DoD awards $58M Raytheon contract for Search, Detection, Navigation Systems, with no competition

Contract Overview

Contract Amount: $58,092,846 ($58.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-09-23

End Date: 2020-02-28

Contract Duration: 3,445 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMNS LRIP (FY09 OPN N85)

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $58.1 million to RAYTHEON COMPANY for work described as: AMNS LRIP (FY09 OPN N85) Key points: 1. Contract awarded to Raytheon Company for $58.1M. 2. Focuses on Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems. 3. Contract type is Firm Fixed Price. 4. No small business participation noted. 5. Contract duration spans over 9 years.

Value Assessment

Rating: questionable

The contract value of $58.1M over 9 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition raises concerns about potential overspending of taxpayer funds.

Public Impact

Essential defense systems procurement without competitive pricing. Long-term contract potentially locks in costs for nearly a decade. Lack of small business involvement may limit innovation and economic opportunity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
No small business participation

Positive Signals

Definitive contract award
Firm Fixed Price contract type

Sector Analysis

This contract falls under the Defense sector, specifically manufacturing instruments for search, detection, and navigation. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to leverage the capabilities of smaller businesses and could impact broader economic goals.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that pricing remains reasonable throughout the contract's long duration.

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

Sole-source award lacks competitive pricing.
Long contract duration (9+ years) may lead to cost inefficiencies.
No small business participation noted.
Potential for contractor complacency over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.1 million to RAYTHEON COMPANY. AMNS LRIP (FY09 OPN N85)

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 $58.1 million.

What is the period of performance?

Start: 2010-09-23. End: 2020-02-28.

What justification was provided for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves specific circumstances like unique capabilities, urgent needs, or lack of viable alternatives. The contracting agency would have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to establish fairness and reasonableness, though this process is less robust than competitive bidding.

What are the potential risks associated with a sole-source, long-term contract for critical defense systems?

Risks include inflated costs due to lack of competitive pressure, potential for contractor complacency, and difficulty in adapting to technological advancements or changing requirements over the contract's long lifespan. It also limits opportunities for innovative solutions from other potential providers.

How does the lack of small business participation impact the overall effectiveness and value of this contract?

The absence of small businesses means the DoD may not be benefiting from potentially more agile, innovative, or cost-effective solutions they could offer. It also represents a failure to meet potential small business utilization goals, impacting broader economic development objectives and potentially limiting the supplier base.

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

Solicitation ID: N0002410R6307

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871

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: $72,125,390

Exercised Options: $64,823,747

Current Obligation: $58,092,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline