DoD Awards Raytheon $278M for Silent Knight Radar Systems, Lacking Competition

Contract Overview

Contract Amount: $278,221,228 ($278.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2026-05-31

Contract Duration: 2,007 days

Daily Burn Rate: $138.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SILENT KNIGHT RADAR SYSTEMS

Place of Performance

Location: FOREST, SCOTT County, MISSISSIPPI, 39074

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $278.2 million to RAYTHEON COMPANY for work described as: SILENT KNIGHT RADAR SYSTEMS Key points: 1. Significant contract value of $278.2M awarded to Raytheon. 2. Sole-source award to Raytheon raises concerns about price discovery. 3. Contract duration spans over 5 years, impacting long-term value. 4. Sector focus on specialized radar systems for U.S. Special Operations Command.

Value Assessment

Rating: questionable

The contract's fixed-price nature provides some cost certainty. However, without competition, it's difficult to benchmark pricing against market alternatives, potentially leading to overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Raytheon was the only vendor considered. This significantly limits price discovery and competition, potentially inflating costs for taxpayers.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Special Operations Command relies on advanced radar technology for critical missions. Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially suboptimal pricing. Innovation may be stifled without the pressure of competitive market forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Definitive contract type
Firm fixed price contract

Sector Analysis

This contract falls within the specialized aerospace and defense sector, specifically focusing on advanced radar systems for military applications. Benchmarks for similar sole-source, high-technology defense contracts are difficult to establish due to their unique nature.

Small Business Impact

There is no indication of small business participation in this sole-source award to Raytheon. Opportunities for small businesses to contribute to this specialized radar system appear limited.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. Accountability for cost and performance is crucial given the lack of competitive pressure.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of price benchmark.
Long contract duration may reduce flexibility.
Limited transparency on price justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $278.2 million to RAYTHEON COMPANY. SILENT KNIGHT RADAR 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 $278.2 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-05-31.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without competitive bids, the government must rely on detailed cost proposals and market research to establish a fair and reasonable price. This process requires rigorous analysis to mitigate the risks associated with a lack of market validation.

What are the risks associated with a sole-source contract for advanced radar systems?

The primary risks include inflated costs due to the absence of competitive pressure, potential for vendor complacency leading to reduced innovation or quality, and a lack of alternative solutions if the current vendor fails to perform. Ensuring robust contract management and performance metrics is critical to mitigate these risks.

How does this contract contribute to the effectiveness of U.S. Special Operations Command's missions?

Advanced radar systems are crucial for intelligence, surveillance, reconnaissance, and targeting operations. This contract ensures SOCOM has access to specialized technology necessary for mission success. However, the effectiveness is intertwined with ensuring the technology is cutting-edge and delivered at a fair price.

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

Solicitation ID: H9240820R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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: $280,109,663

Exercised Options: $280,018,224

Current Obligation: $278,221,228

Subaward Activity

Number of Subawards: 211

Total Subaward Amount: $221,249,427

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline