Navy awards $58.9M contract to Raytheon for wireless communications equipment
Contract Overview
Contract Amount: $58,901,818 ($58.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2023-12-31
Contract Duration: 364 days
Daily Burn Rate: $161.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NAVY ACQUISITION
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $58.9 million to RAYTHEON COMPANY for work described as: NAVY ACQUISITION Key points: 1. The contract is for radio and television broadcasting and wireless communications equipment. 2. Raytheon Company is the sole awardee, indicating a lack of competition. 3. The firm fixed price contract type aims to control costs. 4. This award falls under the Department of Defense's acquisition activities.
Value Assessment
Rating: fair
The contract value of $58.9 million is significant. Without specific benchmarks for similar wireless communications equipment from the Navy, a precise pricing assessment is difficult. However, the lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this equipment.
Public Impact
Ensures the Navy has necessary wireless communications equipment. Potential for increased costs due to lack of competition. Supports Raytheon Company's manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
Positive Signals
- Firm fixed price contract
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. Spending in this sector for defense is crucial for maintaining communication capabilities, but competitive bidding is vital to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors. Further analysis would be needed to determine the overall impact on small business participation in this procurement category.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the lack of competition and ensure fair pricing was achieved. Accountability for sole-source awards is critical for responsible spending.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Limited transparency in award justification
- No small business participation indicated
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.9 million to RAYTHEON COMPANY. NAVY ACQUISITION
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 $58.9 million.
What is the period of performance?
Start: 2023-01-01. End: 2023-12-31.
What was the justification for not competing this contract, and were alternative sources considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Agencies must document this justification thoroughly to ensure transparency and accountability, and to demonstrate that all reasonable efforts were made to consider other potential sources.
How does the price of this contract compare to similar wireless communications equipment procured by other government agencies or in the commercial market?
Without access to specific pricing data for comparable equipment from other agencies or the commercial market, it is difficult to definitively assess the value for money. However, the absence of competition inherently limits the ability to benchmark prices effectively, raising a potential risk of the government paying a premium.
What is the expected impact of this equipment on the Navy's operational effectiveness and communication capabilities?
This equipment is expected to enhance or maintain the Navy's operational effectiveness by providing essential wireless communication capabilities. The specific impact would depend on the nature of the equipment and its intended use within naval operations, contributing to command, control, and situational awareness.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 6380 HOLLISTER AVE, GOLETA, CA, 93117
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: $78,678,384
Exercised Options: $78,678,384
Current Obligation: $58,901,818
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,184,125
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038322DT001
IDV Type: IDC
Timeline
Start Date: 2023-01-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2023-12-11
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