Raytheon Awarded $211M for Electronics and Communication Systems by Naval Sea Systems Command

Contract Overview

Contract Amount: $21,120,365 ($21.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2002-06-28

End Date: 2006-09-30

Contract Duration: 1,555 days

Daily Burn Rate: $13.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200209!024363!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5107 !A!N! !N! !20020628!20020628!964265664!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003200000!N!N!000019000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!V!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to RAYTHEON COMPANY for work described as: 200209!024363!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5107 !A!N! !N! !20020628!20020628!964265664!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003200000!N!N!000019000000!5865!EL… Key points: 1. The contract value is substantial at $211.2 million. 2. Raytheon Technical Services Co. is the sole awardee, indicating a lack of competition. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns. 4. The sector is Electronics and Communication, a critical area for defense operations.

Value Assessment

Rating: fair

The contract value of $211.2 million for a 4-year period appears high given the lack of detailed scope. Benchmarking is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these electronics and communication systems.

Public Impact

Ensures continued operation and maintenance of critical naval electronic systems. Supports advanced capabilities in search, detection, navigation, and guidance for naval assets. Potential for cost overruns due to the Cost Plus Incentive Fee contract type. Lack of transparency in the procurement process due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Incentive Fee contract type
Limited transparency on pricing

Positive Signals

Supports critical defense capabilities
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically for Electronics and Communication systems. Spending in this area is crucial for maintaining naval technological superiority, but often involves complex and high-value procurements.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight is needed to confirm the value and effectiveness of the services provided.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Cost Plus Incentive Fee contract type may lead to cost overruns
Potential for inflated pricing due to sole-source award
Limited transparency on specific deliverables and pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to RAYTHEON COMPANY. 200209!024363!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5107 !A!N! !N! !20020628!20020628!964265664!112820840!001339159!N!RAYTHEON TECHNICAL SERVICES CO!8680 BALBOA AVE !SAN DIEGO !CA!92123!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003200000!N!N!000019000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!V!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y!

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 $21.1 million.

What is the period of performance?

Start: 2002-06-28. End: 2006-09-30.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award is typically based on unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without further documentation, it's difficult to assess the price determination. However, the lack of competition inherently raises concerns about whether the government achieved the best possible price.

What are the specific performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) contract?

A CPIF contract aims to incentivize the contractor to control costs by sharing in any savings or overruns. The specific performance metrics and incentive fee structure are crucial for understanding how Raytheon is motivated to perform efficiently and cost-effectively. Detailed review of the contract's special provisions is necessary to assess the risk and potential reward.

How does this contract contribute to the overall modernization and operational readiness of the Naval Sea Systems Command's fleet?

This contract supports the maintenance and enhancement of critical electronic systems, including search, detection, and navigation capabilities. These systems are fundamental to the operational readiness and effectiveness of naval vessels. The long-term nature of the contract suggests a sustained need for these services, contributing to the ongoing modernization efforts.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 8650 BALBOA AVE, SAN DIEGO, CA, 92123

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline