DoD Awards Raytheon $29.3M for W1 Antenna Systems Amidst Sole-Source Concerns
Contract Overview
Contract Amount: $29,281,000 ($29.3M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-10-21
End Date: 2026-05-29
Contract Duration: 1,681 days
Daily Burn Rate: $17.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: W1 ANTENNA
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $29.3 million to RAYTHEON COMPANY for work described as: W1 ANTENNA Key points: 1. Significant contract value of $29.3 million for specialized antenna systems. 2. Sole-source award to Raytheon Company raises questions about competition. 3. Potential risk associated with limited competition impacting price discovery. 4. The contract falls within the Defense sector, specifically instrument manufacturing.
Value Assessment
Rating: questionable
The contract value of $29.3 million for W1 Antenna systems is difficult to benchmark without specific technical details and comparable sole-source awards. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium due to the absence of competitive pressure to lower prices.
Public Impact
Ensures critical W1 antenna systems are supplied to the Department of Defense. Supports a major defense contractor, Raytheon Company, and its supply chain. Potential for increased costs to taxpayers due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Ensures supply of critical defense equipment
- Supports established defense contractor
Sector Analysis
This contract is within the Defense sector, specifically for the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems. Spending in this sub-sector can be substantial, but benchmarks are highly dependent on the specific technology and system.
Small Business Impact
The awardee is Raytheon Company, a large prime contractor. There is no indication that small businesses were involved in this specific sole-source award, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Dependency on a single supplier for critical equipment.
- Lack of transparency regarding the justification for sole-sourcing.
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 $29.3 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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $29.3 million.
What is the period of performance?
Start: 2021-10-21. End: 2026-05-29.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or lack of viable alternatives. Without this specific justification, it's difficult to assess the necessity. Steps to ensure fair pricing in sole-source contracts often include detailed cost analysis, comparison to historical data, and negotiation, but the effectiveness is limited without competitive pressure.
What are the potential risks associated with relying on a single supplier for critical W1 antenna systems, especially given the long contract duration?
Relying on a single supplier for critical systems like the W1 antenna poses risks of supply chain disruption, lack of innovation, and price escalation over time. If Raytheon faces production issues or decides to increase prices significantly, the DoD has limited recourse due to the sole-source nature of the contract, potentially impacting operational readiness.
How does the $29.3 million contract value compare to similar antenna system procurements, and what is the expected return on investment for the taxpayer?
Direct comparison is challenging due to the sole-source nature and specific 'W1 Antenna' designation. However, for critical defense systems, significant investments are expected. The return on investment for taxpayers is primarily measured by the system's contribution to national security and mission effectiveness, which is difficult to quantify financially, especially when competitive pricing is absent.
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: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRPA120QX107
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $29,281,000
Exercised Options: $29,281,000
Current Obligation: $29,281,000
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $4,891,640
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: 2021-10-21
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 00:00:00
Last Modified: 2026-01-14
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