DoD Awards Raytheon $139.5M Contract for P-8A Radar Systems Amidst Limited Competition
Contract Overview
Contract Amount: $139,489,977 ($139.5M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-06-18
End Date: 2030-11-29
Contract Duration: 2,355 days
Daily Burn Rate: $59.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UCA FOR MATERIALS NECESSARY TO SUPPORT THE DELIVERY OF THE P-8A LOT 13 APY-10 RADAR SYSTEMS.
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $139.5 million to RAYTHEON COMPANY for work described as: UCA FOR MATERIALS NECESSARY TO SUPPORT THE DELIVERY OF THE P-8A LOT 13 APY-10 RADAR SYSTEMS. Key points: 1. Significant contract value for critical P-8A aircraft radar systems. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Long-term contract duration (2030) suggests sustained need. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: fair
The $139.5 million contract is for P-8A radar systems. Without available benchmarks or pricing details, assessing its value against similar contracts is difficult. The firm fixed price structure is a positive sign for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers compared to a competitive procurement process.
Public Impact
Ensures continued operational capability for the P-8A Poseidon maritime patrol aircraft. Supports a critical defense system, impacting national security and surveillance. Potential for long-term reliance on a single supplier for this technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Long contract duration
Positive Signals
- Firm Fixed Price contract
- Supports critical defense asset
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for maintaining advanced military capabilities, with significant government investment typical for specialized defense systems.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The firm fixed price contract type provides some cost control. However, the sole-source nature warrants close oversight to ensure fair pricing and prevent potential cost overruns throughout the contract's duration.
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 award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration increases long-term cost exposure.
- No clear small business participation outlined.
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.5 million to RAYTHEON COMPANY. UCA FOR MATERIALS NECESSARY TO SUPPORT THE DELIVERY OF THE P-8A LOT 13 APY-10 RADAR SYSTEMS.
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 $139.5 million.
What is the period of performance?
Start: 2024-06-18. End: 2030-11-29.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for the sole-source award is not provided in the data. The Department of the Navy should ensure robust cost analysis and negotiation with Raytheon to achieve fair and reasonable pricing. Regular reviews of performance and cost are essential to mitigate risks associated with limited competition.
What is the long-term strategy for P-8A radar system sustainment and potential future competition?
The long-term strategy for radar system sustainment is unclear from this award alone. The Department of the Navy should consider market research for future procurements to foster competition and explore alternative suppliers or technologies to avoid vendor lock-in and ensure cost-effectiveness over the system's lifecycle.
How does the cost of this contract compare to previous P-8A radar system procurements or similar systems?
Without access to historical pricing data or benchmarks for comparable systems, it is impossible to definitively assess the cost-effectiveness of this $139.5 million contract. A thorough cost analysis by the DoD is necessary to validate the pricing against industry standards and previous awards.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001924R0014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $142,915,032
Exercised Options: $139,489,977
Current Obligation: $139,489,977
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $8,100,705
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-18
Current End Date: 2030-11-29
Potential End Date: 2030-11-29 00:00:00
Last Modified: 2025-12-22
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