DoD Spends $45.3M on W1 Antenna from Raytheon, Lacking Competition

Contract Overview

Contract Amount: $45,309,628 ($45.3M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-03-04

End Date: 2024-06-14

Contract Duration: 1,929 days

Daily Burn Rate: $23.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: W1 ANTENNA

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to RAYTHEON COMPANY for work described as: W1 ANTENNA Key points: 1. Significant spending on a single antenna component. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Long contract duration (1929 days) may indicate potential for cost overruns. 4. Lack of competition limits price discovery and potential savings.

Value Assessment

Rating: questionable

The $45.3 million awarded for the W1 Antenna is a substantial sum. Without competitive bids, it's difficult to assess if this price is reasonable compared to market alternatives or similar DoD contracts.

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 likely resulted in a higher price than could have been achieved through a competitive bidding process.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure to lower the price.

Public Impact

Defense spending on specialized equipment. Potential impact on military readiness if the antenna is critical. Raytheon Company's role as a major defense contractor.

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

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for defense operations. Spending benchmarks for specialized components like antennas can vary widely, but significant sole-source awards warrant scrutiny.

Small Business Impact

This contract was awarded to Raytheon Company and does not indicate any specific benefit or set-aside for small businesses. The lack of competition further suggests limited opportunities for smaller firms in this procurement.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Oversight is crucial for sole-source awards to ensure fair pricing and performance, especially given the long duration.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to RAYTHEON COMPANY. W1 ANTENNA

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 $45.3 million.

What is the period of performance?

Start: 2019-03-04. End: 2024-06-14.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of alternative sources. Without this information, it's impossible to fully assess the necessity of bypassing competition and the potential impact on cost-effectiveness for the Department of Defense.

What is the specific function and criticality of the W1 Antenna to defense operations?

Understanding the W1 Antenna's role is vital to assessing the risk associated with its procurement. If it's a mission-critical component with no viable substitutes, the sole-source award might be more justifiable, though still subject to price scrutiny. If it's a less critical item, the lack of competition becomes a more significant concern.

Were there any efforts made to explore alternative solutions or potential competitors prior to the sole-source determination?

Exploring alternatives is a key aspect of responsible procurement, even when leaning towards a sole-source award. Documenting market research and attempts to identify other capable vendors helps ensure that competition was genuinely not feasible, thereby validating the sole-source decision and mitigating concerns about missed opportunities for better pricing.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRPA116RX164

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245

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: $45,309,628

Exercised Options: $45,309,628

Current Obligation: $45,309,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SPRPA117GC301

IDV Type: BOA

Timeline