DoD's $359M F-18 Radar Warning Receiver Contract with Raytheon Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $359,025,909 ($359.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2009-05-01

End Date: 2019-12-19

Contract Duration: 3,884 days

Daily Burn Rate: $92.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $359.0 million to RAYTHEON COMPANY for work described as: FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM. Key points: 1. The contract awarded to Raytheon Company for the F-18 ALR-67(V)3 Radar Warning Receiver program totals $359 million. 2. Competition was full and open after exclusion of sources, suggesting a potentially limited but justified approach. 3. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is critical for defense. 4. Potential risks include ensuring fair pricing and effective oversight given the long contract duration and sole-source aspects.

Value Assessment

Rating: questionable

The contract's total value of $359 million over nearly a decade requires careful examination against similar radar warning receiver systems. Benchmarking is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific justification for limiting the competitive pool. This method can impact price discovery and potentially lead to higher costs if not managed rigorously.

Taxpayer Impact: Taxpayer funds are allocated to a critical defense system. Ensuring the best possible price through robust oversight is paramount to maximizing value for money.

Public Impact

Ensures the continued operational readiness of the F-18 fighter jet fleet. Supports advanced threat detection capabilities for naval aviation. Represents a significant investment in specialized defense electronics manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Defense sector, specifically in the manufacturing of advanced electronic systems for aircraft. Spending in this area is driven by national security needs and technological advancements in threat detection.

Small Business Impact

The data indicates the award went to Raytheon Company, a large prime contractor. There is no explicit information on small business subcontracting within this specific data point, which warrants further investigation.

Oversight & Accountability

The contract's duration and value necessitate strong oversight from the Department of the Navy to ensure performance, cost control, and adherence to contract terms. Regular reviews and audits are crucial.

Related Government Programs

Risk Flags

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 $359.0 million to RAYTHEON COMPANY. FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM.

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 $359.0 million.

What is the period of performance?

Start: 2009-05-01. End: 2019-12-19.

What specific technological advancements justify the exclusion of other potential sources in this 'full and open competition after exclusion' scenario?

The exclusion of sources likely stems from unique technological requirements, proprietary data, or specialized manufacturing capabilities held by Raytheon for the ALR-67(V)3 system. A detailed justification should outline why only Raytheon could meet these specific, advanced performance parameters for the F-18's radar warning receiver.

How does the $359 million total contract value compare to the lifecycle cost of similar radar warning systems across different platforms or services?

Benchmarking this $359 million contract against similar systems is challenging without detailed cost breakdowns and performance metrics. A comparative analysis would require assessing the system's capabilities, lifespan, and maintenance costs against other platforms' radar warning receivers to determine if the price reflects fair market value.

What mechanisms are in place to ensure ongoing cost-effectiveness and prevent potential cost overruns throughout the contract's nearly decade-long duration?

Given the long duration, robust oversight mechanisms are critical. These should include regular performance reviews, audits of expenditures, and potentially incentive structures tied to cost savings or performance improvements. The firm fixed-price nature offers some cost certainty, but vigilance is needed to manage scope creep and unforeseen issues.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001908R0045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6380 HOLLISTER AVE, GOLETA, CA, 93117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $359,025,909

Exercised Options: $359,025,909

Current Obligation: $359,025,909

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2009-05-01

Current End Date: 2019-12-19

Potential End Date: 2019-12-19 00:00:00

Last Modified: 2019-12-19

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