DoD Awards Raytheon $19.7M for DMPE Funding Task Order, No Competition
Contract Overview
Contract Amount: $19,718,764 ($19.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2026-08-31
Contract Duration: 1,399 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DMPE FUNDING TASK ORDER
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $19.7 million to RAYTHEON COMPANY for work described as: DMPE FUNDING TASK ORDER Key points: 1. Significant award to Raytheon Company for defense systems. 2. Lack of competition raises concerns about potential overpricing. 3. Long duration (1399 days) suggests a substantial, ongoing need. 4. The award falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract's firm fixed price structure is standard, but without competition, it's difficult to assess if the $19.7 million price reflects fair market value. Benchmarking against similar sole-source contracts would be necessary for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and could lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these defense systems.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration indicates a critical, long-term need for these defense systems. Transparency in the sole-source justification is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
This award is within the Defense sector, specifically for manufacturing navigation and guidance systems. Spending in this area is typically high due to national security requirements, but competitive pricing is still essential.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which is common for large, specialized defense contracts. Further analysis would be needed to confirm any subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Defense Logistics Agency to ensure the contractor is meeting all performance requirements and that the pricing remains reasonable throughout the contract's life.
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 award lacks competition.
- Potential for inflated pricing.
- Long contract duration increases long-term cost risk.
- Limited transparency on price justification.
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 $19.7 million to RAYTHEON COMPANY. DMPE FUNDING TASK ORDER
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 $19.7 million.
What is the period of performance?
Start: 2022-11-01. End: 2026-08-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the agency likely relied on historical pricing data, independent cost estimates, or price analysis techniques. However, without open competition, the rigor of this price discovery is inherently limited, and a thorough review of the agency's justification and price analysis is recommended.
What are the potential risks associated with a long-term, sole-source contract for defense systems?
The primary risks include potential cost overruns due to a lack of competitive pressure, reduced innovation from the contractor, and vendor lock-in. If the contractor's performance falters or costs escalate, the agency has limited options for recourse or switching providers without significant disruption. Ensuring robust contract management and performance monitoring is critical to mitigate these risks.
How does this contract contribute to the overall effectiveness of the Department of Defense's navigation and guidance systems?
This contract likely supports the sustainment or enhancement of critical navigation and guidance systems essential for military operations. The long duration suggests these systems are vital and require ongoing support. While the specific impact on effectiveness is hard to gauge without more detail, ensuring the reliability and performance of these components is fundamental to mission success across various defense platforms.
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: $19,718,764
Exercised Options: $19,718,764
Current Obligation: $19,718,764
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $217,496
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: 2022-11-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 12:08:00
Last Modified: 2025-10-06
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