DoD Awards $77.2M to Raytheon for MTS FLIR PBL Second Delivery Order

Contract Overview

Contract Amount: $77,215,387 ($77.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $212.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MTS FLIR PBL SECOND DELIVERY ORDER.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $77.2 million to RAYTHEON COMPANY for work described as: MTS FLIR PBL SECOND DELIVERY ORDER. Key points: 1. Significant award to a major defense contractor. 2. Focus on electro-optical/infrared (EO/IR) systems. 3. Potential for follow-on orders and sustainment. 4. Limited competition raises cost efficiency questions.

Value Assessment

Rating: fair

The award value is substantial, but without a competitive benchmark, assessing its pricing fairness is difficult. The firm-fixed-price contract type offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition approach. This lack of competition may have led to higher prices than could have been achieved through a more open bidding process.

Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to a less efficient use of resources.

Public Impact

Supports critical defense capabilities for the Navy. Ensures continued availability of advanced sensor technology. Impacts the defense industrial base, particularly in EO/IR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Sole-source award

Positive Signals

Supports critical defense mission
Firm-fixed-price contract

Sector Analysis

This award falls within the defense sector, specifically related to electronic components and systems. Spending in this area is driven by national security needs and technological advancements in surveillance and targeting.

Small Business Impact

The data indicates this award went to Raytheon Company, a large prime contractor. There is no direct indication of small business participation in this specific award, suggesting potential for subcontracting opportunities.

Oversight & Accountability

Oversight is crucial for sole-source awards to ensure fair pricing and performance. The Department of the Navy is responsible for monitoring this contract's execution and value.

Related Government Programs

Other Electronic Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost creep without oversight.
Dependency on a single contractor.
Limited transparency on price justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.2 million to RAYTHEON COMPANY. MTS FLIR PBL SECOND DELIVERY ORDER.

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 $77.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

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 stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Price reasonableness is usually determined through methods like historical price analysis, comparison to similar items, or cost analysis, though without competition, these methods may be less robust.

What are the risks associated with a sole-source procurement for advanced sensor systems?

Sole-source procurements carry risks of inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation incentives for the contractor, and potential for less stringent performance standards if oversight is inadequate. Ensuring the technology remains current and supportable is also a concern.

How does this award contribute to the overall effectiveness of the Navy's surveillance and targeting capabilities?

This award directly supports the acquisition or sustainment of the Multi-Spectral Targeting System (MTS) FLIR (Forward-Looking Infrared) system, a critical component for intelligence, surveillance, and reconnaissance (ISR) platforms. Ensuring the availability and performance of these systems enhances the Navy's ability to detect, identify, and track targets, thereby improving operational effectiveness and situational awareness.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

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: 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: $77,215,387

Exercised Options: $77,215,387

Current Obligation: $77,215,387

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $11,548,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038322DTH01

IDV Type: IDC

Timeline