DoD Awards $23.3M for Aircraft Transmitters to Raytheon Company, No Competition

Contract Overview

Contract Amount: $23,287,842 ($23.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2018-12-21

End Date: 2024-06-28

Contract Duration: 2,016 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRANSMITTER SUBASSE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to RAYTHEON COMPANY for work described as: TRANSMITTER SUBASSE Key points: 1. Significant contract value of $23.3 million awarded. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Aircraft manufacturing sector sees substantial government spending. 4. Long contract duration of nearly 6 years impacts value assessment.

Value Assessment

Rating: questionable

The contract value of $23.3 million for aircraft transmitters is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar procurements.

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 method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for this $23.3 million contract may result in taxpayers paying a premium for the required aircraft transmitters.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The Department of the Navy is procuring critical aircraft components. Long-term contract could indicate a specialized or proprietary need, but also a missed opportunity for cost savings. Raytheon Company is a major defense contractor, suggesting established relationships.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
High contract value

Positive Signals

Procurement supports critical aircraft manufacturing
Firm Fixed Price contract type can provide cost certainty

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a significant area of defense spending. Benchmarks for similar transmitter procurements are difficult to establish without competitive data.

Small Business Impact

The data does not indicate any participation or subcontracting by small businesses in this sole-source award to Raytheon Company.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that justification for non-competition is robust.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to RAYTHEON COMPANY. TRANSMITTER SUBASSE

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 $23.3 million.

What is the period of performance?

Start: 2018-12-21. End: 2024-06-28.

What is the justification for the sole-source award of this $23.3 million contract to Raytheon Company?

The justification for a sole-source award typically involves factors such as unique technical capabilities, proprietary technology, or the unavailability of other sources. Without specific documentation, it's presumed the Department of the Navy determined Raytheon was the only viable option for these specific aircraft transmitters, potentially due to specialized requirements or existing system integration.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk is the potential for inflated pricing due to the absence of competitive pressure. Other risks include reduced innovation, vendor lock-in, and a lack of transparency in the procurement process. For a $23.3 million contract, these risks are amplified, necessitating strong oversight to ensure fair pricing and performance.

How does the long contract duration (2018-2024) impact the effectiveness of this procurement?

A long duration can be effective if it ensures a stable supply chain for critical components over an extended period, potentially reducing administrative burden. However, it also increases the risk of technological obsolescence and limits the government's ability to benefit from market price fluctuations or new technological advancements that may emerge during the contract term.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: 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: $29,210,031

Exercised Options: $29,210,031

Current Obligation: $23,287,842

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038318GN701

IDV Type: BOA

Timeline