DoD Awards Raytheon $18M for DC-DC Convertors, Lacking Competition

Contract Overview

Contract Amount: $18,050,324 ($18.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-03-05

End Date: 2026-01-05

Contract Duration: 2,132 days

Daily Burn Rate: $8.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONVERTOR DC TO DC,

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to RAYTHEON COMPANY for work described as: CONVERTOR DC TO DC, Key points: 1. Significant award value of $18 million for specialized aircraft parts. 2. Sole-source award to Raytheon Company raises concerns about price discovery. 3. Long contract duration of 2132 days suggests potential for cost overruns. 4. The award falls under the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $18 million for DC-DC convertors is difficult to assess without specific unit details. However, the lack of competition suggests potential for inflated pricing compared to a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these critical aircraft components.

Public Impact

Ensures continued operation of naval aircraft by providing essential electronic components. Potential for increased defense spending due to lack of competitive bidding. Supports a major defense contractor, Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Sole-source award

Positive Signals

Essential component for naval aviation

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military readiness, but competitive sourcing is key to cost efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for a sole-source procurement. Further review is needed to ensure the necessity of this approach.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition
Potential for overpricing
Long contract duration increases risk of obsolescence
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to RAYTHEON COMPANY. CONVERTOR DC TO DC,

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 $18.1 million.

What is the period of performance?

Start: 2020-03-05. End: 2026-01-05.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one responsible source can provide the required supplies or services. A thorough review of the necessity and alternatives would be prudent to ensure fair pricing and taxpayer value.

What is the potential cost impact of this sole-source award compared to a competitive process?

Without competitive bidding, the government cannot be assured of the best possible price. Historical data and market analysis suggest sole-source contracts can be 10-30% more expensive than competitively awarded ones. This could translate to millions in additional costs over the contract's life.

How will the long contract duration affect the overall value and potential for obsolescence?

A contract duration of 2132 days (nearly 6 years) for electronic components like DC-DC convertors presents risks. Technology can rapidly evolve, potentially leading to obsolescence or the need for costly upgrades. It also locks the government into a single supplier for an extended period, limiting flexibility.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $18,050,324

Exercised Options: $18,050,324

Current Obligation: $18,050,324

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,297,251

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038319DUP01

IDV Type: IDC

Timeline