Dod's $38.3M EHF FOT Ship Communication Group Contract Awarded to Raytheon Company
Contract Overview
Contract Amount: $38,326,000 ($38.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-06-01
End Date: 2009-05-01
Contract Duration: 700 days
Daily Burn Rate: $54.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EHF FOT SHIP COMMUNICATION GROUP (CG)
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $38.3 million to RAYTHEON COMPANY for work described as: EHF FOT SHIP COMMUNICATION GROUP (CG) Key points: 1. Contract awarded to Raytheon Company for communication equipment. 2. Significant spending in the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. 3. No competition was cited for this award, raising potential value concerns. 4. The contract duration was 700 days, with a total value of $38.3 million.
Value Assessment
Rating: questionable
The contract value of $38.3 million for communication equipment over 700 days appears high given the lack of competitive bidding. Benchmarking against similar contracts is difficult without more specific details on the equipment and services provided.
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 the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this communication equipment and associated services.
Public Impact
Naval operations may be impacted by the reliability and performance of this communication system. Raytheon's role as a sole-source provider could influence future market dynamics for similar defense contracts. The $38.3 million expenditure represents a notable investment in military communication infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award process
Positive Signals
- Award to established defense contractor
- Firm fixed price contract type
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, a critical area for defense communications. Spending in this sector can vary widely based on technological advancements and specific military needs.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The 'NOT COMPETED' designation suggests a potential gap in oversight regarding the justification for a sole-source award. Further review would be needed to ensure proper procedures were followed and best value was achieved.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No indication of small business participation
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to RAYTHEON COMPANY. EHF FOT SHIP COMMUNICATION GROUP (CG)
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 $38.3 million.
What is the period of performance?
Start: 2007-06-01. End: 2009-05-01.
What was the specific justification for awarding this contract on a sole-source basis, and was a thorough market research conducted to confirm no other capable vendors existed?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. Without the specific justification documentation, it's impossible to confirm the rationale or the extent of market research. Typically, sole-source awards require a strong justification, such as unique capabilities or urgent needs, to ensure taxpayer funds are used responsibly and competitively where possible.
How does the unit cost or overall price of this contract compare to similar communication systems procured competitively by the Department of Defense or other agencies?
Direct comparison is challenging without detailed specifications of the EHF FOT SHIP COMMUNICATION GROUP system and its components. However, the absence of competition inherently raises concerns about whether the $38.3 million price reflects fair market value. A competitive process would typically drive prices down, making this sole-source award potentially less cost-effective for the government.
What are the key performance metrics and expected outcomes for this communication system, and how will their achievement be measured to ensure effectiveness?
The data does not specify the performance metrics or expected outcomes for the EHF FOT SHIP COMMUNICATION GROUP. As a firm fixed price contract, the focus is on delivery of the specified equipment. However, ensuring the system's effectiveness in supporting naval operations would require post-delivery testing, operational assessments, and potentially user feedback mechanisms not detailed in this record.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003907R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $38,326,000
Exercised Options: $38,326,000
Current Obligation: $38,326,000
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-01
Current End Date: 2009-05-01
Potential End Date: 2009-05-01 00:00:00
Last Modified: 2009-05-15
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