DoD Awards Raytheon $63.4M for Kuwait Technical Assistance, Lacking Competition
Contract Overview
Contract Amount: $63,393,564 ($63.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2024-12-24
Contract Duration: 1,453 days
Daily Burn Rate: $43.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KUWAIT TECHNICAL ASSISTANCE SERVICES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $63.4 million to RAYTHEON COMPANY for work described as: KUWAIT TECHNICAL ASSISTANCE SERVICES Key points: 1. Significant contract value of $63.4 million awarded to a single large contractor. 2. Lack of competition raises concerns about potential overpricing and reduced value. 3. Contract spans over three years, indicating a long-term need for these services. 4. The sector is critical for defense operations, but the procurement method is questionable.
Value Assessment
Rating: questionable
The contract's firm-fixed-price structure aims for cost certainty. However, without competitive bidding, it's difficult to benchmark the pricing against market rates or alternative providers to ensure optimal value for taxpayer dollars.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer the best price.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these technical assistance services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract suggests a sustained need, highlighting the importance of future competitive procurements. Dependence on a single contractor for critical technical assistance could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Firm fixed price contract type
- Long contract duration indicating sustained need
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for defense capabilities, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific procurement, suggesting missed opportunities for small business participation.
Oversight & Accountability
The award was made by the Defense Logistics Agency. Oversight is crucial to ensure the contractor meets performance requirements and that future procurements in this area are conducted competitively to maximize value.
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 competition
- Potential for cost overruns
- Sole-source award raises value concerns
- Limited transparency in pricing
- No small business participation indicated
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 $63.4 million to RAYTHEON COMPANY. KUWAIT TECHNICAL ASSISTANCE SERVICES
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 $63.4 million.
What is the period of performance?
Start: 2021-01-01. End: 2024-12-24.
What is the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as a unique capability, urgent need, or lack of available alternatives. Without this justification, the decision to bypass competition is questionable and warrants further investigation into the necessity and potential alternatives.
What are the risks associated with a sole-source contract for technical assistance?
Sole-source contracts carry inherent risks, including inflated pricing due to the absence of market competition, potential for complacency from the contractor regarding performance and innovation, and a lack of flexibility to switch providers if needs change or better options emerge. This can lead to reduced value for taxpayer money and potential operational vulnerabilities.
How does this contract's pricing compare to similar services procured competitively?
Direct comparison is difficult without access to pricing data from competitive contracts for similar services. However, the lack of competition inherently suggests that the pricing may not be optimized. A benchmark analysis against industry standards or previously competed contracts for comparable technical assistance would be necessary to assess value.
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: $63,393,564
Exercised Options: $63,393,564
Current Obligation: $63,393,564
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: 2021-01-01
Current End Date: 2024-12-24
Potential End Date: 2024-12-24 12:12:00
Last Modified: 2024-06-14
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