Raytheon awarded $54.8M for 19 AN/APG-79 AESA Radars for F/A-18E/F aircraft

Contract Overview

Contract Amount: $54,827,109 ($54.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2007-12-21

End Date: 2010-11-30

Contract Duration: 1,075 days

Daily Burn Rate: $51.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/APG-79 AESA RADARS QTY 19 FOR RETROFIT INCORPORATION INTO F/A-18E/F AIRCRAFT LOTS 26-29

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $54.8 million to RAYTHEON COMPANY for work described as: AN/APG-79 AESA RADARS QTY 19 FOR RETROFIT INCORPORATION INTO F/A-18E/F AIRCRAFT LOTS 26-29 Key points: 1. Contract awarded as a sole-source procurement, raising questions about potential price overruns. 2. Focus on retrofitting existing aircraft suggests a need for modernization and capability enhancement. 3. The firm-fixed-price contract type aims to control costs, but competition dynamics are absent. 4. Performance period spans over three years, indicating a significant integration effort. 5. This procurement aligns with broader defense modernization trends for advanced fighter platforms. 6. The specific part number (334511) points to a specialized manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $54.8 million for 19 radar systems averages approximately $2.88 million per unit. Without competitive bidding, it is difficult to benchmark this price against market rates or similar contracts. The lack of competition raises concerns about whether the government achieved the best possible value. Further analysis would require access to cost breakdowns or historical pricing for similar systems.

Cost Per Unit: Approximately $2.88 million per unit (19 units for $54.8M).

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The justification for a sole-source award is not provided in the data, but it often stems from unique capabilities, proprietary technology, or urgent needs where only one source can meet requirements.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher costs for taxpayers.

Public Impact

The U.S. Navy benefits from upgraded radar systems for its F/A-18E/F Super Hornet fleet. Enhanced radar capabilities improve situational awareness, targeting, and electronic warfare performance for pilots. The geographic impact is primarily within the U.S. defense industrial base, specifically supporting Raytheon's operations. Workforce implications include specialized engineering, manufacturing, and integration roles within Raytheon and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about transparency and best value.
Dependence on a single supplier for critical components.

Positive Signals

Procurement of advanced radar technology enhances fleet capabilities.
Firm-fixed-price contract type provides cost certainty.
Retrofit incorporation into existing airframes minimizes new platform development costs.

Sector Analysis

The contract falls within the aerospace and defense sector, specifically focusing on advanced avionics and sensor manufacturing. The market for military radar systems is characterized by high technological barriers to entry and significant government investment. Comparable spending benchmarks would involve other major defense contractors supplying similar sophisticated electronic warfare and sensor systems for fighter aircraft programs.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded directly to Raytheon Company. There is no information provided regarding subcontracting plans or opportunities for small businesses within this specific award. The focus on a large, established defense contractor suggests that prime contract opportunities for small businesses may be limited in this instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Government Accountability Office (GAO) and the Department of Defense's Inspector General (IG). Transparency is limited due to the sole-source nature of the award, but contract modifications and performance reports would be subject to review.

Related Government Programs

F/A-18E/F Super Hornet Program
Advanced Radar Systems Procurement
Naval Aviation Modernization
Electronic Warfare Systems

Risk Flags

Sole-source procurement
Lack of competitive pricing data
Potential integration risks with existing airframes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.8 million to RAYTHEON COMPANY. AN/APG-79 AESA RADARS QTY 19 FOR RETROFIT INCORPORATION INTO F/A-18E/F AIRCRAFT LOTS 26-29

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 Navy).

What is the total obligated amount?

The obligated amount is $54.8 million.

What is the period of performance?

Start: 2007-12-21. End: 2010-11-30.

What is the specific technological advantage offered by the AN/APG-79 AESA radar compared to previous radar systems?

The AN/APG-79 Active Electronically Scanned Array (AESA) radar represents a significant technological leap over older mechanically scanned radar systems. AESA technology utilizes a multitude of small transmit/receive modules, allowing for faster scanning, greater reliability, and enhanced performance. Key advantages include the ability to perform multiple tasks simultaneously (e.g., air-to-air and air-to-ground targeting), improved resistance to jamming, longer detection ranges, and higher resolution for target identification. This upgrade is crucial for maintaining air superiority and enhancing the combat effectiveness of the F/A-18E/F platform against evolving threats.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. While the specific justification is not detailed, common reasons for sole-source procurements in defense include situations where only one responsible source can provide the required supplies or services, such as when the item is unique, proprietary, or requires specialized expertise possessed by only one contractor. For advanced systems like the AN/APG-79 AESA radar, Raytheon may hold the necessary patents, manufacturing know-how, or have unique integration capabilities with the F/A-18E/F platform that make competitive sourcing impractical or excessively costly. The government would typically issue a Justification and Approval (J&A) document outlining the rationale for bypassing competition.

What is the historical spending trend for AN/APG-79 AESA radars or similar systems for the F/A-18E/F program?

Historical spending data for the AN/APG-79 AESA radar program, particularly for the F/A-18E/F, would likely show significant investment over several years as the system was developed, tested, and integrated. Initial procurements often involve higher per-unit costs due to lower volumes and R&D recoupment. Subsequent 'lots' or sustainment contracts may see price reductions through economies of scale and production efficiencies. Analyzing past contract awards for this specific radar system, including quantities and total values, would provide context for the current $54.8 million award. Without access to a comprehensive contract database or specific historical award details, it's challenging to provide precise figures, but such systems typically represent multi-billion dollar investments over the life of an aircraft program.

What are the potential risks associated with retrofitting existing F/A-18E/F aircraft with new radar systems?

Retrofitting existing aircraft with advanced systems like the AN/APG-79 AESA radar presents several potential risks. Integration challenges are paramount; ensuring the new radar is compatible with the aircraft's existing avionics, power systems, and structural integrity can be complex and may uncover unforeseen issues. Schedule delays are common, as integration problems can push back timelines. Cost overruns are also a risk, particularly if unexpected modifications or additional testing are required. Furthermore, the process might necessitate significant downtime for the affected aircraft, impacting fleet readiness. Finally, ensuring the performance gains meet expectations after integration is a critical risk that requires thorough validation and verification.

How does the quantity of 19 radar units impact the overall cost-effectiveness of this procurement?

The procurement of 19 radar units for $54.8 million results in a per-unit cost of approximately $2.88 million. While this is a substantial amount, the cost-effectiveness is influenced by the quantity. If this quantity represents a small batch within a larger, ongoing modernization effort, the per-unit cost might be higher than for larger, more streamlined production runs. Conversely, if these 19 units are part of a critical, limited upgrade phase, the cost might be justified by the immediate capability enhancement. Without knowing the total planned quantity for the F/A-18E/F fleet or the specific phase of the program this award represents, it's difficult to definitively assess the cost-effectiveness solely based on this quantity.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 EAST EL SEGUNDO BLVD., EL SEGUNDO, CA, 36

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,827,109

Exercised Options: $54,827,109

Current Obligation: $54,827,109

Contract Characteristics

Cost or Pricing Data: YES

Timeline