Raytheon Company awarded $11.4M contract for antenna control elements by the Department of the Navy

Contract Overview

Contract Amount: $11,403,124 ($11.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2026-05-31

Contract Duration: 982 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ANTENNA CONTROL ELE

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to RAYTHEON COMPANY for work described as: ANTENNA CONTROL ELE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of 982 days suggests a need for sustained supply. 3. The contract is for aircraft parts, indicating a role in aviation readiness. 4. Awarded to a large, established defense contractor, suggesting a focus on proven capabilities. 5. The fixed-price nature of the contract aims to control costs for the government. 6. Geographic location of performance in Texas may indicate specific facility needs.

Value Assessment

Rating: fair

The contract value of $11.4 million for antenna control elements appears to be within a reasonable range for specialized aerospace components. However, without specific details on the quantity, complexity, and exact specifications of the antenna control elements, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source procurements for comparable components would be necessary for a more definitive evaluation. The fixed-price contract type is a positive indicator for cost control, assuming the initial price was negotiated effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was solicited. This approach is typically used when there is a unique capability or proprietary technology involved, or in situations where only one source can fulfill the requirement. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices through market forces. The justification for sole-source procurement would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pricing, potentially leading to higher costs for taxpayers compared to a competed procurement. This reduces the incentive for contractors to offer their best prices when they are the only option.

Public Impact

The Department of the Navy benefits from the acquisition of critical antenna control elements for its aircraft. This contract supports the operational readiness and effectiveness of naval aviation platforms. The primary beneficiaries are the naval aviation units that rely on functioning communication and sensor systems. Work is expected to be performed in Texas, potentially impacting the local aerospace workforce in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if initial price negotiation was not robust.
Dependence on a single contractor for critical components.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Award to an established contractor suggests a focus on reliability and performance.
Contract duration indicates a long-term need, potentially aligning with fleet sustainment.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and long product lifecycles. Contracts for aircraft parts, such as antenna control elements, are crucial for maintaining the operational capabilities of military fleets. The market for these specialized components is often dominated by a few large, established prime contractors and their specialized subcontractors. Spending in this area is driven by defense modernization efforts, readiness requirements, and the sustainment of existing platforms. This contract fits within the broader category of aircraft parts manufacturing and support services.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans specifically targeting small businesses in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Raytheon Company voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting goals would be needed to assess any potential indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The fixed-price nature of the contract provides some level of cost oversight. Transparency regarding the justification for the sole-source award and the negotiation process would be key to assessing accountability. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Aircraft Parts Manufacturing
Aerospace and Defense Equipment
Naval Aviation Systems
Electronic Components

Risk Flags

Sole-source award
Potential for price escalation without competition
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to RAYTHEON COMPANY. ANTENNA CONTROL ELE

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: 2023-09-22. End: 2026-05-31.

What is the specific technical function and criticality of these 'ANTENNA CONTROL ELE' components within naval aircraft systems?

The 'ANTENNA CONTROL ELE' likely refers to electronic components essential for the operation and steering of antennas on naval aircraft. These could be part of communication systems, radar, electronic warfare suites, or other sensor platforms. Their criticality stems from enabling vital functions such as data transmission, target acquisition, navigation, and situational awareness. Without these components, the effectiveness and operational capability of the aircraft could be severely compromised, impacting mission success and crew safety. The specific function would depend on the type of antenna system they are integrated into, ranging from simple directional adjustments to complex phased-array steering.

How does the $11.4 million contract value compare to historical spending on similar antenna control elements by the Department of the Navy or other defense agencies?

A comprehensive comparison of the $11.4 million contract value requires access to historical procurement data for similar antenna control elements. This would involve searching databases for contracts with comparable Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes, focusing on components with similar technical specifications and complexity. Benchmarking against sole-source awards for specialized electronic or aerospace components is also relevant. Without this comparative data, it is difficult to definitively state whether $11.4 million represents a high, low, or average expenditure. Factors such as quantity, technological sophistication, and the specific platform the components are intended for significantly influence pricing.

What is Raytheon Company's track record and past performance specifically related to the manufacturing and delivery of antenna control elements or similar aerospace electronics?

Raytheon Company, now part of RTX, is a major defense contractor with extensive experience in aerospace and defense electronics, including radar, communications, and electronic warfare systems. Their track record in manufacturing and delivering complex electronic components for military aircraft is generally considered strong. However, specific past performance data for 'ANTENNA CONTROL ELE' would need to be reviewed through contract performance reports (e.g., CPARS) and other government databases. This would assess their history of on-time delivery, quality adherence, and overall customer satisfaction for similar products. Given their size and scope, it is probable they have supplied such components for various platforms.

What are the primary risks associated with this sole-source contract, and what mitigation strategies are in place?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, limited flexibility in adapting to evolving technological requirements, and a single point of failure if Raytheon Company experiences production issues. Mitigation strategies typically involve robust initial price negotiation, detailed technical specifications to ensure the components meet current and future needs, and strong contract management oversight. The government may also require Raytheon to provide detailed cost breakdowns and engage in regular performance reviews. Furthermore, the government might explore developing alternative sources or in-house capabilities over the long term to reduce sole-source dependency.

What is the historical spending trend for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413) by the Department of the Navy over the past five years?

Analyzing the historical spending trend for NAICS 336413 ('Other Aircraft Parts and Auxiliary Equipment Manufacturing') by the Department of the Navy requires accessing and aggregating procurement data over the specified period. This would involve querying federal procurement databases (like FPDS or SAM.gov) for all contracts awarded under this NAICS code by the Navy. The data would then be analyzed to identify the total dollar value of contracts awarded each fiscal year, looking for patterns of increase, decrease, or stability. Such an analysis would provide context for the current $11.4 million award, indicating whether spending in this category is growing or shrinking and highlighting the Navy's overall investment in this sector.

What is the significance of the contract being awarded under a 'FIRM FIXED PRICE' (FFP) contract type for this specific procurement?

The Firm Fixed Price (FFP) contract type is significant because it places the majority of the risk on the contractor (Raytheon Company) to control costs and perform the work within the agreed-upon price. For the government, this provides cost certainty, as the total price is established upfront and is not subject to upward adjustment based on the contractor's actual costs. This is generally advantageous for the government when the scope of work is well-defined and the risks are manageable. For antenna control elements, where specifications can be precise, FFP is a common and suitable contract type, encouraging contractor efficiency and minimizing the need for extensive cost audits.

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: RTX Corp

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: $11,403,124

Exercised Options: $11,403,124

Current Obligation: $11,403,124

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $95,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038319GPF01

IDV Type: BOA

Timeline