DoD Awards Raytheon $93.9M for Radar Sets and Spares, Lacking Competition
Contract Overview
Contract Amount: $93,910,192 ($93.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-01-31
End Date: 2027-05-31
Contract Duration: 1,216 days
Daily Burn Rate: $77.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RADAR SET AND SPARES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $93.9 million to RAYTHEON COMPANY for work described as: RADAR SET AND SPARES Key points: 1. Significant contract value of $93.9 million for critical radar systems. 2. Sole-source award to Raytheon Company raises concerns about price discovery. 3. Long contract duration (1216 days) may indicate complex or ongoing needs. 4. Lack of small business participation noted, despite potential for subcontracting.
Value Assessment
Rating: questionable
The contract value of $93.9 million for radar sets and spares is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or Raytheon's other contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning Raytheon was the only vendor considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these radar systems and spares, as there was no market pressure to drive down costs.
Public Impact
Ensures continued operational capability for essential defense systems. Potential for higher costs due to lack of competitive bidding. Supports a major defense contractor, Raytheon Technologies. Limited visibility into the specific radar systems and their end-use.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Critical defense equipment
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of search, detection, and navigation instruments. Spending in this area is critical for national security, but often involves high-value, specialized systems where competition can be challenging.
Small Business Impact
The data indicates no small business participation in this contract. While the prime contractor is large, opportunities for small businesses to subcontract on such defense contracts are often missed when not explicitly encouraged or required.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government obtained the best possible value. Further review of the justification for sole-sourcing 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 price competition.
- Potential for overpayment due to lack of competitive bidding.
- No stated small business participation.
- Long contract duration may obscure initial pricing effectiveness.
- Lack of detailed 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 $93.9 million to RAYTHEON COMPANY. RADAR SET AND SPARES
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 $93.9 million.
What is the period of performance?
Start: 2024-01-31. End: 2027-05-31.
What is the specific justification for awarding this contract on a sole-source basis to Raytheon Company?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, urgent need, or lack of adequate competition. Without further details from the Department of Defense, it's impossible to determine the precise reason. However, such justifications are often scrutinized to ensure they are valid and not simply a convenience.
How does the $93.9 million price compare to industry benchmarks for similar radar systems, considering the lack of competition?
Benchmarking this $93.9 million award is challenging due to the sole-source nature. Typically, competitive bids provide a market-driven price point. Without this, comparisons rely on historical data for similar systems, Raytheon's internal pricing for comparable products, or government cost-analysis estimates. The absence of competition suggests the price may be higher than if multiple vendors had vied for the contract.
What is the expected operational effectiveness and lifespan of the radar sets and spares being procured under this contract?
The contract duration of 1216 days (approximately 3.3 years) suggests these radar sets and spares are intended for ongoing operational use and potential sustainment over a significant period. While the specific model and capabilities are not detailed, the award implies a need for reliable performance in defense applications. The effectiveness will depend on the technology's modernity and maintenance.
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: GUIDED MISSLES
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: $93,910,192
Exercised Options: $93,910,192
Current Obligation: $93,910,192
Actual Outlays: $2,776,489
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $9,424,135
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: 2024-01-31
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2024-08-01
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