DoD's $28.7M DASR/MSSR Radar Sustainment Contract Awarded to Raytheon
Contract Overview
Contract Amount: $28,733,351 ($28.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-07-15
End Date: 2026-06-30
Contract Duration: 1,811 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: IT
Official Description: DIGITAL AIRPORT SURVEILLANCE RADAR (DASR) SUSTAINMENT, MONOPULSE SECONDARY SURVEILLANCE RADAR ANTENNAS (MSSR) PLOT EXTRACTOR REFRESH
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $28.7 million to RAYTHEON COMPANY for work described as: DIGITAL AIRPORT SURVEILLANCE RADAR (DASR) SUSTAINMENT, MONOPULSE SECONDARY SURVEILLANCE RADAR ANTENNAS (MSSR) PLOT EXTRACTOR REFRESH Key points: 1. Awarded to Raytheon Company, a major defense contractor. 2. Focuses on sustainment of critical airport surveillance radar systems. 3. No competition was cited, raising potential cost concerns. 4. The sector is IT and Defense, with significant government spending.
Value Assessment
Rating: questionable
The contract's Cost No Fee (CNF) structure with a $28.7M award and no stated profit suggests potential for overruns or lack of incentive for efficiency. Benchmarking is difficult without profit and fee details.
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 may lead to higher costs for taxpayers as there is no competitive pressure to offer the best price.
Taxpayer Impact: The lack of competition for this significant contract could result in higher taxpayer costs due to the absence of market forces driving down prices.
Public Impact
Ensures continued operation of vital air traffic control radar systems. Supports national airspace safety and efficiency. Potential for increased costs due to sole-source award. Relies on a single vendor for critical sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost No Fee structure
- Potential for sole-source price inflation
Positive Signals
- Sustains critical infrastructure
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically related to IT and navigation systems. Spending in this area is substantial, with a focus on maintaining aging but critical infrastructure.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved in this specific award, which is common for large sole-source defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of Defense should monitor this contract closely for any inefficiencies.
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
- Sole-source award limits competition.
- Cost No Fee structure may reduce contractor incentive for efficiency.
- Potential for price inflation due to lack of competitive bidding.
- Reliance on a single large contractor for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to RAYTHEON COMPANY. DIGITAL AIRPORT SURVEILLANCE RADAR (DASR) SUSTAINMENT, MONOPULSE SECONDARY SURVEILLANCE RADAR ANTENNAS (MSSR) PLOT EXTRACTOR REFRESH
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 $28.7 million.
What is the period of performance?
Start: 2021-07-15. End: 2026-06-30.
What is the justification for the sole-source award of the DASR/MSSR sustainment contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems that only one vendor can provide. Without specific documentation, it's difficult to ascertain the exact reason, but it's often related to specialized knowledge or existing infrastructure integration.
How does the Cost No Fee (CNF) structure impact the risk and value for the government?
A CNF contract shifts most of the financial risk to the contractor, as they do not receive a fee or profit. While this can protect the government from cost overruns, it may also disincentivize the contractor from seeking efficiencies or innovating to reduce costs, potentially impacting long-term value and leading to higher baseline costs in future contracts.
What is the long-term strategy for ensuring competitive sourcing for future radar sustainment needs?
The long-term strategy should involve market research to identify potential competitors and foster competition for future sustainment contracts. This could include breaking down the requirement into smaller lots, encouraging technology refresh cycles that allow new entrants, or developing in-house capabilities to reduce reliance on sole-source providers.
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: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $28,733,351
Exercised Options: $28,733,351
Current Obligation: $28,733,351
Actual Outlays: $125,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873020D0039
IDV Type: IDC
Timeline
Start Date: 2021-07-15
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-06
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)