Raytheon Awarded $63.4M for Electronics and Communication Systems by Naval Sea Systems Command

Contract Overview

Contract Amount: $63,406,528 ($63.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 1997-12-05

End Date: 2004-07-31

Contract Duration: 2,430 days

Daily Burn Rate: $26.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199805!1700!0419!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5466 !A!*!P00001 !19971205!19990430!049973027!001339159!001339159!N!05869!RAYTHEON COMPANY (INC) !1901 W MLVERN 1801 HUGHES !FULLERTON !CA!92833!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000007470346!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!D !N!R!1!001!N!1G!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.4 million to RAYTHEON COMPANY for work described as: 199805!1700!0419!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5466 !A!*!P00001 !19971205!19990430!049973027!001339159!001339159!N!05869!RAYTHEON COMPANY (INC) !1901 W MLVERN 1801 HUGHES !FULLERTON !CA!92833!66000!073!06!SAN DIEGO !SAN DI… Key points: 1. Contract awarded to Raytheon Company for electronics and communication systems. 2. Significant value of $63.4 million for a definitive contract. 3. Contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The sector is Defense, specifically for Naval Sea Systems Command. 5. No small business participation noted.

Value Assessment

Rating: good

The contract value of $63.4 million for a definitive contract of this duration appears reasonable for specialized electronics and communication systems. Benchmarking against similar complex defense systems contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', suggesting a limited competition or sole-source justification. This method of procurement may limit price discovery and potentially lead to higher costs compared to a fully open competition.

Taxpayer Impact: The lack of full and open competition could result in taxpayers paying a premium for these specialized systems.

Public Impact

Enhances naval capabilities through advanced electronics and communication systems. Supports national defense by equipping naval forces with critical technology. Potential for technological advancements in naval warfare systems. Contract duration of over 6 years suggests a long-term need for these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Award Fee structure can lead to cost overruns if not managed carefully
No small business participation

Positive Signals

Awarded to a known defense contractor
Supports critical naval systems
Potential for technological advancement

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval electronics and communication systems. Spending in this area is crucial for maintaining military readiness and technological superiority, with significant government investment typically allocated to R&D and procurement of advanced systems.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor, Raytheon Company, is handling the entire scope of work, potentially missing opportunities to leverage small business innovation and economic participation.

Oversight & Accountability

The contract is managed by the Naval Sea Systems Command, a key component of the Department of Defense responsible for naval platforms. Oversight would typically involve contract performance monitoring, cost control, and ensuring delivery of specified capabilities.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of full and open competition
Cost Plus Award Fee contract type
No small business participation
Long contract duration (over 6 years)
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.4 million to RAYTHEON COMPANY. 199805!1700!0419!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5466 !A!*!P00001 !19971205!19990430!049973027!001339159!001339159!N!05869!RAYTHEON COMPANY (INC) !1901 W MLVERN 1801 HUGHES !FULLERTON !CA!92833!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000007470346!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!D !N!R!1!0

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 $63.4 million.

What is the period of performance?

Start: 1997-12-05. End: 2004-07-31.

What specific technological advancements or capabilities does this contract aim to deliver for naval systems?

The contract aims to procure 'ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ', which likely refers to advanced electronic countermeasure systems, central control and monitoring systems, and quick reaction capabilities equipment. These are critical for enhancing naval vessel survivability, situational awareness, and operational effectiveness in complex threat environments.

What are the primary risks associated with a 'Cost Plus Award Fee' contract for these types of systems?

The primary risks with a Cost Plus Award Fee (CPAF) contract include potential for cost overruns if performance targets are not clearly defined or achievable, and the contractor may focus on maximizing award fees rather than strict cost control. Effective oversight is crucial to ensure the government receives good value and the contractor is incentivized appropriately.

How does the lack of competition impact the long-term effectiveness and cost of these naval systems?

The lack of competition ('NOT COMPETED') can limit innovation and potentially lead to higher costs over the system's lifecycle. Without competitive pressure, there's less incentive for the contractor to reduce costs or improve efficiency. This could impact the overall effectiveness and affordability of the naval systems reliant on this technology.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1801 HUGHES DR, FULLERTON, CA, 92833

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline