DoD Awards Raytheon $32.8M Contract for Wireless Communications Equipment
Contract Overview
Contract Amount: $32,839,953 ($32.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2014-12-18
End Date: 2021-01-16
Contract Duration: 2,221 days
Daily Burn Rate: $14.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GBS CONTRACT AWARD
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to RAYTHEON COMPANY for work described as: GBS CONTRACT AWARD Key points: 1. Contract awarded to Raytheon Company for wireless communications equipment. 2. Full and open competition was utilized for this award. 3. The contract duration is 2221 days. 4. The contract type is Firm Fixed Price. 5. This award falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing NAICS code.
Value Assessment
Rating: good
The contract value of $32.8M over approximately 6 years suggests a reasonable annual spend. Benchmarking against similar large-scale defense contracts for specialized communications equipment would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source procurement.
Public Impact
Ensures the Department of the Navy has necessary wireless communications equipment. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. The long duration suggests a sustained need for these capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to manufacturing of wireless communications equipment. Spending in this area is critical for national security and technological advancement.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation in the supply chain for this contract.
Oversight & Accountability
Standard DoD oversight mechanisms would apply to this contract. The long duration necessitates ongoing monitoring to ensure performance and adherence to contract terms.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Potential for supply chain vulnerabilities impacting delivery.
- Need for ongoing oversight to ensure performance and cost control.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to RAYTHEON COMPANY. GBS CONTRACT AWARD
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 $32.8 million.
What is the period of performance?
Start: 2014-12-18. End: 2021-01-16.
What is the specific type of wireless communications equipment being procured, and how does it align with current military needs?
The NAICS code 334220 covers Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. While the specific equipment isn't detailed, it likely pertains to secure, robust communication systems essential for naval operations. Understanding the technological specifications and their relevance to evolving military requirements is crucial for assessing long-term value and avoiding obsolescence.
What are the key performance metrics and potential risks associated with this long-term contract for specialized equipment?
Key performance metrics would likely include reliability, security, interoperability, and timely delivery. Potential risks involve technological obsolescence, supply chain disruptions, cost overruns if not strictly managed under the fixed-price structure, and the contractor's ability to meet evolving operational demands over the contract's multi-year duration.
How does the $32.8M contract value compare to similar procurements for comparable wireless communication systems within the DoD?
Benchmarking this $32.8M contract against similar procurements is essential for evaluating its cost-effectiveness. Factors like system complexity, technological sophistication, and quantity ordered will influence comparisons. A favorable comparison would indicate competitive pricing, while a higher cost might warrant further investigation into the specific requirements and market conditions.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003913R0063
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 22260 PACIFIC BLVD, DULLES, VA, 20166
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: $39,532,491
Exercised Options: $33,614,608
Current Obligation: $32,839,953
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-12-18
Current End Date: 2021-01-16
Potential End Date: 2021-01-16 00:00:00
Last Modified: 2022-04-02
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