DoD Navy Awards $28.4M F/A-18 AESA Repair Contract to Raytheon Company

Contract Overview

Contract Amount: $28,352,175 ($28.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2027-07-06

Contract Duration: 648 days

Daily Burn Rate: $43.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F/A-18 AESA REPAIR REQUIREMENTS

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.4 million to RAYTHEON COMPANY for work described as: F/A-18 AESA REPAIR REQUIREMENTS Key points: 1. Contract awarded to a single, established provider, indicating potential lack of competitive pricing. 2. High value suggests significant reliance on this specific repair capability. 3. Risk of cost overruns due to sole-source nature and fixed-price contract. 4. Sector is critical for national defense, impacting aircraft readiness.

Value Assessment

Rating: questionable

The contract's value of $28.4M for repair requirements is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized repair services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Raytheon Company was the sole provider. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential repair services.

Public Impact

Ensures continued operational readiness of F/A-18 fighter jets. Supports advanced radar system maintenance, crucial for combat effectiveness. Potential for increased costs impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for cost creep

Positive Signals

Ensures critical repair capability
Supports national defense

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on the repair of advanced radar systems for naval aircraft. Spending benchmarks in this niche area are often influenced by proprietary technology and limited supplier options.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, suggesting a focus on large, specialized defense contractors.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The sole-source nature warrants close monitoring to ensure fair pricing and efficient execution of repair services.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Dependency on a single supplier
Limited transparency in cost justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to RAYTHEON COMPANY. F/A-18 AESA REPAIR REQUIREMENTS

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 $28.4 million.

What is the period of performance?

Start: 2025-09-26. End: 2027-07-06.

What is the historical cost trend for similar F/A-18 AESA repair requirements, and how does this award compare?

Historical data on F/A-18 AESA repair costs is often proprietary and not publicly available. However, given the sole-source nature of this $28.4M award, it is difficult to benchmark against competitive market rates. Without comparative data, assessing value for money is challenging, though the fixed-price structure aims to contain costs.

What are the specific risks associated with a sole-source repair contract for critical aircraft components?

Sole-source contracts carry risks of inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. For critical components like F/A-18 AESA systems, this could lead to higher long-term maintenance costs and potential delays if the sole provider faces issues.

How does this contract contribute to the overall effectiveness and readiness of the F/A-18 fleet?

This contract is crucial for maintaining the operational readiness of the F/A-18 fleet by ensuring the repair of its advanced AESA radar systems. The timely and effective repair of these critical components directly impacts the combat effectiveness and mission capability of the aircraft, supporting naval aviation operations.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $28,352,175

Exercised Options: $28,352,175

Current Obligation: $28,352,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038325DP801

IDV Type: IDC

Timeline