DoD Awards $20.4M for AESA Radar Spares to Raytheon, Lacking Competition

Contract Overview

Contract Amount: $20,433,227 ($20.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2028-08-28

Contract Duration: 1,001 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AESA RADAR SPARES COMPONENTS

Place of Performance

Location: FOREST, SCOTT County, MISSISSIPPI, 39074

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to RAYTHEON COMPANY for work described as: AESA RADAR SPARES COMPONENTS Key points: 1. Significant contract value for specialized radar components. 2. Sole awardee, Raytheon Company, dominates this niche. 3. Potential risk due to lack of competitive bidding. 4. Spending concentrated in the Defense sector, specifically naval systems.

Value Assessment

Rating: questionable

The award value of $20.4M for AESA radar spares appears substantial. Without competitive bids, it's difficult to benchmark against market rates for similar components or assess if this represents a fair price.

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 taxpayers as competition is absent.

Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a more competitive process could have yielded cost savings.

Public Impact

Ensures continued operational readiness for naval AESA radar systems. Supports advanced defense technology and national security. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Supports critical defense systems
Long-term contract duration

Sector Analysis

This contract falls within the defense sector, specifically for advanced radar components. Spending benchmarks for specialized military hardware are often high due to R&D and unique requirements, but competition is key to controlling costs.

Small Business Impact

The data indicates no specific set-aside for small businesses in this contract. Given the specialized nature of AESA radar components, it's likely that large, established defense contractors like Raytheon are the primary players.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing a competitive bidding process. Accountability for ensuring fair pricing in sole-source awards is crucial.

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
Sole-source award
Potential for price gouging
Limited market research transparency
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to RAYTHEON COMPANY. AESA RADAR SPARES COMPONENTS

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 $20.4 million.

What is the period of performance?

Start: 2025-12-01. End: 2028-08-28.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must still conduct market research and negotiate pricing to ensure it's fair and reasonable, often comparing to historical data or similar commercial items, though this is less effective than true competition.

What are the long-term risks associated with relying on a single supplier for critical AESA radar spare components?

Long-term reliance on a single supplier, like Raytheon in this case, poses risks of price escalation, potential supply chain disruptions if the sole source faces issues, and a lack of incentive for the supplier to innovate or improve efficiency. It also limits the government's leverage in future negotiations.

How does this sole-source award impact the overall cost-effectiveness of the Navy's AESA radar sustainment program?

A sole-source award inherently reduces cost-effectiveness compared to a competitive process. Without competing bids, the Navy may be paying a premium for these spare components. Over the life of the sustainment program, this could lead to significantly higher expenditures than if multiple suppliers were vying for the contract.

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: ELECTRIC WIRE, POWER DISTRIB 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: 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: $20,433,227

Exercised Options: $20,433,227

Current Obligation: $20,433,227

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