DoD Awards $6.8M for Controller Assemblies to Raytheon Company, Lacking Competition
Contract Overview
Contract Amount: $6,872,572 ($6.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2026-01-06
End Date: 2027-04-16
Contract Duration: 465 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTROLLER ASSEMBLY
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $6.9 million to RAYTHEON COMPANY for work described as: CONTROLLER ASSEMBLY Key points: 1. Significant contract value of $6.87 million for specialized aircraft parts. 2. Sole-source award to Raytheon Company raises questions about competitive pricing. 3. Long contract duration of 465 days may impact cost-effectiveness. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $6.87 million for controller assemblies is difficult to benchmark without specific unit costs or comparison to similar sole-source awards. The lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition for this $6.87 million contract means taxpayers may not be receiving the best possible price for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft components due to the lack of competitive bidding. The Department of the Navy's reliance on a single supplier for this critical part warrants scrutiny. Future procurement strategies should prioritize competitive sourcing to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Contract awarded to a known entity (Raytheon Company)
- Clear delivery timeline provided
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive sourcing is vital to manage costs effectively.
Small Business Impact
The contract explicitly states that small businesses were not involved (ss: false, sb: false). This represents a missed opportunity to support small businesses and potentially introduce innovative solutions or competitive pricing.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing oversight. Further review is needed to understand why this contract was not competed and if adequate justification exists.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to no competitive pressure.
- No small business participation.
- Long contract duration may not be optimal for cost control.
- Lack of transparency regarding justification for sole-source.
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. CONTROLLER ASSEMBLY
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: 2026-01-06. End: 2027-04-16.
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, urgent needs, or lack of viable alternatives. Without this information, it's impossible to assess if fair and reasonable pricing was achieved. The absence of competition inherently limits price discovery, potentially leading to higher costs for the government and taxpayers.
What is the specific function of the 'CONTROLLER ASSEMBLY' and its criticality to naval aviation operations?
The 'CONTROLLER ASSEMBLY' likely refers to a component that regulates or manages the operation of a specific aircraft system. Its criticality would depend on the system it controls, potentially impacting flight controls, engine management, or mission systems. Understanding its role is key to assessing the risk associated with a sole-source award.
How does the firm fixed price (FFP) contract type mitigate risk for the government in this sole-source scenario?
A firm fixed price contract shifts the risk of cost overruns to the contractor, Raytheon Company. While this provides cost certainty for the government, it does not inherently guarantee a fair price, especially in a sole-source situation. The government still bears the risk of paying a non-competitive price if adequate price analysis was not performed.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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: 6380 HOLLISTER AVE, GOLETA, CA, 93117
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: $6,872,572
Exercised Options: $6,872,572
Current Obligation: $6,872,572
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038322DT501
IDV Type: IDC
Timeline
Start Date: 2026-01-06
Current End Date: 2027-04-16
Potential End Date: 2027-04-16 00:00:00
Last Modified: 2026-01-06
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