DoD awards $11.35M for Aircraft Parts to Raytheon Company, a non-competed delivery order

Contract Overview

Contract Amount: $11,350,221 ($11.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-12-16

End Date: 2026-10-15

Contract Duration: 1,764 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: POD,AIRCRAFT

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75070

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to RAYTHEON COMPANY for work described as: POD,AIRCRAFT Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense - Aircraft Parts Manufacturing.

Value Assessment

Rating: questionable

The contract is a delivery order under a larger contract, making direct comparison difficult. However, the lack of competition for this specific order suggests potential for inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and may result in the government paying more than if multiple vendors had bid.

Taxpayer Impact: The lack of competition could lead to taxpayers bearing a higher cost for these aircraft parts.

Public Impact

Ensures continued availability of critical aircraft parts for the Navy. Potential for increased defense spending due to non-competitive award. Highlights reliance on specific contractors for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Long contract duration

Positive Signals

Supports critical defense needs
Established contractor

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this sector is often characterized by high R&D costs and specialized production requirements.

Small Business Impact

The data indicates that small businesses were not involved in this specific award, as the contractor is Raytheon Company. Further analysis would be needed to determine if small businesses are subcontracting.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of Defense should document the justification for the sole-source award thoroughly.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for price inflation without competitive pressure.
Long contract duration may not reflect current market conditions.
Lack of transparency in price negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to RAYTHEON COMPANY. POD,AIRCRAFT

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 $11.4 million.

What is the period of performance?

Start: 2021-12-16. End: 2026-10-15.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of alternative sources. The Department of Defense should have detailed documentation supporting this decision. To ensure fair pricing, they may rely on historical pricing data, independent cost estimates, or price analysis techniques, even without direct competition.

What is the risk of cost overruns or inefficiencies given the lack of competitive bidding for these aircraft parts?

The primary risk is that the absence of competition allows the sole-source provider to set prices without market pressure, potentially leading to higher costs than if multiple bids were solicited. Inefficiencies could arise if the contractor faces less incentive to optimize production processes or delivery schedules.

How does this contract contribute to the overall effectiveness and readiness of the Department of the Navy's aircraft fleet?

This contract is likely crucial for maintaining the operational readiness of specific Navy aircraft by ensuring the supply of necessary parts. The effectiveness hinges on the quality and timely delivery of these components, directly impacting the fleet's ability to perform its missions.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0038322RD044

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: $15,133,628

Exercised Options: $15,133,628

Current Obligation: $11,350,221

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $11,703,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038320GVW01

IDV Type: BOA

Timeline