DoD Spends $45M on Subhdr Modification Kits from Raytheon Company
Contract Overview
Contract Amount: $45,006,427 ($45.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2015-12-30
Contract Duration: 2,648 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SUBHDR MODIFICATION KITS
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $45.0 million to RAYTHEON COMPANY for work described as: SUBHDR MODIFICATION KITS Key points: 1. Significant contract value of $45M awarded to Raytheon Company. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration was substantial at 2648 days. 4. The procurement falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: fair
The total award amount of $45M over approximately 7 years suggests a moderate annual spend. Without specific unit pricing or comparison data, it's difficult to definitively assess value, but the duration implies a sustained need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible prices through market forces.
Public Impact
Taxpayers funded a significant $45M expenditure for specialized modification kits. The contract supported a major defense contractor, Raytheon Company. The duration of the contract suggests a long-term need for these specific components within the Navy's operations. The procurement is linked to critical navigation and guidance systems for naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may indicate potential for cost overruns or scope creep.
- Lack of specific per-unit cost data hinders detailed value assessment.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps control costs.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to navigation and guidance systems. Spending benchmarks in this area can vary widely based on technological advancements and specific system requirements.
Small Business Impact
No specific information is available regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded under full and open competition, which implies a degree of oversight in the bidding process. However, the long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Limited detail on specific product functionality.
- No explicit mention of small business utilization.
- Lack of per-unit cost data for detailed value analysis.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.0 million to RAYTHEON COMPANY. SUBHDR MODIFICATION KITS
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 $45.0 million.
What is the period of performance?
Start: 2008-09-29. End: 2015-12-30.
What was the specific nature of the 'Subhdr Modification Kits' and their impact on the performance or lifespan of the systems they were integrated into?
The provided data does not detail the specific function or impact of the 'Subhdr Modification Kits.' Further investigation into the technical specifications and operational requirements would be necessary to understand their contribution to the performance, reliability, or longevity of the navigation, guidance, or related systems within the Department of the Navy's assets.
Given the $45M award and long duration, what was the average annual expenditure, and how does this compare to similar procurements for navigation and guidance system components?
The total award of $45,006,427.17 over a period of 2648 days (approximately 7.25 years) equates to an average annual expenditure of roughly $6.2 million. Benchmarking this against similar procurements for navigation and guidance system components would require access to a broader dataset of defense contracts, including details on the specific types of systems and the quantities of components procured.
Were there any performance issues or contract modifications that significantly altered the initial scope or cost during the contract's lifecycle?
The provided data indicates the contract was awarded in 2008 and ended in 2015, with a duration of 2648 days. It does not specify any contract modifications or performance issues. A deeper dive into contract modification history and performance reports would be required to ascertain if the scope or cost deviated significantly from the original terms.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003908R0021
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $47,931,981
Exercised Options: $45,167,324
Current Obligation: $45,006,427
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-29
Current End Date: 2015-12-30
Potential End Date: 2015-12-30 00:00:00
Last Modified: 2016-03-02
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