Raytheon Awarded $115.7M for SMART-T 20 NSNS by DoD, Sole-Source Contract
Contract Overview
Contract Amount: $11,566,822 ($11.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-09-26
End Date: 2025-12-31
Contract Duration: 1,192 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SMART-T 20 NSNS
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $11.6 million to RAYTHEON COMPANY for work described as: SMART-T 20 NSNS Key points: 1. High contract value for specialized defense systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk associated with single-vendor reliance for critical navigation equipment. 4. Sector focus on advanced defense instrumentation manufacturing.
Value Assessment
Rating: questionable
The contract value of $115.7M is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative solutions.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers for this defense system.
Public Impact
Ensures continued availability of critical navigation and guidance systems for military operations. Supports advanced manufacturing capabilities within the defense industrial base. Potential for increased costs due to sole-source procurement impacting overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Critical defense system
- Long-term contract duration
Sector Analysis
This contract falls within the Defense sector, specifically instrument manufacturing for navigation and guidance systems. Spending benchmarks in this niche area are hard to establish without competitive data, but high-value sole-source awards are common for specialized military technology.
Small Business Impact
The data indicates this contract was awarded to Raytheon Company and does not specify any small business participation. Further investigation would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the contractor is meeting all performance requirements.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Dependency on a single supplier
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 $11.6 million to RAYTHEON COMPANY. SMART-T 20 NSNS
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 $11.6 million.
What is the period of performance?
Start: 2022-09-26. End: 2025-12-31.
What is the justification for the sole-source award of this significant contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed that Raytheon possesses exclusive rights or critical expertise for the SMART-T 20 NSNS system, making competition impractical or impossible.
What are the potential risks associated with relying on a single supplier for this defense system?
Sole-source contracts carry risks such as inflated pricing due to lack of competition, potential for vendor lock-in, and vulnerability if the sole supplier faces production issues, financial instability, or decides to discontinue the product line. This dependence can impact long-term system availability and modernization efforts.
How does the firm fixed price contract type impact value and risk for the government?
A firm fixed price (FFP) contract shifts most of the risk to the contractor, providing cost certainty for the government. However, in a sole-source scenario, the 'firm' price might be set at a higher baseline. While FFP protects against cost overruns, it doesn't guarantee the lowest possible price without competition.
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: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: $11,566,822
Exercised Options: $11,566,822
Current Obligation: $11,566,822
Actual Outlays: $2,468,515
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,794,941
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: 2022-09-26
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 12:12:00
Last Modified: 2025-09-24
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