DoD Awards Raytheon $20.9M for Taiwan Spares, Undermining Competition

Contract Overview

Contract Amount: $20,890,353 ($20.9M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2021-11-29

End Date: 2025-04-30

Contract Duration: 1,248 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TAIWAN SPARES

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to RAYTHEON COMPANY for work described as: TAIWAN SPARES Key points: 1. Significant award to Raytheon for critical defense components. 2. Lack of competition raises concerns about price and value. 3. Potential for higher costs due to sole-source nature. 4. Focus on navigation and guidance systems highlights strategic importance.

Value Assessment

Rating: questionable

The award of $20.9 million to Raytheon for Taiwan spares lacks a competitive benchmark. Without competing this contract, it's difficult to assess if the pricing is fair and reasonable compared to what other qualified vendors might offer.

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 taxpayers as there was no opportunity for multiple vendors to bid.

Taxpayer Impact: The lack of competition for this $20.9 million award means taxpayers may be paying a premium for these critical spares.

Public Impact

Ensures continued operational readiness for critical defense assets in Taiwan. Supports the U.S. commitment to regional security and stability. Highlights the reliance on specific defense contractors for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Supports critical defense needs
Ensures operational readiness

Sector Analysis

This award falls within the Defense sector, specifically for navigation and guidance systems. Spending in this area is crucial for maintaining military technological superiority, but often involves specialized, high-cost components.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete for this specific requirement.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lapse in competitive sourcing practices. Oversight is needed to ensure sole-source awards are justified and that opportunities for competition are maximized.

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
Sole-source award
Potential for price gouging
Limited vendor pool
Lack of transparency in justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to RAYTHEON COMPANY. TAIWAN SPARES

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 $20.9 million.

What is the period of performance?

Start: 2021-11-29. End: 2025-04-30.

What is the justification for not competing this significant award to Raytheon?

The justification for not competing this $20.9 million award is not provided in the data. Typically, sole-source awards require specific justifications, such as unique capabilities, urgent needs, or lack of market availability. Without this information, it's impossible to assess the validity of the non-competitive approach.

What are the risks associated with awarding critical spares on a sole-source basis?

The primary risks of sole-source awards for critical spares include inflated pricing due to lack of competition, potential for reduced quality if the vendor faces no pressure to innovate, and a lack of strategic sourcing flexibility. This can lead to higher long-term costs and dependence on a single supplier.

How does this award impact the operational effectiveness of Taiwan's defense systems?

This award directly supports the operational effectiveness of Taiwan's defense systems by ensuring the availability of necessary spare parts. Timely access to these components is crucial for maintaining readiness and the functionality of navigation, detection, and guidance equipment, thereby bolstering Taiwan's defensive capabilities.

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: WEAPONS

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: $20,890,353

Exercised Options: $20,890,353

Current Obligation: $20,890,353

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