Raytheon Company awarded $69.4M for Silent Knight Radar Systems by U.S. Special Operations Command

Contract Overview

Contract Amount: $69,436,551 ($69.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-06-28

End Date: 2022-06-30

Contract Duration: 1,463 days

Daily Burn Rate: $47.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SILENT KNIGHT RADAR (SKR) SYSTEMS

Place of Performance

Location: FOREST, SCOTT County, MISSISSIPPI, 39074

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $69.4 million to RAYTHEON COMPANY for work described as: SILENT KNIGHT RADAR (SKR) SYSTEMS Key points: 1. Contract awarded as a sole-source delivery order, raising questions about potential price efficiencies. 2. The contract spans over four years, indicating a long-term need for these specialized radar systems. 3. The primary contractor, Raytheon Company, is a major defense industrial base participant. 4. The absence of competition suggests a lack of alternative providers or a strategic decision to use an incumbent. 5. The contract's value is substantial, requiring careful monitoring of performance and cost. 6. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code points to a highly specialized technology area.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without comparable bids. The firm-fixed-price structure provides some cost certainty for the government. However, the lack of competition means there's no direct market comparison to assess if the pricing is optimal. The total award amount of $69.4 million over four years suggests a significant investment in specialized radar technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of multiple bidders limits the government's ability to leverage competitive pressures to drive down costs and ensure the best possible pricing. It suggests a reliance on a specific vendor's proprietary technology or unique capabilities.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding. Without competing the requirement, there is a risk that the price paid is higher than it would have been in a competitive environment.

Public Impact

The U.S. Special Operations Command benefits from the acquisition of advanced Silent Knight Radar (SKR) systems, crucial for its operational capabilities. These systems likely enhance intelligence, surveillance, and reconnaissance (ISR) missions for special operations forces. The geographic impact is primarily national, supporting SOCOM's global mission requirements. The contract supports high-tech manufacturing jobs within the defense sector, likely concentrated where Raytheon has facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition raises concerns about market responsiveness and potential vendor lock-in.
The specialized nature of the technology could create barriers to entry for potential competitors.
Long contract duration requires sustained oversight to ensure continued value and performance.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a major defense contractor like Raytheon suggests a focus on proven capabilities.
The contract addresses a critical need for specialized radar systems within U.S. Special Operations Command.

Sector Analysis

The Silent Knight Radar (SKR) Systems contract falls within the broader aerospace and defense industry, specifically the segment focused on electronic warfare and sensor systems. This sector is characterized by high R&D investment, long product development cycles, and significant government procurement. The market for advanced radar systems is often dominated by a few large, established players due to the complexity and proprietary nature of the technology. Comparable spending benchmarks are difficult to establish for highly specialized, sole-source systems like SKR, but overall defense spending on sensor and surveillance technology runs into billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Raytheon Company, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contractors often engage small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a sole-source award, scrutiny on performance metrics, delivery schedules, and adherence to the firm-fixed-price terms is crucial. Transparency is limited by the non-competitive nature of the award. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Advanced Radar Systems Procurement
Special Operations Forces Equipment
Defense Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Electronic Warfare Systems
Aeronautical and Nautical Instrument Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.4 million to RAYTHEON COMPANY. SILENT KNIGHT RADAR (SKR) SYSTEMS

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $69.4 million.

What is the period of performance?

Start: 2018-06-28. End: 2022-06-30.

What is the specific capability enhancement provided by the Silent Knight Radar (SKR) systems to U.S. Special Operations Command?

The Silent Knight Radar (SKR) systems are designed to provide advanced search, detection, and navigation capabilities crucial for U.S. Special Operations Command (SOCOM) missions. While specific operational details are often classified, these systems likely enhance situational awareness, target acquisition, and operational effectiveness in complex environments. They may offer features such as all-weather performance, reduced probability of intercept, and integration with other SOCOM platforms. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code suggests a sophisticated sensor suite that aids in identifying and tracking targets, navigating challenging terrains, and supporting mission objectives where traditional radar might be insufficient or detectable.

How does the sole-source nature of this contract impact potential cost savings for the government compared to a competitive award?

A sole-source award inherently limits the government's ability to achieve cost savings through competitive bidding. In a competitive environment, multiple vendors would vie for the contract, driving prices down as they seek to win the award. Without this pressure, the government relies on negotiation and the contractor's willingness to offer fair pricing. While the firm-fixed-price (FFP) structure caps the government's liability, it does not guarantee the lowest possible price. The absence of competition means there's no direct market benchmark to assess if the negotiated price is truly optimal, potentially leading to higher costs for taxpayers than if the requirement had been competed.

What are the primary risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($69.4 million) and duration (over four years) include potential cost overruns if not managed tightly, vendor lock-in, and a lack of incentive for the contractor to innovate or improve efficiency beyond contractual requirements. There's also the risk of reduced transparency and accountability compared to a competed contract. If the sole-source provider experiences financial difficulties or operational issues, it could significantly disrupt the supply of critical systems to SOCOM. Furthermore, without competition, there's a diminished opportunity to explore alternative technologies or solutions that might emerge in the market.

What is Raytheon Company's track record in providing similar radar systems or defense electronics to the U.S. military?

Raytheon Company, now part of RTX, has a long and extensive track record in developing and producing advanced radar systems, electronic warfare systems, and other defense electronics for the U.S. military and allied nations. They are a major prime contractor on numerous complex defense programs, including fighter jet radar (e.g., APG-73, APG-79), missile defense systems, and surveillance platforms. Their experience spans decades and encompasses a wide range of technologies and platforms. Given their established position in the defense industrial base and their history with complex systems, Raytheon is generally considered a capable provider for specialized requirements like the Silent Knight Radar (SKR) systems.

How does the $69.4 million award for Silent Knight Radar Systems compare to historical spending on similar technologies within the Department of Defense?

Comparing the $69.4 million award for Silent Knight Radar (SKR) Systems requires context regarding the specific capabilities and scale of the systems. Advanced radar and sensor systems for specialized applications, particularly for elite units like U.S. Special Operations Command, can command significant investment due to their technological sophistication and limited production runs. While specific historical data for SKR is not provided, the Department of Defense invests billions annually in intelligence, surveillance, and reconnaissance (ISR) platforms and technologies. Contracts for advanced radar systems can range from tens of millions to hundreds of millions of dollars, depending on the system's complexity, quantity, and the duration of the contract. This $69.4 million award appears to be a substantial, but not unprecedented, investment for specialized, high-capability radar systems within the defense sector.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9222216R0005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75070

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: $69,436,551

Exercised Options: $69,436,551

Current Obligation: $69,436,551

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $4,907,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9222216D0033

IDV Type: IDC

Timeline