DoD Awards $42.9M Radar Transmitter Contract to Raytheon Company, No Competition

Contract Overview

Contract Amount: $42,942,500 ($42.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-03-24

End Date: 2026-04-30

Contract Duration: 1,863 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRANSMITTER,RADAR

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46219

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $42.9 million to RAYTHEON COMPANY for work described as: TRANSMITTER,RADAR Key points: 1. Significant award for radar transmitters, a critical component in defense systems. 2. Sole-source award to Raytheon Company raises questions about price discovery. 3. Potential risk of inflated costs due to lack of competitive bidding. 4. The contract falls within the Aircraft Manufacturing sector, indicating a focus on aviation technology.

Value Assessment

Rating: questionable

The contract's value of $42.9M for radar transmitters is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts. Benchmarking against other sole-source awards for comparable systems is necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. The lack of competition limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to reduce prices.

Public Impact

Impacts national defense capabilities through advanced radar technology. Potential for increased defense spending without guaranteed best value. Raytheon Company benefits from a guaranteed contract without competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing

Positive Signals

Award to established defense contractor
Addresses critical defense need

Sector Analysis

This contract for radar transmitters falls under the Aircraft Manufacturing sector. Spending in this sector is often driven by defense needs and technological advancements. Benchmarks for similar sole-source contracts would be useful for comparison.

Small Business Impact

The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. Accountability for cost justification and performance metrics is crucial.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Potential for price inflation
Lack of competitive benchmarking
Limited transparency on cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.9 million to RAYTHEON COMPANY. TRANSMITTER,RADAR

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 $42.9 million.

What is the period of performance?

Start: 2021-03-24. End: 2026-04-30.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The price is usually determined through negotiation and comparison with historical data or independent cost estimates. Without detailed documentation, it's challenging to verify the fairness and reasonableness of the price in this instance.

What are the specific risks associated with awarding a contract of this magnitude without competition?

The primary risk is paying a premium due to the absence of competitive pressure, potentially leading to cost overruns and inefficient use of taxpayer funds. There's also a risk of reduced innovation if the contractor faces no incentive to improve performance or reduce costs. Furthermore, it can limit opportunities for other capable suppliers to enter the market.

How does this contract contribute to the overall effectiveness of the Department of the Navy's radar capabilities?

This contract provides essential radar transmitters, which are critical components for the operational effectiveness of various naval platforms. Assuming the technology meets specifications, it directly supports the Navy's mission by enhancing surveillance, targeting, and communication capabilities. The long-term effectiveness depends on the reliability and performance of the delivered systems.

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

Solicitation ID: N0038321RD066

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: $57,256,666

Exercised Options: $57,256,666

Current Obligation: $42,942,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038318GN701

IDV Type: BOA

Timeline