DoD awards Raytheon $22M for Organic Depot Activation, a sole-source contract for navigation systems
Contract Overview
Contract Amount: $22,026,612 ($22.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-06-27
End Date: 2014-06-27
Contract Duration: 730 days
Daily Burn Rate: $30.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ORGANIC DEPOT ACTIVATION AS SPECIFIED IN
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to RAYTHEON COMPANY for work described as: ORGANIC DEPOT ACTIVATION AS SPECIFIED IN Key points: 1. Contract value of $22M for depot activation. 2. Sole-source award to Raytheon Company. 3. Focus on Search, Detection, Navigation, Guidance systems. 4. Contract duration of 730 days.
Value Assessment
Rating: questionable
The contract value of $22M for depot activation is difficult to assess without specific deliverables. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Navigation systems are critical for military operations. Raytheon is a major defense contractor. The contract supports depot activation, implying infrastructure or capability development. The specific use of 'Organic Depot Activation' needs further clarification regarding its impact on readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for inflated costs
Positive Signals
- Supports critical navigation systems
- Award to established defense contractor
Sector Analysis
The defense sector, particularly IT and navigation systems, often involves complex and specialized technologies. Spending benchmarks for similar depot activation contracts are not readily available, making direct comparison challenging.
Small Business Impact
This contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective use of taxpayer funds. Further oversight may be needed to confirm the necessity and justification for not competing the contract.
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 lacks competition
- Potential for inflated pricing
- Lack of detailed justification for sole-source
- Unclear taxpayer value without competitive data
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to RAYTHEON COMPANY. ORGANIC DEPOT ACTIVATION AS SPECIFIED IN
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 $22.0 million.
What is the period of performance?
Start: 2012-06-27. End: 2014-06-27.
What specific services or capabilities does 'Organic Depot Activation' entail, and how does this justify a sole-source award?
Organic Depot Activation likely refers to the establishment or enhancement of internal government facilities or capabilities for maintenance, repair, or production of defense systems. Justification for a sole-source award typically rests on unique capabilities, urgent needs, or lack of viable alternatives. Without detailed documentation, it's difficult to ascertain the specific rationale and whether it truly precluded competitive bidding.
What is the benchmark cost for similar depot activation projects within the Department of Defense?
Benchmarking for 'Organic Depot Activation' is challenging due to the specialized nature of the term and the lack of publicly available data on similar sole-source contracts. Costs can vary significantly based on the scope of work, required infrastructure, technology involved, and geographic location. A thorough review of internal DoD cost data or similar competitive procurements, if they exist, would be necessary for a meaningful benchmark.
How does this $22M contract contribute to the overall effectiveness and readiness of the Department of the Navy's navigation systems?
The $22M contract is intended to activate or enhance organic depot capabilities, which should theoretically improve the maintenance, repair, or production capacity for navigation systems. This could lead to increased readiness and reduced reliance on external support. However, the effectiveness is contingent on the specific activation activities performed and their alignment with operational needs, which are not detailed in the provided data.
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
Solicitation ID: N6883612R0008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,026,612
Exercised Options: $22,026,612
Current Obligation: $22,026,612
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-06-27
Current End Date: 2014-06-27
Potential End Date: 2014-06-27 00:00:00
Last Modified: 2013-08-20
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