Raytheon Company awarded $40M for H-60 Helicopter FLIR systems, with performance through September 2025

Contract Overview

Contract Amount: $40,061,515 ($40.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $110.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H-60 MTS FLIR PBL - PERIOD PERFORMANCE 4 DELIVERY ORDER

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $40.1 million to RAYTHEON COMPANY for work described as: H-60 MTS FLIR PBL - PERIOD PERFORMANCE 4 DELIVERY ORDER Key points: 1. Value for money assessed against comparable systems and market rates. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include reliance on a single contractor for critical components. 4. Performance context is a delivery order for existing helicopter systems. 5. Sector positioning within electronic component manufacturing for defense applications.

Value Assessment

Rating: fair

The contract value of $40 million for H-60 Helicopter FLIR systems is difficult to benchmark without specific per-unit cost data. Given the sole-source nature, a direct comparison to similar contracts is challenging. The firm-fixed-price structure provides some cost certainty, but the absence of competitive bidding raises questions about whether the government secured the best possible price. Further analysis of historical pricing for these systems would be beneficial.

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. The absence of competition limits the government's ability to explore alternative solutions or leverage market forces to drive down costs. While sole-source awards can be justified for specialized or proprietary systems, the lack of a competitive process here warrants scrutiny regarding price reasonableness.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the lack of competitive pressure on pricing.

Public Impact

The U.S. Navy benefits from the continued supply of critical Forward-Looking Infrared (FLIR) systems for its H-60 helicopters. These systems are essential for situational awareness, navigation, and targeting capabilities. The contract supports operations and readiness for naval aviation units. Workforce implications are likely within Raytheon's manufacturing and support facilities in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Potential for cost overruns without competitive pressure.
Dependence on a single supplier for critical defense technology.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award supports ongoing readiness of H-60 helicopter fleet.
Contractor has existing expertise with FLIR systems.

Sector Analysis

This contract falls within the broader defense electronics sector, specifically focusing on specialized sensor systems for military aircraft. The market for such components is often characterized by high barriers to entry due to technological complexity and stringent military specifications. Spending in this area is driven by defense modernization efforts and the need for advanced surveillance and targeting capabilities. Comparable spending benchmarks would typically involve other sole-source or limited-competition awards for similar avionics or sensor suites.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature and the specialized technology involved, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available, unless Raytheon voluntarily engages them for specific components or services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Transparency is facilitated by public contract databases, but detailed cost breakdowns and performance metrics may not be fully public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

H-60 Helicopter Modernization Programs
Defense Avionics and Sensor Systems
Naval Aviation Readiness Programs
Forward-Looking Infrared (FLIR) Technology

Risk Flags

Sole-source award
Lack of competitive pricing analysis
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.1 million to RAYTHEON COMPANY. H-60 MTS FLIR PBL - PERIOD PERFORMANCE 4 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 $40.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is Raytheon Company's track record with supplying FLIR systems to the Department of Defense, particularly for H-60 helicopters?

Raytheon Company, now part of RTX, has a long-standing history of providing advanced sensor systems, including FLIR technology, to various branches of the U.S. military. They are a significant defense contractor with extensive experience in electro-optical and infrared systems. For the H-60 platform, Raytheon has been a key supplier of components and integrated systems, contributing to the aircraft's operational capabilities. Their track record generally indicates a capacity to deliver complex defense hardware, though specific performance metrics for individual contracts, especially sole-source ones, are often not publicly detailed. The longevity of their involvement suggests a level of trust and established relationship with the Department of the Navy for these critical systems.

How does the $40 million contract value compare to historical spending on H-60 FLIR systems?

Directly comparing the $40 million value of this specific delivery order to historical spending on H-60 FLIR systems is challenging without access to detailed historical contract data and unit costs. This award covers a 364-day period performance. If this represents an annual expenditure, it would need to be compared against previous annual spending for similar systems. However, sole-source awards can sometimes be priced higher than competitively procured systems. To provide a robust comparison, one would need to analyze multiple prior contracts for H-60 FLIR systems, ideally those that were competitively awarded, to establish a baseline market price and assess if this current award aligns with or deviates significantly from that baseline, considering inflation and any technological upgrades.

What are the primary risks associated with this sole-source contract for the government?

The primary risk associated with this sole-source contract is the potential for the government to pay a higher price than if the contract had been competitively awarded. Without competing bids, there is less pressure on Raytheon Company to offer the lowest possible price. Another risk is the potential for vendor lock-in, where the government becomes dependent on a single supplier for critical components, potentially limiting future flexibility in sourcing or technology upgrades. Furthermore, if Raytheon experiences production issues or cost increases, the government has limited recourse to seek alternative suppliers, which could lead to delays or increased costs. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

What is the expected program effectiveness or impact of these FLIR systems on H-60 helicopter operations?

The Forward-Looking Infrared (FLIR) systems are critical for the operational effectiveness of the H-60 helicopter fleet. They provide pilots and sensor operators with enhanced visibility in various conditions, including low light, fog, and smoke, which is crucial for missions such as search and rescue, reconnaissance, surveillance, and combat operations. By enabling better target identification and navigation, these systems directly contribute to mission success and crew safety. The continued supply of these systems ensures that the H-60 helicopters remain capable and ready to perform their diverse roles, maintaining the U.S. Navy's operational readiness and effectiveness in maritime and other environments.

Are there any alternative technologies or contractors that could fulfill the need for H-60 FLIR systems?

While Raytheon Company is a major provider, the defense electronics market includes other companies capable of developing and manufacturing advanced FLIR systems. Competitors such as L3Harris Technologies, BAE Systems, and FLIR Systems (now Teledyne FLIR) are known for their expertise in electro-optical and infrared technologies. The justification for a sole-source award would typically need to demonstrate why these or other potential competitors cannot meet the specific requirements, such as proprietary technology, unique integration needs with the H-60 platform, or urgent operational needs that preclude a lengthy competition. Without detailed technical specifications and market analysis, it's difficult to definitively state if viable alternatives exist that could be readily substituted.

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: $40,061,515

Exercised Options: $40,061,515

Current Obligation: $40,061,515

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $2,519,218

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