DoD's $29M Radome Kits Contract with Raytheon: A Firm Fixed Price Deal with Limited Small Business Participation
Contract Overview
Contract Amount: $29,023,051 ($29.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-12-31
End Date: 2019-04-26
Contract Duration: 2,307 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUBHDR REPLACEMENT RADOME KITS
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $29.0 million to RAYTHEON COMPANY for work described as: SUBHDR REPLACEMENT RADOME KITS Key points: 1. The Department of Defense awarded a $29 million contract for SUBHDR REPLACEMENT RADOME KITS. 2. Raytheon Company was the sole awardee under a full and open competition. 3. The contract, valued at $29,023,051, was a firm fixed price definitive contract. 4. The contract duration was 2307 days, ending in April 2019. 5. Small business participation was not a stated factor in this award.
Value Assessment
Rating: fair
The contract value of $29 million over approximately 6 years suggests a moderate annual spend. Without specific per-unit data or comparison to similar radome kits, a precise pricing assessment is difficult. However, the firm fixed price structure implies the government sought cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. The use of a definitive contract suggests a well-defined scope of work. The firm fixed price type aimed to establish a ceiling on costs, but the impact on price discovery depends on the competitive landscape during bidding.
Taxpayer Impact: The firm fixed price contract provided cost certainty for taxpayers, assuming the competition effectively drove down the price to a reasonable level for the required radome kits.
Public Impact
Ensures operational readiness for naval aircraft by providing essential radome replacement kits. Supports a major defense contractor, Raytheon Company, contributing to the aerospace and defense sector. The long contract duration indicates a sustained need for these components within the Navy's operations. Lack of explicit small business involvement may limit opportunities for smaller specialized firms in this procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited small business participation
- Lack of detailed cost breakdown for per-unit analysis
Positive Signals
- Full and open competition utilized
- Firm fixed price contract for cost certainty
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense, supporting advanced military platforms. Benchmarks for similar complex system components can vary widely based on technological sophistication and volume.
Small Business Impact
The data indicates that small business participation was not a significant factor in this contract award, as the 'sb' field is false. This suggests that larger prime contractors likely fulfilled the requirement, potentially limiting subcontracting opportunities for small businesses in this specific procurement.
Oversight & Accountability
The contract was awarded under full and open competition, implying a structured process. However, further oversight details regarding performance monitoring, quality assurance, and adherence to the firm fixed price would be necessary to fully assess accountability.
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
- Potential for limited competition impact on final price
- Lack of small business participation opportunities
- No detailed cost breakdown provided for per-unit analysis
- Long contract duration may mask potential for cost overruns if not managed effectively
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.0 million to RAYTHEON COMPANY. SUBHDR REPLACEMENT RADOME 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 $29.0 million.
What is the period of performance?
Start: 2012-12-31. End: 2019-04-26.
What was the rationale for selecting Raytheon Company as the awardee under full and open competition, and were there any specific technical or performance advantages cited?
While the data confirms full and open competition, it does not specify the rationale for selecting Raytheon. Typically, award decisions in such scenarios are based on a combination of factors including technical capability, past performance, and price. Without the source selection document, it's impossible to know the precise reasons Raytheon was chosen over other potential bidders.
Given the firm fixed price contract, how was the initial price determined to ensure it represented fair value for the government and taxpayers?
The determination of a fair and reasonable price for a firm fixed price contract, especially under full and open competition, usually involves a thorough cost analysis of the offeror's proposed price. This can include reviewing direct costs, indirect costs, profit, and comparing it against historical data, other government contracts, or commercial prices if available. The competitive nature of the bidding process itself is intended to drive the price down.
What is the typical lifespan and obsolescence rate for SUBHDR REPLACEMENT RADOME KITS, and does this contract's duration align with expected replacement cycles?
The lifespan and obsolescence rate for radome kits depend heavily on the specific aircraft platform, operating environment, and technological advancements. A contract duration of over 2300 days (approximately 6.3 years) suggests a sustained need. This aligns with typical sustainment and replacement cycles for major aircraft components, implying the kits are not subject to rapid technological obsolescence within this timeframe.
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: N0003912R0001
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: $29,023,051
Exercised Options: $29,023,051
Current Obligation: $29,023,051
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $5,404,392
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-12-31
Current End Date: 2019-04-26
Potential End Date: 2019-04-26 00:00:00
Last Modified: 2018-08-29
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