DoD's $12.7M F/A-18/EA-18G Sensor Systems Support Contract Awarded to Raytheon Company

Contract Overview

Contract Amount: $12,737,104 ($12.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-05-01

End Date: 2020-09-30

Contract Duration: 518 days

Daily Burn Rate: $24.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF F/A-18/EA-18G SENSOR SYSTEMS SUPPORT

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to RAYTHEON COMPANY for work described as: IGF::OT::IGF F/A-18/EA-18G SENSOR SYSTEMS SUPPORT Key points: 1. Contract awarded to Raytheon Company for critical sensor systems support for F/A-18/EA-18G aircraft. 2. Significant value of $12.7M highlights the importance of maintaining advanced aircraft capabilities. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The Engineering Services sector is vital for defense readiness and technological advancement.

Value Assessment

Rating: questionable

The contract value of $12.7M for sensor systems support appears high given the lack of competition. Without competitive bids, it's difficult to benchmark pricing against similar contracts or market rates, suggesting potential for inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been openly competed.

Public Impact

Ensures continued operational readiness of F/A-18/EA-18G aircraft through essential sensor system maintenance and support. Supports advanced defense capabilities critical for national security and military operations. Potential for taxpayer funds to be used inefficiently due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing

Positive Signals

Supports critical defense assets
Ensures operational readiness

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for maintaining and upgrading complex defense systems like the F/A-18/EA-18G. Spending in this area is benchmarked against the overall defense budget and specific platform sustainment costs.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company and does not specify any subcontracting to small businesses. Further investigation is needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability mechanisms should be in place to track performance and expenditures.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in cost justification
No clear indication of small business utilization

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to RAYTHEON COMPANY. IGF::OT::IGF F/A-18/EA-18G SENSOR SYSTEMS SUPPORT

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 $12.7 million.

What is the period of performance?

Start: 2019-05-01. End: 2020-09-30.

What specific technical expertise does Raytheon possess that justifies a sole-source award for F/A-18/EA-18G sensor systems support?

Raytheon, as the original equipment manufacturer or a key supplier for these specific sensor systems, likely holds unique technical data, proprietary knowledge, and specialized tooling essential for their maintenance and repair. This deep institutional knowledge and direct access to manufacturer-specific support infrastructure can be difficult for other firms to replicate, potentially justifying a sole-source award to ensure continuity and technical integrity of critical aircraft components.

How can the Department of the Navy ensure cost-effectiveness and prevent potential overpricing in future sole-source contracts for similar sensor systems support?

The Department of the Navy can implement strategies such as robust independent cost estimates, benchmarking against similar sole-source contracts for comparable systems, and negotiating stronger fixed-fee or incentive structures. Additionally, exploring options for technology insertion or alternative support solutions that could foster future competition, even if limited, should be considered to drive down long-term costs and improve value.

What is the long-term impact on the F/A-18/EA-18G platform's readiness and technological relevance if sensor system support is consistently awarded without competition?

Consistent sole-source awards may lead to a stagnation of technological upgrades and potentially higher sustainment costs over the platform's lifecycle. Without competitive pressure, there's less incentive for the incumbent contractor to innovate or for new technologies to be integrated. This could eventually impact the platform's overall effectiveness and readiness compared to adversaries employing more competitively sourced and technologically advanced systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6893618R0044

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

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: $12,884,572

Exercised Options: $12,884,572

Current Obligation: $12,737,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6893619D0001

IDV Type: IDC

Timeline