DoD's $150M Transmitter Subassembly Contract Awarded to Raytheon Company

Contract Overview

Contract Amount: $15,044,642 ($15.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-03-18

End Date: 2026-06-30

Contract Duration: 2,295 days

Daily Burn Rate: $6.6K/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 $15.0 million to RAYTHEON COMPANY for work described as: TRANSMITTER SUBASSE Key points: 1. Significant contract value of $150.4 million for transmitter subassemblies. 2. Awarded to a single, large defense contractor, Raytheon Company. 3. Potential risk associated with sole-source or limited competition for critical components. 4. Spending falls within the Aircraft Manufacturing sector, indicating defense-related procurement.

Value Assessment

Rating: fair

The contract value of $150.4 million is substantial. Without specific unit cost data or benchmarks for similar transmitter subassemblies, a precise value assessment is difficult. However, the lack of competition suggests potential for higher pricing than might be achieved in a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was marked as 'NOT COMPETED', indicating a limited competition approach. This method can lead to less aggressive price discovery compared to full and open competition, potentially resulting in higher costs for the government.

Taxpayer Impact: The lack of competitive bidding on this $150.4 million contract may result in taxpayers paying a premium for the transmitter subassemblies.

Public Impact

Taxpayers may be overpaying for essential defense components due to limited competition. The long contract duration (ending June 2026) suggests a sustained need for these subassemblies. Dependence on a single supplier like Raytheon could pose supply chain risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long-term contract duration

Positive Signals

Award to established defense contractor
Clear contract end date

Sector Analysis

This contract for transmitter subassemblies falls under the Aircraft Manufacturing sector, specifically NAICS code 336411. Spending in this sector is heavily influenced by defense budgets and the need for advanced aerospace components.

Small Business Impact

The award went to Raytheon Company, a large prime contractor, with no indication of small business subcontracting in the provided data. This suggests limited direct opportunity for small businesses on this specific contract.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the pricing is fair and reasonable and that future procurements explore competitive options where feasible.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Sole-source dependency
Limited transparency on justification for 'NOT COMPETED'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 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 $15.0 million.

What is the period of performance?

Start: 2020-03-18. End: 2026-06-30.

What is the specific technical requirement for these transmitter subassemblies, and why was competition limited?

The specific technical requirements are not detailed in the provided data. However, limited competition often arises from unique technical specifications, proprietary technology, or urgent needs where only one or a few sources can meet the demand. Understanding the technical necessity is crucial to justifying the lack of competition and assessing potential risks.

What is the estimated cost savings if this contract had been fully competed?

Estimating cost savings without a competitive benchmark is speculative. However, studies consistently show that competitive bidding can yield significant savings, often ranging from 10% to 30% or more compared to sole-source or limited-source awards. For this $150.4 million contract, potential savings could be in the tens of millions of dollars.

Are there plans to transition to a more competitive procurement strategy for future needs of these subassemblies?

The provided data does not indicate future procurement strategies. It is advisable for the Department of the Navy to assess the market for potential competition as the contract nears its end or if technology evolves. Exploring options for future competitive solicitations would be prudent to ensure better value and mitigate long-term sole-source risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: $15,044,642

Exercised Options: $15,044,642

Current Obligation: $15,044,642

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $116,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038318GN701

IDV Type: BOA

Timeline