Navy awards $11.9M contract for SLEP SEEKERS REPAIR UCA to Raytheon Company

Contract Overview

Contract Amount: $11,894,000 ($11.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2026-12-31

Contract Duration: 457 days

Daily Burn Rate: $26.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SLEP SEEKERS REPAIR UCA

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to RAYTHEON COMPANY for work described as: SLEP SEEKERS REPAIR UCA Key points: 1. Contract value represents a significant investment in aircraft sustainment. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration suggests a critical and ongoing need for these services. 4. Focus on repair and sustainment indicates a mature fleet requiring specialized support. 5. Geographic location in Texas may influence logistics and regional economic impact.

Value Assessment

Rating: fair

The contract value of $11.9 million for SLEP SEEKERS REPAIR UCA is difficult to benchmark without specific details on the scope of work and the number of units or repairs covered. As a sole-source award, there is no direct comparison to other bids to assess pricing competitiveness. The fixed-firm price structure provides some cost certainty, but the absence of competitive bidding limits the ability to determine if the pricing is at market rates or represents optimal value for money.

Cost Per Unit: N/A

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 companies vying for the contract. While sole-source awards can be justified for specialized capabilities or urgent needs, they limit price discovery and may result in higher costs compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The absence of multiple bids means there was no direct pressure on Raytheon to offer the lowest possible price for the required services.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation units operating the aircraft requiring SLEP SEEKERS REPAIR UCA. The contract will ensure the continued operational readiness and safety of critical aircraft through necessary repairs and sustainment. The geographic impact is centered in Texas, where the contractor is located, potentially supporting local jobs and the regional aerospace ecosystem. Workforce implications include the potential for skilled technicians and engineers at Raytheon to be engaged in specialized aircraft maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to lack of competition.

Positive Signals

Contract awarded to a known entity (Raytheon Company) with established capabilities.
Firm fixed price contract provides cost predictability.
Long-term contract duration indicates a stable, ongoing requirement.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and repair. The market for aircraft maintenance, repair, and overhaul (MRO) is substantial, with significant government spending allocated to ensuring fleet readiness. Comparable spending benchmarks would involve analyzing other contracts for similar repair services on different aircraft platforms or for different branches of the military.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the sole-source nature and the likely specialized requirements, it is improbable that subcontracting opportunities for small businesses would be a primary focus unless explicitly mandated. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver services within the agreed-upon cost. Transparency may be limited due to the sole-source nature, but contract details and performance reports are usually available through official channels, subject to classification.

Related Government Programs

Aircraft Depot Maintenance
Aerospace Component Repair
Defense Logistics Support
Fleet Readiness Programs
Aircraft Systems Sustainment

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to RAYTHEON COMPANY. SLEP SEEKERS REPAIR UCA

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 $11.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-12-31.

What specific aircraft platform or system does 'SLEP SEEKERS REPAIR UCA' refer to, and what is the nature of the required repairs?

The acronym 'SLEP SEEKERS REPAIR UCA' likely refers to a Service Life Extension Program (SLEP) for a specific aircraft component or system, possibly related to 'seekers' (e.g., in missile systems or targeting pods) and 'UCA' (which could denote a specific aircraft type or a system designation). A SLEP aims to extend the operational life of an asset beyond its original design life through significant maintenance, overhaul, and upgrades. The 'repair' aspect indicates that the contract covers the necessary maintenance and restoration activities to ensure these components or systems are functional and meet performance standards for continued service. Without access to the full contract details or military system nomenclature, the precise aircraft and the exact nature of the repairs remain unspecified, but it is clearly related to maintaining the readiness and extending the lifespan of critical defense assets.

What is the historical spending pattern for this specific type of repair service or for the SLEP of the associated aircraft/system?

Analyzing historical spending patterns for this specific repair service or SLEP requires access to detailed contract databases and the ability to filter by the exact system or aircraft. Given this is a sole-source award to Raytheon Company for 'SLEP SEEKERS REPAIR UCA,' past contracts for similar services provided by Raytheon or other potential vendors would be relevant. A review of previous years' defense budgets and contract awards related to the specific aircraft or system in question would reveal trends in spending. For instance, if this is a recurring need, one would expect to see consistent or increasing allocations over time, especially as the fleet ages. Conversely, a sudden increase might indicate a new issue or a more comprehensive overhaul. Without the specific system identification, providing precise historical spending figures is not feasible, but such analysis is crucial for understanding the long-term financial commitment and identifying potential cost efficiencies or escalations.

What are the key performance indicators (KPIs) and metrics used to evaluate Raytheon Company's performance under this contract?

Key Performance Indicators (KPIs) for a contract like 'SLEP SEEKERS REPAIR UCA' would typically focus on ensuring the timely and effective restoration of aircraft components or systems. Common KPIs in such sustainment contracts include turnaround time (TAT) for repairs, meeting specified quality standards (e.g., defect rates, rework percentages), adherence to delivery schedules, and overall system performance post-repair. For a SLEP, KPIs might also include the successful extension of service life and the achievement of projected operational availability rates for the affected assets. The contract likely specifies acceptable quality levels (AQLs) and performance standards that Raytheon must meet. Failure to meet these KPIs could result in penalties, reduced payments, or contract termination, depending on the severity and contractual terms. The Department of the Navy would monitor these metrics to ensure value for money and operational readiness.

What is Raytheon Company's track record with similar sole-source contracts for aircraft sustainment or SLEP programs?

Raytheon Company has a long and extensive track record as a major defense contractor, frequently involved in complex systems sustainment, repair, and upgrade programs across various military platforms. Their experience spans numerous aircraft, missile systems, and electronic warfare suites. When it comes to sole-source contracts, Raytheon, like other large defense primes, is often awarded such contracts due to possessing unique technical expertise, proprietary technology, or being the original equipment manufacturer (OEM) for critical systems. Their track record with sole-source awards would generally reflect their established capabilities and the government's reliance on their specialized services. Performance on these contracts is typically evaluated based on meeting technical specifications, delivery schedules, and cost targets, though the absence of competition can sometimes lead to scrutiny regarding pricing. A thorough review would involve examining past performance evaluations and any associated contract disputes or overruns.

How does the $11.9 million contract value compare to the overall budget allocated for the SLEP SEEKERS REPAIR UCA program or similar sustainment efforts?

The $11.9 million contract value represents a specific funding allocation for the 'SLEP SEEKERS REPAIR UCA' services provided by Raytheon Company. To assess how this compares to the overall budget, one would need to identify the total program funding for this specific SLEP or the broader sustainment category for the associated aircraft or system. This figure might be a portion of a larger, multi-year program budget or a standalone allocation for a defined period. Without knowing the total program cost or the number of units/repairs covered, it's challenging to determine if $11.9 million is a significant or minor portion. However, for specialized repair and life extension services on complex defense assets, such contract values are not uncommon. Benchmarking against similar SLEP programs for other aircraft or systems, or against the annual sustainment costs for the specific platform, would provide better context on the relative scale of this award.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

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

Parent Company: RTX Corp

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $13,729,000

Exercised Options: $13,729,000

Current Obligation: $11,894,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001925G0009

IDV Type: BOA

Timeline