DoD's $13.8M Environmental Satellite Receiver Program Awarded to Raytheon Company Under Definitive Contract
Contract Overview
Contract Amount: $13,874,715 ($13.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-03-23
End Date: 2012-02-03
Contract Duration: 1,778 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENVIRONMENTAL SATELLITE RECEIVER PROGRAM TAS::17 1804::TAS
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46219
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $13.9 million to RAYTHEON COMPANY for work described as: ENVIRONMENTAL SATELLITE RECEIVER PROGRAM TAS::17 1804::TAS Key points: 1. Significant investment in space-based environmental monitoring technology. 2. Sole awardee, Raytheon Company, suggests potential lack of broad market competition. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. Long contract duration (5 years) indicates a complex, ongoing program.
Value Assessment
Rating: fair
The contract value of $13.8M over 5 years for a specialized satellite receiver program appears reasonable given the technology involved. However, without specific benchmarks for similar systems, a definitive assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are utilized for this program. The lack of competition raises concerns about whether the best possible price was achieved.
Public Impact
Enhances environmental monitoring capabilities through advanced satellite technology. Supports national security and scientific research objectives. Potential for technological advancements in Earth observation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Critical technology for environmental monitoring
- Established contractor (Raytheon)
Sector Analysis
This contract falls within the Defense sector, specifically related to space and technology. Spending in this area is often high due to the complexity and strategic importance of advanced systems.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is Raytheon Company, a large business. This suggests limited direct opportunity for small businesses on this particular contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which provides oversight for contract performance and financial accountability. Further review would be needed to assess the effectiveness of this oversight.
Related Government Programs
- Space Research and Technology
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration may indicate potential for scope creep or evolving requirements.
- Lack of small business participation.
Tags
space-research-and-technology, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to RAYTHEON COMPANY. ENVIRONMENTAL SATELLITE RECEIVER PROGRAM TAS::17 1804::TAS
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 $13.9 million.
What is the period of performance?
Start: 2007-03-23. End: 2012-02-03.
What was the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternatives were thoroughly explored or if this was a strategic decision based on existing capabilities or prior development.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and prevent overruns?
Cost Plus Fixed Fee contracts incentivize the contractor to control costs to maximize their fixed fee. However, they also carry the risk of cost growth if the initial estimates are inaccurate or if scope changes occur. Effective management by the DCMA would involve rigorous monitoring of expenditures and contractor performance against the baseline.
What are the long-term benefits and return on investment for the Environmental Satellite Receiver Program?
The long-term benefits likely include improved environmental data collection, enhanced climate modeling, and support for disaster response. The return on investment is measured not just in financial terms but also in the value of the data for scientific discovery, policy-making, and national security applications.
Industry Classification
NAICS: Public Administration › Space Research and Technology › Space Research and Technology
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003906R0099
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 6125 E 21ST ST, INDIANAPOLIS, IN, 46219
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: $23,293,095
Exercised Options: $15,788,085
Current Obligation: $13,874,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-03-23
Current End Date: 2012-02-03
Potential End Date: 2012-02-03 00:00:00
Last Modified: 2024-11-01
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