Raytheon Awarded $12.87M for AN/SQQ-32 Sonar Services, Extending Contract to 2011
Contract Overview
Contract Amount: $12,866,249 ($12.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2000-04-26
End Date: 2011-01-08
Contract Duration: 3,909 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: 200007!1700!002323!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002400C6303 !A!*!* !20000426!20050426!001410539!001339159!001339159!N!94404!RAYTHEON COMPANY INC !528 BOSTON POST RD !SUDBURY !MA!01776!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000010507168!N!N!000000000000!1906!MINELAYERS AND MINESWEEPERS !S1 !SERVICES !2GSV!AN/SQQ-32 SONAR !3812!3!*!*!*!B!A!*!D !N!V!1!001!N!1A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $12.9 million to RAYTHEON COMPANY for work described as: 200007!1700!002323!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002400C6303 !A!*!* !20000426!20050426!001410539!001339159!001339159!N!94404!RAYTHEON COMPANY INC !528 BOSTON POST RD !SUDBURY !MA!01776!57700!005!44!PORTSMOUTH !NEW… Key points: 1. Contract awarded to Raytheon Company for sonar services. 2. Significant contract value of $12.87 million. 3. Contract duration is over 10 years, indicating long-term need. 4. Services are for Minelayers and Minesweepers, a specialized defense niche.
Value Assessment
Rating: fair
The contract value of $12.87 million over a decade suggests a substantial but potentially variable per-unit cost. Without specific unit counts or detailed cost breakdowns, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition scenario. This may have impacted price discovery, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are committed to a sole-source or limited-source contract, raising questions about cost-effectiveness and the potential for inflated pricing.
Public Impact
Enhances naval capabilities for mine countermeasures. Supports the operational readiness of U.S. Navy vessels. Represents a significant investment in specialized defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Cost-plus contract type
Positive Signals
- Essential defense capability
- Established contractor
- Long-term support
Sector Analysis
This contract falls within the Defense sector, specifically supporting naval operations with sonar technology. Spending benchmarks for specialized defense systems like sonar can vary widely based on technological complexity and quantity.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The contract's long duration and limited competition warrant careful oversight to ensure continued value for taxpayer money and adherence to contract terms.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition raises cost concerns.
- Long contract duration increases exposure to potential cost increases.
- Cost-plus contract type shifts cost risk to the government.
- Lack of transparency on unit costs hinders value assessment.
Tags
department-of-defense, ri, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to RAYTHEON COMPANY. 200007!1700!002323!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002400C6303 !A!*!* !20000426!20050426!001410539!001339159!001339159!N!94404!RAYTHEON COMPANY INC !528 BOSTON POST RD !SUDBURY !MA!01776!57700!005!44!PORTSMOUTH !NEWPORT !RHODE ISLD!0001!+000010507168!N!N!000000000000!1906!MINELAYERS AND MINESWEEPERS !S1 !SERVICES !2GSV!AN/SQQ-32 SONAR !3812!3!*!*!*!B!A!*!D !N!V!
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2000-04-26. End: 2011-01-08.
What was the rationale for limiting competition on this significant sonar services contract?
The rationale for limiting competition likely stems from the specialized nature of the AN/SQQ-32 sonar system, potentially requiring unique technical expertise or proprietary knowledge held by Raytheon. This could be due to specific integration requirements with existing naval platforms or a lack of alternative qualified vendors in the market at the time of award.
How does the cost-plus incentive fee structure impact the overall risk and potential for cost overruns?
A cost-plus incentive fee (CPIF) structure aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. While it offers some risk mitigation compared to pure cost-plus, it still places the primary cost risk on the government and requires robust oversight to ensure the incentive targets are appropriate and achievable.
What is the long-term strategic value of investing in the AN/SQQ-32 sonar system over such an extended period?
The long-term strategic value lies in maintaining and enhancing the U.S. Navy's mine countermeasures capabilities, crucial for ensuring freedom of navigation and protecting naval assets. Continuous investment ensures the system remains effective against evolving threats and integrated with modern naval platforms, supporting overall fleet readiness and mission success.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Address: 528 BOSTON POST RD, SUDBURY, MA, 05
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-04-26
Current End Date: 2011-01-08
Potential End Date: 2011-01-08 00:00:00
Last Modified: 2010-06-06
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