DoD's $316.6M Silent Knight Radar Systems Contract Awarded to Raytheon Company

Contract Overview

Contract Amount: $316,639,132 ($316.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-12-01

End Date: 2028-11-30

Contract Duration: 1,826 days

Daily Burn Rate: $173.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SILENT KNIGHT RADAR SYSTEMS (FMS)

Place of Performance

Location: FOREST, SCOTT County, MISSISSIPPI, 39074

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $316.6 million to RAYTHEON COMPANY for work described as: SILENT KNIGHT RADAR SYSTEMS (FMS) Key points: 1. Significant investment in advanced radar technology for Special Operations Command. 2. Sole-source award to Raytheon raises questions about competition and potential cost savings. 3. Long-term contract (5 years) suggests a critical, ongoing need for these systems. 4. Focus on search, detection, and navigation systems highlights operational capabilities.

Value Assessment

Rating: questionable

The contract value of $316.6 million over five years for specialized radar systems is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced radar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this large contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers for these critical systems.

Public Impact

Enhances critical search and detection capabilities for U.S. Special Operations. Potential for advanced situational awareness and mission effectiveness. Long-term commitment to a specific technology may limit future innovation adoption. Impact on the broader defense industrial base and potential for technology transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration
High contract value

Positive Signals

Addresses critical SOCOM needs
Utilizes advanced radar technology
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT and Defense sectors, specifically in the manufacturing of advanced navigation and guidance systems. Spending benchmarks for similar specialized radar systems are difficult to ascertain due to the sole-source nature of this award.

Small Business Impact

The data does not indicate any specific provisions or benefits for small businesses in this sole-source contract award to Raytheon Company. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight of this sole-source contract will be crucial to ensure Raytheon meets performance requirements and that costs remain justified throughout the contract's duration. The Department of Defense and U.S. Special Operations Command are responsible for accountability.

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 higher costs due to lack of competitive bidding.
Risk of technological obsolescence over the 5-year contract term.
Limited transparency on pricing justification.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $316.6 million to RAYTHEON COMPANY. SILENT KNIGHT RADAR SYSTEMS (FMS)

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 $316.6 million.

What is the period of performance?

Start: 2023-12-01. End: 2028-11-30.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price was obtained?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. The Department of Defense would need to provide documentation detailing why competition was not feasible. Without competitive bidding, ensuring the 'best possible price' relies heavily on robust negotiation, independent cost analysis, and stringent oversight by the contracting agency to validate Raytheon's proposed costs and profit margins.

What are the potential risks associated with a long-term, sole-source contract for advanced radar systems, particularly regarding technological obsolescence and cost overruns?

A long-term, sole-source contract carries risks of technological obsolescence if the awarded system is surpassed by newer innovations during the contract period. Cost overruns are also a concern, as the lack of competition can reduce incentives for the contractor to control expenses. Without competitive pressure, Raytheon might face less urgency to innovate or find cost efficiencies, potentially leading to higher overall expenditure for the government over the contract's life.

How will the effectiveness of the Silent Knight Radar Systems be measured, and what performance metrics will be used to ensure the $316.6 million investment delivers the intended operational capabilit

The effectiveness of the Silent Knight Radar Systems will be measured through predefined performance metrics outlined in the contract. These likely include factors such as detection range, accuracy, reliability under various environmental conditions, and integration capabilities with existing SOCOM platforms. Regular performance reviews, operational testing, and user feedback from Special Operations personnel will be critical to assessing whether the systems meet the intended operational capabilities and justify the significant investment.

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: H9240823R1000

Offers Received: 1

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, 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: $372,358,430

Exercised Options: $321,266,052

Current Obligation: $316,639,132

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $113,258,636

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline