Raytheon Awarded $36.3M for 26 NSNs in Support of PBL Plus Up Effort by DoD
Contract Overview
Contract Amount: $36,306,061 ($36.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-10-31
End Date: 2023-05-10
Contract Duration: 1,287 days
Daily Burn Rate: $28.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 26 NSN'S IN SUPPORT OF PBL PLUS UP EFFORT
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $36.3 million to RAYTHEON COMPANY for work described as: 26 NSN'S IN SUPPORT OF PBL PLUS UP EFFORT Key points: 1. The contract, valued at $36.3 million, supports 26 National Stock Numbers (NSNs) for bare printed circuit boards. 2. Awarded to Raytheon Company, this contract falls under the Bare Printed Circuit Board Manufacturing sector. 3. The contract was not competed, raising questions about potential price discovery and value for taxpayer money. 4. The duration of the contract is 1287 days, indicating a long-term need for these components.
Value Assessment
Rating: questionable
Without competitive bidding, it is difficult to assess if the $36.3 million price is optimal. Benchmarking against similar contracts for bare printed circuit boards is necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The lack of competition for this $36.3 million contract raises concerns about potential overspending, impacting taxpayer value.
Public Impact
Defense readiness may be impacted if these critical circuit boards are not procured at the best possible price. Taxpayers may be bearing a higher cost due to the absence of competitive bidding. The long contract duration suggests a sustained need, making the procurement method's efficiency crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Supports critical defense components
- Long-term contract provides stability
Sector Analysis
The Bare Printed Circuit Board Manufacturing sector is critical for various defense systems. Spending benchmarks for similar sole-source contracts are essential for evaluating this award's value.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to Raytheon Company.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Defense Contract Management Agency's role in monitoring this contract is vital for accountability.
Related Government Programs
- Bare Printed Circuit Board Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-competitive pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier for critical components.
Tags
bare-printed-circuit-board-manufacturing, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to RAYTHEON COMPANY. 26 NSN'S IN SUPPORT OF PBL PLUS UP EFFORT
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $36.3 million.
What is the period of performance?
Start: 2019-10-31. End: 2023-05-10.
What is the estimated cost savings if this contract had been competed?
Quantifying exact savings without a competitive process is challenging. However, historical data suggests that competitive bidding can yield savings ranging from 10% to 30% or more on similar procurements. A thorough market research and cost analysis would be needed to estimate potential savings for these specific NSNs.
What are the risks associated with a sole-source award for critical defense components?
Sole-source awards for critical components like bare printed circuit boards carry risks of inflated pricing, reduced innovation, and potential supply chain vulnerabilities if the sole provider faces issues. It also limits the government's ability to leverage market competition for better terms and conditions.
How does the firm fixed price (FFP) contract type mitigate risk in this sole-source scenario?
A Firm Fixed Price contract type shifts the cost risk to the contractor, Raytheon Company. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. While this provides budget certainty for the government, it doesn't inherently guarantee the best price without competition.
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: SPRMM119RTA29
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $36,306,061
Exercised Options: $36,306,061
Current Obligation: $36,306,061
Subaward Activity
Number of Subawards: 238
Total Subaward Amount: $20,099,487
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SPRMM118GDK01
IDV Type: BOA
Timeline
Start Date: 2019-10-31
Current End Date: 2023-05-10
Potential End Date: 2023-05-10 00:00:00
Last Modified: 2023-07-06
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