DoD Awards Raytheon $31M for Commander's Viewer Units, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $31,041,160 ($31.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2021-05-28
End Date: 2023-06-30
Contract Duration: 763 days
Daily Burn Rate: $40.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMANDER'S VIEWER UNIT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $31.0 million to RAYTHEON COMPANY for work described as: COMMANDER'S VIEWER UNIT Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense, specifically navigation and guidance systems.
Value Assessment
Rating: questionable
The $31 million award for Commander's Viewer Units lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if the price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible value, potentially leading to overspending.
Public Impact
Military readiness may be impacted if these units are critical for operations. Taxpayer funds are allocated to a single provider, Raytheon. The defense sector continues to see significant contract awards, impacting national budget priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Award to established defense contractor
- Contract supports critical defense systems
Sector Analysis
This award falls within the Defense sector, specifically manufacturing instruments for search, detection, navigation, guidance, and similar systems. Spending in this area is substantial, driven by national security needs.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, sole-source defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the pricing is fair and reasonable, despite the absence of competition. Transparency in justification for sole-sourcing is key.
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 lacks competitive pricing.
- Potential for overpayment due to lack of competition.
- Dependency on a single supplier creates supply chain risk.
- Limited transparency on 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 $31.0 million to RAYTHEON COMPANY. COMMANDER'S VIEWER UNIT
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 $31.0 million.
What is the period of performance?
Start: 2021-05-28. End: 2023-06-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct market research and negotiate pricing rigorously to ensure fairness, even without competition. Documentation of this justification and negotiation process is crucial for accountability.
What are the risks associated with relying on a single supplier for critical navigation and guidance systems?
Relying on a single supplier creates significant risks, including supply chain vulnerability, potential for price gouging, and lack of innovation. If the sole-source provider faces production issues, geopolitical challenges, or decides to discontinue the product, the Department of Defense could face critical shortages or be forced into even less favorable terms.
How does this contract contribute to the overall effectiveness of the Commander's Viewer Unit system?
The effectiveness of this contract hinges on Raytheon's ability to deliver high-quality, reliable Commander's Viewer Units that meet or exceed performance specifications. While the award itself doesn't guarantee effectiveness, the firm fixed-price contract structure incentivizes Raytheon to manage costs and deliver the specified product. The true measure of effectiveness will be the system's performance in the field.
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: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $31,041,160
Exercised Options: $31,041,160
Current Obligation: $31,041,160
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $6,812,279
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: 2021-05-28
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 12:06:00
Last Modified: 2023-11-29
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