DoD Awards $72.7M for F/A-18 AESA Spares, Sole-Source to Raytheon

Contract Overview

Contract Amount: $72,678,246 ($72.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2028-06-21

Contract Duration: 999 days

Daily Burn Rate: $72.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F/A-18 AESA SPARES REQUIREMENTS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $72.7 million to RAYTHEON COMPANY for work described as: F/A-18 AESA SPARES REQUIREMENTS Key points: 1. Significant investment in critical F/A-18 radar technology. 2. Sole-source award raises concerns about price competition. 3. Long contract duration (999 days) may impact flexibility. 4. High value contract for specialized defense manufacturing.

Value Assessment

Rating: questionable

The award value of $72.7M for spares is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar advanced radar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for these essential F/A-18 spares.

Public Impact

Ensures continued operational readiness for the F/A-18 Super Hornet fleet. Supports advanced radar capabilities crucial for naval aviation. Potential for cost overruns due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Supports critical defense platform
Ensures operational readiness

Sector Analysis

This contract falls within the Defense sector, specifically for advanced avionics manufacturing. Spending benchmarks for specialized radar components can vary widely, but sole-source awards often exceed competitive pricing.

Small Business Impact

This contract does not appear to involve small business participation, as the award is directly to Raytheon Company, a large defense contractor.

Oversight & Accountability

Oversight will be crucial to ensure Raytheon delivers high-quality spares within the specified timeframe and to monitor costs, especially given the sole-source nature of the award.

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

Sole-source award limits price competition.
Potential for cost overruns.
Long contract duration may not reflect current market conditions.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.7 million to RAYTHEON COMPANY. F/A-18 AESA SPARES 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 $72.7 million.

What is the period of performance?

Start: 2025-09-26. End: 2028-06-21.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. The Department of the Navy would need to provide documentation detailing why competition was not feasible or advantageous for these specific F/A-18 AESA spares.

How will the government ensure fair and reasonable pricing without a competitive bidding process?

The government will likely rely on cost analysis, price negotiation, and potentially independent cost estimates to ensure fair and reasonable pricing. Reviewing Raytheon's cost proposals, historical pricing, and industry benchmarks for similar components will be essential steps in the negotiation process.

What are the potential risks associated with a long-term sole-source contract for critical spares?

Risks include inflated prices due to lack of competition, potential for complacency from the sole provider, and difficulty adapting to technological advancements or changing requirements. The extended duration also ties up significant funds without the benefit of market-driven cost reductions.

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: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: $72,678,246

Exercised Options: $72,678,246

Current Obligation: $72,678,246

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $5,731,581

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