
Rating: questionable
The contract value of $1.29 billion is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value for money is difficult, especially given the sole-source nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for better pricing and potentially leads to higher costs.
Taxpayer Impact: The sole-source award may result in taxpayers paying a premium for the radar system and associated construction due to the absence of competitive bidding.
Public Impact
Enhances national security by providing advanced early warning radar capabilities. Supports U.S. military operations and strategic positioning in the Middle East. Potential for job creation within Raytheon and its subcontractors. Long-term commitment of funds for defense infrastructure development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration increases risk of cost escalation.
- Lack of transparency in pricing due to sole-source nature.
Positive Signals
- Provides critical early warning radar capabilities.
- Strategic investment in regional defense infrastructure.
- Firm Fixed Price contract provides some cost certainty.
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is often characterized by high R&D costs and specialized manufacturing, with significant government investment in advanced defense technologies.
Small Business Impact
The data indicates this is a large prime contract awarded to Raytheon Company. There is no specific information provided regarding subcontracting opportunities for small businesses, which is a common concern with large sole-source defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Air Force should actively monitor contract performance and costs throughout its duration.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration increases risk of scope creep and cost overruns.
- Potential for vendor lock-in due to specialized technology.
- Limited transparency in pricing and performance metrics.
- Geopolitical risks associated with operating in Qatar.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.29 billion to RAYTHEON COMPANY. QATAR EARLY WARNING RADAR- CONSTRUCTION OF RADAR AND SUPPORT BUILDINGS
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 $1.29 billion.
What is the period of performance?
Start: 2017-02-24. End: 2027-12-31.
What specific factors justified the sole-source award to Raytheon, and were alternatives thoroughly explored?
Sole-source awards are typically justified by unique capabilities, proprietary technology, or the absence of viable alternatives. For this contract, the justification likely stems from Raytheon's specific expertise or existing systems integration capabilities for early warning radar. A thorough review of the justification documentation is needed to confirm that all reasonable competitive avenues were explored and deemed unsuitable.
How will the government ensure cost-effectiveness and prevent overruns given the long-term, sole-source nature of the contract?
Effective cost control will rely on robust contract management, including detailed performance metrics, regular cost reviews, and potentially incorporating incentive clauses for cost savings. The government should also conduct independent cost analyses and benchmark against similar projects where possible to ensure the pricing remains fair throughout the contract's life.
What is the anticipated operational impact and strategic benefit of this early warning radar system for U.S. interests in Qatar?
The early warning radar system is expected to significantly enhance situational awareness and provide critical intelligence on potential aerial threats in the region. This strengthens U.S. and allied defense posture, improves response times to emerging threats, and supports broader diplomatic and security objectives in the Middle East.
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
Parent Company: Rockwell Collins Australia PTY Limited
Address: 225 PRESIDENTIAL WAY, WOBURN, MA, 01801
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: $1,308,172,186
Exercised Options: $1,308,172,186
Current Obligation: $1,293,641,358
Subaward Activity
Number of Subawards: 3154
Total Subaward Amount: $3,880,737,468
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-02-24
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-06-30
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