DoD's Raytheon Awarded $27.1M for EKV Cybersecurity, Lacking Competition
Contract Overview
Contract Amount: $27,146,438 ($27.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-08-09
End Date: 2026-09-30
Contract Duration: 782 days
Daily Burn Rate: $34.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: EXO-ATMOSPHERIC KILL VEHICLE (EKV) TASK ORDER 01 TI-TO-0010-24-01 CYBERSECURITY COVERAGE
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85756
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to RAYTHEON COMPANY for work described as: EXO-ATMOSPHERIC KILL VEHICLE (EKV) TASK ORDER 01 TI-TO-0010-24-01 CYBERSECURITY COVERAGE Key points: 1. Significant investment in critical missile defense cybersecurity. 2. Sole-source award to Raytheon raises competition concerns. 3. Research and Development sector, specifically physical sciences. 4. Long-term contract duration of 782 days.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. The fixed fee component provides some cost certainty, but the overall value is difficult to assess without competitive benchmarks.
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 a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The absence of competition for this significant cybersecurity task order raises concerns about potential overspending of taxpayer funds.
Public Impact
Enhances cybersecurity for the Exo-Atmospheric Kill Vehicle (EKV), a critical component of national defense. Ensures the integrity and security of advanced missile defense systems. Supports ongoing research and development in a highly specialized technological area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Addresses critical cybersecurity needs
- Supports advanced defense technology
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically related to advanced defense systems. Spending in this niche R&D area is often characterized by high costs and limited vendor pools.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized nature of the work and the sole-source award, opportunities for small businesses appear to have been missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Transparency in the justification for not competing is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- No small business participation.
- Potential for vendor lock-in due to sole-source nature.
- Lack of transparency regarding justification for sole-source award.
Tags
research-and-development-in-the-physical, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to RAYTHEON COMPANY. EXO-ATMOSPHERIC KILL VEHICLE (EKV) TASK ORDER 01 TI-TO-0010-24-01 CYBERSECURITY COVERAGE
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2024-08-09. End: 2026-09-30.
What is the justification for awarding this cybersecurity task order on a sole-source basis to Raytheon?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent need where only one vendor can fulfill the requirement. Without further details, it's difficult to ascertain the specific rationale, but it's essential for the agency to document and justify why competition was not feasible or advantageous.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Effective cost control will rely heavily on robust government oversight, detailed auditing of Raytheon's expenses, and strict adherence to the contract's fixed fee. The agency must actively manage the scope and ensure that all costs incurred are reasonable, allocable, and necessary for the defined objectives to achieve value.
What are the long-term implications for missile defense system security if cybersecurity expertise is concentrated with a single provider?
Concentrating cybersecurity expertise with a single provider can create systemic risks, including vendor lock-in and potential vulnerabilities if that provider's security is compromised. It also limits the government's ability to leverage diverse perspectives and innovations from a broader market, potentially hindering long-term system resilience and adaptability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
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: HQ085622R0004
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1151 E HERMANS RD, TUCSON, AZ, 85756
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: $27,229,674
Exercised Options: $27,229,674
Current Obligation: $27,146,438
Actual Outlays: $215,957
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ085623D0002
IDV Type: IDC
Timeline
Start Date: 2024-08-09
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-19
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