DoD Awards Raytheon $152.6M for 19 AN/APG-79 AESA Radars for F/A-18E/F Aircraft
Contract Overview
Contract Amount: $152,635,271 ($152.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-04-02
End Date: 2020-04-27
Contract Duration: 4,043 days
Daily Burn Rate: $37.8K/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 IN F/A-18E/F AIRCRAFT LOTS 26-29
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $152.6 million to RAYTHEON COMPANY for work described as: AN/APG-79 AESA RADARS QTY 19 FOR RETROFIT INCORPORATION IN F/A-18E/F AIRCRAFT LOTS 26-29 Key points: 1. High-value award for critical aircraft components. 2. Sole-source contract with Raytheon Company raises competition concerns. 3. Long contract duration (4043 days) may impact price competitiveness. 4. Sector: Defense - specifically aeronautical and nautical instrument manufacturing.
Value Assessment
Rating: questionable
The contract value of $152.6 million for 19 radar units results in a per-unit cost of approximately $8 million. Without specific benchmarks for AESA radar systems, it's difficult to definitively assess value, but the lack of competition suggests potential for overpricing.
Cost Per Unit: $8,000,000
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 lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award means taxpayers may be paying a premium for these advanced radar systems.
Public Impact
Enhances capabilities of the F/A-18E/F Super Hornet fleet. Supports national defense and military readiness. Long-term sustainment and potential for future upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- No small business participation indicated.
Positive Signals
- Provides advanced radar technology.
- Supports critical defense platform.
Sector Analysis
This award falls within the Defense sector, specifically the manufacturing of advanced radar systems for military aircraft. Spending benchmarks in this niche area are highly specialized, but significant investment in such technology is common for maintaining air superiority.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized nature of AESA radar systems, it is common for prime contractors to handle such work, potentially limiting opportunities for smaller businesses in this specific award.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight would typically involve program management reviews, milestone tracking, and financial audits to ensure contract compliance and taxpayer value, especially given the sole-source nature.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement.
- Lack of small business participation.
- Long contract duration.
- Potential for price escalation over time.
- Risk of technological obsolescence.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.6 million to RAYTHEON COMPANY. AN/APG-79 AESA RADARS QTY 19 FOR RETROFIT INCORPORATION IN 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 $152.6 million.
What is the period of performance?
Start: 2009-04-02. End: 2020-04-27.
What is the justification for the sole-source award of the AN/APG-79 AESA radars, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For the AN/APG-79, this could be due to proprietary technology, unique capabilities, or existing integration with the F/A-18E/F platform. The Department of Defense would have conducted a price analysis, potentially comparing costs to similar systems or using historical data, to determine if the price was fair and reasonable, despite the lack of direct competition.
How does the long contract duration of over 11 years impact the overall cost-effectiveness and potential for technological obsolescence?
A contract duration of 4043 days (over 11 years) presents both opportunities and risks. It allows for stable production and integration, potentially leading to economies of scale. However, it also increases the risk of technological obsolescence in a rapidly evolving field like radar systems. Furthermore, extended periods without re-competition can lead to less favorable pricing over time if market conditions or technology have shifted significantly.
What is the strategic importance of the AN/APG-79 AESA radar for the F/A-18E/F platform, and what are the implications of its sole-source procurement for fleet modernization?
The AN/APG-79 AESA radar is a critical upgrade, significantly enhancing the F/A-18E/F's situational awareness, targeting capabilities, and electronic warfare functions. Its sole-source procurement ensures a consistent and integrated upgrade path for the fleet's modernization. However, it also highlights a potential dependency on a single supplier for a key component, which could pose long-term strategic risks if that supplier faces production issues or if alternative, more advanced technologies emerge elsewhere.
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, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $152,635,271
Exercised Options: $152,635,271
Current Obligation: $152,635,271
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-04-02
Current End Date: 2020-04-27
Potential End Date: 2020-04-27 00:00:00
Last Modified: 2020-02-27
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