DoD Awards $6.9M for Signal Converters to Raytheon Company, No Competition Identified
Contract Overview
Contract Amount: $6,896,937 ($6.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-09-19
End Date: 2026-03-01
Contract Duration: 894 days
Daily Burn Rate: $7.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONVERTER,SIGNAL DA
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $6.9 million to RAYTHEON COMPANY for work described as: CONVERTER,SIGNAL DA Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises concerns about potential overpricing. 3. Contract duration extends over two years, impacting long-term budget planning. 4. Sector focus on aircraft parts and auxiliary equipment.
Value Assessment
Rating: questionable
The contract value of $6.9 million for signal converters lacks sufficient comparative data due to the absence of competition. Without benchmarks from similar sole-source or limited-competition awards, assessing fair pricing is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited-competition award. The lack of competitive bidding limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these signal converters.
Public Impact
Potential for increased defense spending due to non-competitive awards. Impact on the supply chain for specialized electronic components. Need for enhanced oversight to ensure fair pricing in sole-source procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Award to established contractor
- Clear delivery timeline
Sector Analysis
This award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often driven by specific platform needs and technological advancements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to Raytheon Company, a large prime contractor, suggests limited direct opportunity for small businesses on this specific procurement.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source procurement is valid and that the pricing is fair and reasonable.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- Dependency on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to RAYTHEON COMPANY. CONVERTER,SIGNAL DA
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 $6.9 million.
What is the period of performance?
Start: 2023-09-19. End: 2026-03-01.
What is the specific technical justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique technical requirements, proprietary technology, or the unavailability of alternative solutions from other vendors. Without specific details from the contracting agency, it's difficult to ascertain the precise technical rationale. However, such justifications are crucial for ensuring that non-competitive awards are made only when truly necessary and in the best interest of the government.
How does the government ensure fair and reasonable pricing when competition is not feasible?
When competition is not feasible, the government relies on various methods to ensure fair and reasonable pricing. This includes conducting thorough cost and price analyses, reviewing the contractor's cost proposals, obtaining certified cost or pricing data, and comparing prices to historical data or commercial item prices if applicable. Independent government cost estimates are also developed to serve as a benchmark.
What is the potential impact of this long-term contract on future technological advancements in signal converters?
A long-term, sole-source contract can potentially stifle innovation by reducing the incentive for the awarded contractor to invest heavily in developing next-generation technologies, as their market is secured. Conversely, it can provide stable funding for the contractor to focus on refining existing technology. The impact depends on the contractor's internal R&D strategy and the government's requirements for future upgrades.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: IT AND TELECOM - STORAGE
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: $6,896,937
Exercised Options: $6,896,937
Current Obligation: $6,896,937
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $917,116
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038319GUX01
IDV Type: BOA
Timeline
Start Date: 2023-09-19
Current End Date: 2026-03-01
Potential End Date: 2026-03-02 00:00:00
Last Modified: 2026-01-15
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