DoD Awards Raytheon $53M for Advanced High Frequency Communications Equipment
Contract Overview
Contract Amount: $52,964,283 ($53.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2027-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $29.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADVANCED EXTREMELY HIGH FREQUENCY
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $53.0 million to RAYTHEON COMPANY for work described as: ADVANCED EXTREMELY HIGH FREQUENCY Key points: 1. Significant award to a major defense contractor, Raytheon Company. 2. Focus on advanced communications equipment suggests critical operational needs. 3. Sole-source award raises questions about price discovery and competition. 4. Long contract duration (2027) indicates sustained requirement.
Value Assessment
Rating: questionable
The contract is a firm-fixed-price delivery order, which typically offers price certainty. However, without competition, it's difficult to benchmark the pricing against market rates or alternative solutions to determine true value for money.
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 result in higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The lack of competition for this $53M contract means taxpayers may not be receiving the best possible price for this advanced communications equipment.
Public Impact
Ensures critical communication capabilities for the Air Force. Supports advanced technology development in the defense sector. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long-term contract duration
Positive Signals
- Procurement of advanced technology
- Supports critical defense mission
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector. Spending in this area is crucial for national security, but competitive bidding is vital to ensure cost-effectiveness.
Small Business Impact
The awardee is Raytheon Company, a large business. There is no indication that small businesses were involved in this specific sole-source contract, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair pricing and that the necessity for a sole-source justification is periodically re-evaluated.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited visibility into alternative solutions.
- Dependency on a single supplier.
- No small business participation noted.
Tags
other-communications-equipment-manufactu, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.0 million to RAYTHEON COMPANY. ADVANCED EXTREMELY HIGH FREQUENCY
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 $53.0 million.
What is the period of performance?
Start: 2022-09-29. End: 2027-09-30.
What is the justification for this sole-source award, and has it been adequately documented to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific documentation, it's impossible to confirm adequacy. However, the absence of competition inherently raises concerns about price discovery, making robust justification and oversight critical to ensure fair and reasonable pricing for the taxpayer.
What are the specific risks associated with relying on a single source for advanced high-frequency communications equipment over an 18-month period?
Risks include potential price escalation without competitive pressure, limited access to technological advancements from other vendors, and supply chain vulnerabilities tied to a single provider. If Raytheon faces production issues or significant cost increases, the Air Force has limited recourse. This dependence could also stifle innovation by excluding other potential suppliers from contributing to the technology's evolution.
How does the performance of this advanced high-frequency communication equipment compare to industry benchmarks, and is the current pricing aligned with expected performance metrics?
Benchmarking is challenging without competitive data. Performance metrics would need to be evaluated against technical specifications and operational requirements. If the equipment meets or exceeds all critical performance parameters, the fixed price might be considered reasonable, assuming the sole-source justification is sound. However, without comparative pricing from other manufacturers, a definitive assessment of value for money is difficult.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: 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: $52,964,283
Exercised Options: $52,964,283
Current Obligation: $52,964,283
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873521D0001
IDV Type: IDC
Timeline
Start Date: 2022-09-29
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-11-26
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