DoD Awards $9.88M for CISP WIRED CHASSIS to Raytheon Company, Lacking Competition
Contract Overview
Contract Amount: $9,877,587 ($9.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-06-27
End Date: 2026-01-30
Contract Duration: 948 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CISP WIRED CHASSIS
Place of Performance
Location: FOREST, SCOTT County, MISSISSIPPI, 39074
Plain-Language Summary
Department of Defense obligated $9.9 million to RAYTHEON COMPANY for work described as: CISP WIRED CHASSIS Key points: 1. Significant award to a single large contractor, Raytheon Company. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract duration of 948 days suggests a substantial, long-term need. 4. Awarded by the Department of the Navy, indicating defense sector focus.
Value Assessment
Rating: questionable
The award of $9.88 million without competition makes a direct pricing assessment difficult. Benchmarking against similar contracts for specialized chassis components is challenging due to the lack of competitive bids to establish a market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of competitive bidding limits price discovery and may result in a higher cost to the government than if multiple vendors had vied for the contract.
Taxpayer Impact: The lack of competition for this $9.88 million contract potentially means taxpayers are paying more than necessary for these wired chassis.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The Department of the Navy's procurement process for this item warrants scrutiny. Dependence on a single contractor for critical components can pose supply chain risks. Lack of transparency in pricing due to no competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Award to established contractor
- Clear contract duration and end date
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically for the Department of the Navy. Defense sector spending on specialized components can be substantial, but competitive bidding is crucial for cost efficiency.
Small Business Impact
The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not competed and if adequate justification exists.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost determination
- Supply chain risk due to single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ms, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to RAYTHEON COMPANY. CISP WIRED CHASSIS
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 $9.9 million.
What is the period of performance?
Start: 2023-06-27. End: 2026-01-30.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further documentation, it's unclear why this $9.88 million contract for CISP WIRED CHASSIS was not competed. Agencies must demonstrate that competition is not feasible or would not be in the government's best interest.
How does the unit cost of these wired chassis compare to similar components procured competitively by other defense agencies?
A direct comparison of unit costs is difficult without knowing the specific technical requirements and quantities. However, the absence of competition inherently removes the downward price pressure that competitive bidding provides, suggesting this contract may be priced higher than a competed equivalent.
What are the potential risks associated with relying on a single supplier for these critical aircraft parts over the contract's duration?
Sole-source contracts create significant supply chain risks, including potential production delays, price increases, and limited flexibility if requirements change. The government becomes dependent on the contractor's performance and pricing, with few alternatives if issues arise during the contract's 948-day term.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $9,877,587
Exercised Options: $9,877,587
Current Obligation: $9,877,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038319GUX01
IDV Type: BOA
Timeline
Start Date: 2023-06-27
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-10
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