DoD awards Raytheon $51.7M for technical assistance, raising concerns over limited competition
Contract Overview
Contract Amount: $51,676,356 ($51.7M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2022-12-01
End Date: 2027-04-15
Contract Duration: 1,596 days
Daily Burn Rate: $32.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TASK ORDER TO PROCURE TECHNICAL ASSISTANCE SERVICES.
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $51.7 million to RAYTHEON COMPANY for work described as: TASK ORDER TO PROCURE TECHNICAL ASSISTANCE SERVICES. Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition may lead to inflated costs. 3. Potential for taxpayer funds to be used inefficiently. 4. Services fall under a broad manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $51.7M for technical assistance services is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar services procured through competitive means.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This method can reduce administrative burden but often results in less price discovery and potentially higher costs for the government.
Taxpayer Impact: The lack of competition limits the government's ability to secure the best possible price, potentially impacting taxpayer value.
Public Impact
Taxpayers may be overpaying for technical assistance due to the absence of competitive bidding. The long duration (nearly 5 years) means sustained potential for suboptimal pricing. Lack of transparency in the procurement process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Long contract duration
Positive Signals
- Clear task order for technical assistance
- Established vendor (Raytheon)
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this broad manufacturing area can be significant, but specific benchmarks for technical assistance services are hard to ascertain without competition.
Small Business Impact
The data indicates this contract was not awarded to a small business, and the limited competition approach further suggests that small businesses were not considered or given an opportunity to bid.
Oversight & Accountability
The Department of Defense and the Defense Logistics Agency are responsible for oversight. The 'not competed' status warrants scrutiny to ensure the necessity and fairness of the sole-source award.
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 overpricing
- Limited transparency
- Long contract duration
- 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 $51.7 million to RAYTHEON COMPANY. TASK ORDER TO PROCURE 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 $51.7 million.
What is the period of performance?
Start: 2022-12-01. End: 2027-04-15.
What is the justification for not competing this technical assistance contract, and how does the agency ensure fair pricing without competitive proposals?
The justification for not competing this contract is not provided in the data. Agencies typically justify limited competition based on factors like urgency, unique capabilities, or existing infrastructure. Ensuring fair pricing without competition often involves detailed cost analysis, historical pricing data, or independent government cost estimates, though these are not detailed here.
What are the specific technical assistance services being procured, and how critical are they to ongoing defense operations?
The specific technical assistance services are not detailed in the provided data, only that they fall under the broad category of 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' The criticality to ongoing defense operations is implied by the awarding agency (DoD) and the substantial contract value, suggesting they support essential functions.
Could alternative procurement methods, such as a competitive task order under an existing IDIQ, have yielded better value for taxpayers?
It is highly probable that alternative competitive methods, such as issuing a task order under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract, could have yielded better value. Competitive task orders allow multiple vendors to bid, fostering price discovery and potentially leading to lower costs for the government and taxpayers.
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: $51,676,356
Exercised Options: $51,676,356
Current Obligation: $51,676,356
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $441,337
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: 2022-12-01
Current End Date: 2027-04-15
Potential End Date: 2027-04-15 12:04:00
Last Modified: 2025-09-22
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