DoD Awards Raytheon $34.7M for F-16 Electrical Components, Lacking Competition

Contract Overview

Contract Amount: $34,689,311 ($34.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2028-06-07

Contract Duration: 982 days

Daily Burn Rate: $35.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-16 ELECTRICAL CHASSIS, POWER SUPPLIERS AND CIRCUIT CARD ASSEMBLIES.

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to RAYTHEON COMPANY for work described as: F-16 ELECTRICAL CHASSIS, POWER SUPPLIERS AND CIRCUIT CARD ASSEMBLIES. Key points: 1. Significant award for critical F-16 aircraft components. 2. Sole-source award to Raytheon raises competition concerns. 3. Long contract duration (nearly 3 years) impacts flexibility. 4. High dollar value for specialized electronic parts.

Value Assessment

Rating: questionable

The contract value of $34.7 million for electrical chassis, power suppliers, and circuit card assemblies is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized defense components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for these critical F-16 parts may result in taxpayers paying a premium, as there was no market pressure to drive down costs.

Public Impact

Ensures continued operational readiness of the F-16 fleet. Supports a key defense contractor's supply chain. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration

Positive Signals

Supports critical defense platform
Firm fixed price contract limits cost overrun risk

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on electronic components for military aircraft. Spending benchmarks for such specialized parts are often high due to R&D and stringent quality requirements, but competition is key to controlling costs.

Small Business Impact

The contract data does not indicate any specific provisions or set-asides for small businesses. The award to a large prime contractor like Raytheon suggests limited direct opportunities for small businesses in this specific procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is justified and that future procurements explore competitive options where feasible.

Related Government Programs

Bare Printed Circuit Board Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits price competition.
Long contract duration may reduce flexibility.
Potential for price inflation without competitive pressure.
Dependence on a single supplier for critical parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to RAYTHEON COMPANY. F-16 ELECTRICAL CHASSIS, POWER SUPPLIERS AND CIRCUIT CARD ASSEMBLIES.

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 $34.7 million.

What is the period of performance?

Start: 2025-09-29. End: 2028-06-07.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. However, oversight bodies should investigate whether alternative competitive strategies were explored to ensure the best value for the government and taxpayers.

What is the risk associated with relying on a single supplier for critical F-16 components?

Relying on a single supplier like Raytheon for critical F-16 electrical components poses risks such as potential supply chain disruptions, price escalation without competitive pressure, and reduced leverage for the government in negotiations. This dependence can impact aircraft readiness if the sole source faces production issues.

How does the firm fixed price contract structure mitigate risks for the government?

The firm fixed price (FFP) contract structure is beneficial as it shifts the risk of cost overruns to the contractor, Raytheon. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs, providing budget certainty and protecting taxpayer funds from unexpected increases.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRHA425R0144

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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: $34,689,311

Exercised Options: $34,689,311

Current Obligation: $34,689,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline