Raytheon Awarded $23.2M for Radar Transmitters, Lacking Competition

Contract Overview

Contract Amount: $23,203,894 ($23.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-06-05

End Date: 2026-08-01

Contract Duration: 1,153 days

Daily Burn Rate: $20.1K/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: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to RAYTHEON COMPANY for work described as: TRANSMITTER, RADAR, Key points: 1. Significant contract value of $23.2 million for radar transmitters. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Potential for inflated pricing due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract's value of $23.2 million for radar transmitters is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar procurements in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Raytheon was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these radar transmitters.

Public Impact

Taxpayers may be overpaying for essential defense equipment due to a lack of competitive bidding. The sole-source award to a major defense contractor like Raytheon could stifle innovation from smaller or alternative suppliers. Dependence on a single supplier for critical radar components could pose a long-term supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Award to established defense contractor
Firm fixed price contract

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive pricing is essential to ensure efficient use of funds.

Small Business Impact

The sole-source nature of this award suggests that small businesses were not considered or given an opportunity to compete, potentially limiting their access to defense contracts.

Oversight & Accountability

The lack of competition in this sole-source award warrants further scrutiny by oversight bodies to ensure the government received fair value and that such awards are justified.

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 overpayment due to lack of price discovery.
No small business participation indicated.
Long-term reliance on a single supplier.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 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 $23.2 million.

What is the period of performance?

Start: 2023-06-05. End: 2026-08-01.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed the Department of the Navy determined Raytheon was the only viable source for these specific radar transmitters, potentially due to technical specifications or existing system integration.

What is the potential risk associated with a sole-source procurement of radar transmitters?

The primary risk of a sole-source procurement is the potential for inflated pricing, as there is no competitive pressure to drive costs down. Additionally, it can create vendor lock-in, limit technological advancement by excluding other potential innovators, and pose supply chain vulnerabilities if the sole provider faces production issues.

How does the firm fixed price (FFP) contract type impact the value assessment of this award?

A firm fixed price contract is generally favorable as it shifts the risk of cost overruns to the contractor. However, in a sole-source scenario, the 'fixed' price itself might be higher than it would be in a competitive environment. While FFP provides cost certainty, it doesn't guarantee the best possible price without competition.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $23,203,894

Exercised Options: $23,203,894

Current Obligation: $23,203,894

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $7,036,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038319GPF01

IDV Type: BOA

Timeline