DoD Spends $94.7M on Antenna Controls via Sole-Source Contract with Raytheon

Contract Overview

Contract Amount: $94,718,120 ($94.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-03-26

End Date: 2024-03-29

Contract Duration: 1,464 days

Daily Burn Rate: $64.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ANTENNA CONTROL ELE

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $94.7 million to RAYTHEON COMPANY for work described as: ANTENNA CONTROL ELE Key points: 1. Significant spending on a critical defense component. 2. Sole-source award to Raytheon Company raises competition concerns. 3. High contract value suggests potential for cost savings through competition. 4. Sector context: Defense Logistics Agency's role in procuring specialized systems.

Value Assessment

Rating: questionable

The contract value of $94.7M for antenna controls is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely results in a higher price than could be achieved through a competitive process, impacting taxpayer funds.

Public Impact

Ensures availability of critical antenna control systems for defense operations. Potential for increased costs due to lack of competitive pricing. Raytheon's established role in defense contracting is reinforced.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Ensures supply of critical component
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically for specialized navigation and guidance systems. Spending benchmarks for similar sole-source procurements are often higher due to limited market options.

Small Business Impact

The data does not indicate any specific involvement or benefit for small businesses in this sole-source contract. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not pursuing a competitive process. Oversight should focus on ensuring the necessity and fair pricing of such awards.

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 competitive bidding
Potential for overpayment
Limited market visibility
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.7 million to RAYTHEON COMPANY. ANTENNA CONTROL ELE

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 $94.7 million.

What is the period of performance?

Start: 2020-03-26. End: 2024-03-29.

What is 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 urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Defense Logistics Agency determined Raytheon was the only viable option for these specific antenna control systems.

What is the risk associated with a sole-source contract of this magnitude?

The primary risk is paying a premium due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it may stifle innovation from other potential suppliers and create vendor lock-in, making future procurements more expensive.

How effective is this contract in ensuring the delivery of necessary defense equipment?

The contract appears effective in ensuring the delivery of the specified antenna control systems, given its substantial value and duration. However, its effectiveness in terms of cost-efficiency is questionable due to the sole-source nature, which may not yield the best value for the government.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRPA117RX340

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: $94,751,120

Exercised Options: $94,751,120

Current Obligation: $94,718,120

Subaward Activity

Number of Subawards: 158

Total Subaward Amount: $41,298,231

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