DOD Awards Raytheon $50M for Technical Assistance to Romania and Sweden
Contract Overview
Contract Amount: $49,985,958 ($50.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2020-01-29
End Date: 2025-02-28
Contract Duration: 1,857 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROMANIA AND SWEDEN TECHNICAL ASSISTANCE
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $50.0 million to RAYTHEON COMPANY for work described as: ROMANIA AND SWEDEN TECHNICAL ASSISTANCE Key points: 1. Significant award to a major defense contractor, Raytheon Company. 2. Contract supports international technical assistance, potentially impacting geopolitical stability. 3. Lack of competition raises questions about price discovery and value for money. 4. The sector is critical for national security and technological advancement.
Value Assessment
Rating: questionable
The contract's value of $50 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar technical assistance contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for the technical assistance provided.
Public Impact
Supports U.S. foreign policy objectives by providing technical assistance to allies. Enhances interoperability and defense capabilities of Romania and Sweden. Potential for technology transfer and strengthening of defense industrial bases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns due to limited price discovery
Positive Signals
- Supports key allies
- Long-term contract duration
- Critical technical assistance
Sector Analysis
This contract falls within the Defense sector, specifically related to system manufacturing and technical support. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
As a sole-source award, this contract warrants close oversight to ensure the services are necessary, performed effectively, and priced reasonably. The Defense Logistics Agency should monitor performance and costs diligently.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award process
- Dependency on a single contractor
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.0 million to RAYTHEON COMPANY. ROMANIA AND SWEDEN TECHNICAL ASSISTANCE
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $50.0 million.
What is the period of performance?
Start: 2020-01-29. End: 2025-02-28.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's difficult to ascertain the specific reasons. However, such awards necessitate rigorous justification to ensure taxpayer funds are used appropriately and that competition was genuinely not feasible.
How will the effectiveness of the technical assistance be measured and ensured?
Effectiveness is likely measured through performance metrics outlined in the contract, such as successful system integration, training completion rates, and operational readiness improvements for the recipient nations. The Defense Logistics Agency should establish clear deliverables and milestones, with regular reporting and evaluation to ensure Raytheon meets its obligations.
What is the long-term strategic value of this technical assistance to U.S. interests?
This assistance strengthens alliances and enhances the defense capabilities of key NATO partners, contributing to regional stability and collective security. It can also foster interoperability, facilitate joint operations, and potentially lead to future defense trade opportunities, aligning with U.S. foreign policy and national security objectives.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rockwell Collins Australia PTY Limited
Address: 350 LOWELL ST, ANDOVER, MA, 01810
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: $49,985,958
Exercised Options: $49,985,958
Current Obligation: $49,985,958
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRBL115D0017
IDV Type: IDC
Timeline
Start Date: 2020-01-29
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 12:02:00
Last Modified: 2025-04-08
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