Raytheon Awarded $12.3M for Fire Control Systems Amidst Limited Competition

Contract Overview

Contract Amount: $12,343,252 ($12.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2005-02-24

End Date: 2005-12-31

Contract Duration: 310 days

Daily Burn Rate: $39.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200505!047438!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C5102 !A!N! !N! ! !20050224!20071231!039192216!045591104!001339159!N!RAYTHEON COMPANY !1501 72ND ST N !SAINT PETERSBU !FL!33710!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000013316406!N!N!000000000000!1265!FIRE CONTROL TRANSMITTING & RECEIVING EQ !A7 !ELECTRONICS AND COMMUNICATION EQUIP !582 !CEC !334511!E! !3! ! ! ! ! !20200930!B!A! !A! !D!N!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! !Y!1724!N00024!0001! !

Place of Performance

Location: SEMINOLE, PINELLAS County, FLORIDA, 33777

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to RAYTHEON COMPANY for work described as: 200505!047438!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C5102 !A!N! !N! ! !20050224!20071231!039192216!045591104!001339159!N!RAYTHEON COMPANY !1501 72ND ST N !SAINT PETERSBU !FL!33710!66000!073!06!SAN DIEGO !SAN … Key points: 1. The contract value is $12,343,252.19 for fire control transmitting and receiving equipment. 2. Awarded to Raytheon Company, a major defense contractor, indicating significant industry presence. 3. The contract was 'NOT COMPETED', raising potential concerns about price discovery and value. 4. The sector is Defense, specifically related to electronics and communication equipment.

Value Assessment

Rating: questionable

The contract value of $12.3M for fire control systems is difficult to benchmark without specific details on the equipment's complexity and quantity. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, which limits the opportunity for price discovery and potentially leads to higher costs for the government. The specific justification for limited competition is not provided.

Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for these fire control systems.

Public Impact

Naval operations rely on advanced fire control systems for effective defense. This contract supports the development and procurement of critical electronic warfare capabilities. The award to a single vendor highlights the specialized nature of defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Specialized equipment

Positive Signals

Supports critical defense systems
Award to established contractor

Sector Analysis

This contract falls within the Defense sector, specifically for electronics and communication equipment. Defense spending on specialized systems like fire control is common, but competitive bidding is crucial for cost efficiency.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract award.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the government received fair value and that the justification for limited competition was sound.

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 competitive bidding
Potential for inflated pricing
Limited transparency on justification for non-competition
Reliance on a single contractor for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to RAYTHEON COMPANY. 200505!047438!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C5102 !A!N! !N! ! !20050224!20071231!039192216!045591104!001339159!N!RAYTHEON COMPANY !1501 72ND ST N !SAINT PETERSBU !FL!33710!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000013316406!N!N!000000000000!1265!FIRE CONTROL TRANSMITTING & RECEIVING EQ !A7 !ELECTRONICS AND COMMUNICATION EQUIP !582 !CEC !334511!E! !3! ! ! ! ! !202

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 $12.3 million.

What is the period of performance?

Start: 2005-02-24. End: 2005-12-31.

What was the specific justification for not competing this contract, and were alternative solutions considered?

The provided data states the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as a sole-source provider, urgent need, or unique capability. Without this information, it's impossible to assess if alternative solutions were adequately explored or if the lack of competition was truly warranted.

How does the unit cost of these fire control systems compare to similar systems procured through competitive means?

Benchmarking the unit cost is challenging without more detailed specifications of the fire control transmitting and receiving equipment. However, given the contract was not competed, there is a heightened risk that the price may be higher than if multiple vendors had submitted bids. A comparative analysis with similar, competitively procured systems would be necessary to quantify any potential cost disparity.

What is the long-term strategic value of this specific fire control system to naval operations?

The strategic value lies in its role within naval defense systems, likely enhancing targeting accuracy and operational effectiveness. The award to Raytheon, a known defense contractor, suggests the system meets specific technological requirements. However, the value proposition is diminished if procured at a non-competitive price, impacting the overall return on investment for taxpayer funds.

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: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1501 72ND ST N, SAINT PETERSBU, FL, 33710

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline