DoD Spends $33.6M on B-2 RMP Antenna from Raytheon, Lacking Competition
Contract Overview
Contract Amount: $33,561,745 ($33.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2012-08-31
End Date: 2014-09-30
Contract Duration: 760 days
Daily Burn Rate: $44.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-2 RMP ANTENNA
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $33.6 million to RAYTHEON COMPANY for work described as: B-2 RMP ANTENNA Key points: 1. Significant spending on a critical aircraft component. 2. Sole-source award to Raytheon raises competition concerns. 3. Long contract duration may impact price competitiveness. 4. Limited transparency on pricing compared to market benchmarks.
Value Assessment
Rating: questionable
The contract value of $33.6 million for B-2 RMP Antennas is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar specialized aerospace components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This significantly limits the government's ability to discover the best possible price through market forces.
Taxpayer Impact: The absence of competition likely resulted in a higher cost to taxpayers than if multiple vendors had been allowed to bid on this requirement.
Public Impact
Ensures continued operational capability for the B-2 bomber fleet. Supports a key defense contractor, Raytheon. Potential for higher costs due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Critical component for B-2 aircraft
- Award to established defense contractor
Sector Analysis
This spending falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Benchmarks for specialized components like antennas can vary widely based on technology and exclusivity.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors or prime bidders on this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense adequately justified the lack of competition and obtained fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency on justification
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to RAYTHEON COMPANY. B-2 RMP 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 $33.6 million.
What is the period of performance?
Start: 2012-08-31. End: 2014-09-30.
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 the absence of other qualified sources. For the B-2 RMP Antenna, it's likely tied to specific integration requirements with the B-2 platform, potentially held by Raytheon as the original equipment manufacturer or a sole provider of the specialized technology.
How does the $33.6 million price compare to industry benchmarks for similar specialized antennas?
Without specific technical details and market data for comparable B-2 RMP antennas, a direct price comparison is challenging. However, sole-source contracts often carry a premium. Industry benchmarks for highly specialized, mission-critical aerospace components can range significantly, but the lack of competition here suggests the price may not reflect the most cost-effective option available.
What is the long-term risk associated with relying on a sole-source provider for critical aircraft parts?
The long-term risk includes potential price escalation, reduced innovation, and supply chain vulnerability. If Raytheon faces production issues or decides to increase prices significantly, the DoD has limited leverage. This dependence can also hinder the adoption of newer, potentially more efficient technologies from other manufacturers.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 36
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: $33,561,745
Exercised Options: $33,561,745
Current Obligation: $33,561,745
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-31
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-04-24
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