Raytheon Awarded $36.6M for Ship Self Defense System for Up to Seven Navy Ships

Contract Overview

Contract Amount: $36,601,558 ($36.6M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2007-06-19

End Date: 2011-01-19

Contract Duration: 1,310 days

Daily Burn Rate: $27.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS AWARD IS FOR THE SHIP SELF DEFENSE SYSTEM (SSDS) TO BE PROVIDED FOR UP TO SEVEN SHIPS.

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to RAYTHEON COMPANY for work described as: THIS AWARD IS FOR THE SHIP SELF DEFENSE SYSTEM (SSDS) TO BE PROVIDED FOR UP TO SEVEN SHIPS. Key points: 1. Awarded to Raytheon Company for the Ship Self Defense System (SSDS). 2. Contract covers up to seven ships, with a total value of $36.6 million. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Miscellaneous Electrical Equipment Manufacturing, with a significant award value.

Value Assessment

Rating: fair

The award value of $36.6 million for a ship defense system is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This method can lead to higher prices due to the lack of market pressure and potentially less rigorous price negotiation.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the SSDS, as there was no opportunity to leverage multiple bids to secure the best possible price.

Public Impact

Enhances naval capabilities with advanced self-defense systems. Potential for cost overruns due to non-competitive award. Impacts the readiness and security of multiple naval vessels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency in cost justification

Positive Signals

Addresses critical defense needs
Supports naval fleet modernization

Sector Analysis

This award falls under the Miscellaneous Electrical Equipment and Component Manufacturing sector. Defense procurement in this area often involves high-value, specialized systems where competition can be challenging due to unique technical requirements.

Small Business Impact

The awardee is Raytheon Company, a large defense contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would focus on ensuring the system meets specifications and that the pricing, despite being sole-source, is justifiable and fair.

Related Government Programs

All Other Miscellaneous Electrical Equipment and Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Potential for cost overruns
Lack of competitive benchmarking
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to RAYTHEON COMPANY. THIS AWARD IS FOR THE SHIP SELF DEFENSE SYSTEM (SSDS) TO BE PROVIDED FOR UP TO SEVEN SHIPS.

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 $36.6 million.

What is the period of performance?

Start: 2007-06-19. End: 2011-01-19.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements. Detailed documentation would be required to validate these claims and ensure fair pricing was still pursued.

What are the specific risks associated with a sole-source award for critical defense systems like SSDS?

Sole-source awards for critical systems like the SSDS carry risks of inflated costs due to lack of competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. This can impact long-term affordability and system effectiveness.

How will the effectiveness of the Ship Self Defense System be measured given the non-competitive nature of the award?

Effectiveness will be measured against predefined performance metrics and technical specifications outlined in the contract. The Navy will conduct rigorous testing and evaluation post-delivery to ensure the SSDS meets operational requirements, regardless of the procurement method.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: SHIP AND MARINE EQUIPMENT

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

Address: 8680 BALBOA AVE., SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,601,558

Exercised Options: $36,601,558

Current Obligation: $36,601,558

Contract Characteristics

Cost or Pricing Data: NO

Timeline