DoD Awards Raytheon $99.8M for APY-10 RADAR Systems for P-8 Aircraft

Contract Overview

Contract Amount: $99,847,027 ($99.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2017-12-22

Contract Duration: 1,550 days

Daily Burn Rate: $64.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: APY-10 RADAR SYSTEMS AS GFE TO LRIP IV AND FRP I P-8 AIRCRAFT.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75070

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $99.8 million to RAYTHEON COMPANY for work described as: APY-10 RADAR SYSTEMS AS GFE TO LRIP IV AND FRP I P-8 AIRCRAFT. Key points: 1. Significant contract value for advanced radar systems. 2. Sole-source award to Raytheon Company, limiting competition. 3. Potential risk associated with single-source procurement. 4. IT and Defense sectors impacted by this acquisition.

Value Assessment

Rating: fair

The contract value of $99.8M for APY-10 RADAR systems appears substantial. Benchmarking against similar advanced radar system procurements would be necessary to fully assess value, especially given the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Raytheon Company. The lack of competition likely resulted in less price discovery and potentially higher costs for the government.

Taxpayer Impact: The sole-source nature of this award may lead to higher taxpayer costs due to the absence of competitive bidding.

Public Impact

Enhances P-8 aircraft capabilities for search and detection. Supports critical naval operations and national security. Impacts the aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns

Positive Signals

Acquisition of advanced technology
Supports critical defense platforms

Sector Analysis

This acquisition falls within the Defense sector, specifically for advanced radar systems crucial for naval aviation. Spending benchmarks for similar complex electronic systems are typically high, but competitive pricing is key.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's contracting office managed this award.

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
Limited price competition
Potential for cost escalation
Dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.8 million to RAYTHEON COMPANY. APY-10 RADAR SYSTEMS AS GFE TO LRIP IV AND FRP I P-8 AIRCRAFT.

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 $99.8 million.

What is the period of performance?

Start: 2013-09-24. End: 2017-12-22.

What was the justification for the sole-source award of the APY-10 RADAR systems?

The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the unavailability of alternatives from other sources. A thorough review of the contract file would be needed to determine the specific rationale provided by the Department of the Navy for awarding this contract to Raytheon Company without competition.

How does the unit cost of the APY-10 RADAR system compare to similar systems procured competitively?

Without a competitive bidding process, it is difficult to establish a precise benchmark for the unit cost of the APY-10 RADAR system. A comparative analysis with similar radar systems acquired through competitive means, considering factors like technological sophistication and performance specifications, would be necessary to assess potential cost efficiencies or discrepancies.

What are the long-term implications of relying on a single supplier for critical radar components?

Long-term reliance on a single supplier can create vulnerabilities, including potential price increases, supply chain disruptions, and a lack of innovation due to reduced competitive pressure. It also limits the government's flexibility in seeking alternative solutions or upgrades in the future.

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: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001912R0105

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $99,847,027

Exercised Options: $99,847,027

Current Obligation: $99,847,027

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline