DoD Awards Raytheon $23.2M for Multi-Spectral Targeting System DAS-3

Contract Overview

Contract Amount: $23,192,220 ($23.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-12-29

End Date: 2025-05-31

Contract Duration: 1,249 days

Daily Burn Rate: $18.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTI-SPECTRAL TARGETING SYSTEM DAS-3

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to RAYTHEON COMPANY for work described as: MULTI-SPECTRAL TARGETING SYSTEM DAS-3 Key points: 1. Significant award to Raytheon for advanced targeting systems. 2. Sole-source award raises questions about competition and price. 3. Long-term contract (2021-2025) suggests ongoing need. 4. Focus on advanced sensor technology for naval operations.

Value Assessment

Rating: fair

The award amount of $23.2 million for a single delivery order is substantial. Without comparable contract data or a competitive bidding process, assessing the pricing against similar systems is difficult. The firm-fixed-price contract type offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This procurement method may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competed contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Enhances naval combat capabilities with advanced targeting. Supports critical defense missions for the U.S. Navy. Potential for technological advancements in sensor systems. Long-term sustainment and upgrades may incur future costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency in pricing justification.
Long contract duration may not reflect evolving needs.

Positive Signals

Award to established defense contractor.
Supports critical military operational requirements.
Firm-fixed-price contract provides cost predictability.

Sector Analysis

This contract falls within the Defense sector, specifically in the manufacturing of advanced sensor and targeting systems. Spending in this area is driven by technological superiority and operational readiness, with significant investments often made in sole-source or limited-competition scenarios for specialized equipment.

Small Business Impact

This contract was awarded directly to Raytheon Company, a large defense contractor. There is no indication of subcontracting opportunities for small businesses within the provided data. Future analysis should explore potential set-aside opportunities.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. While justified for specialized systems, oversight should ensure the government obtained fair value and that this approach is not a pattern for less critical procurements. The Department of the Navy is responsible for oversight.

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

Sole-source procurement.
Lack of competitive pricing.
Potential for higher costs.
Limited small business participation.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to RAYTHEON COMPANY. MULTI-SPECTRAL TARGETING SYSTEM DAS-3

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 $23.2 million.

What is the period of performance?

Start: 2021-12-29. End: 2025-05-31.

What is the justification for the sole-source award of the DAS-3 targeting system?

The justification for a sole-source award typically centers on the unique capabilities of the system, proprietary technology, or the lack of other capable sources. For advanced systems like the DAS-3, the Department of Defense might argue that only Raytheon possesses the specific technical expertise and intellectual property required to fulfill the requirement, thus precluding competitive bidding.

How does the $23.2 million award compare to previous acquisitions of this system?

Without access to historical contract data or a benchmark for the DAS-3 system, it's challenging to definitively assess if $23.2 million represents a fair price. A comparative analysis against similar multi-spectral targeting systems from other vendors, or previous sole-source awards for this specific system, would be necessary to determine if the pricing is competitive or inflated.

What is the long-term cost implication for the Navy regarding the DAS-3 system?

The contract runs until May 2025, suggesting ongoing operational needs. Beyond the initial $23.2 million, potential long-term costs include sustainment, maintenance, upgrades, and potential future sole-source follow-on contracts. The firm-fixed-price nature of this delivery order limits immediate cost overruns, but the overall lifecycle cost requires further evaluation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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: $23,192,220

Exercised Options: $23,192,220

Current Obligation: $23,192,220

Subaward Activity

Number of Subawards: 73

Total Subaward Amount: $7,643,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0016417GJQ02

IDV Type: BOA

Timeline