Raytheon Company awarded $12.4M contract for Radio & TV Comm Equipment, likely for a specific defense need

Contract Overview

Contract Amount: $12,416,433 ($12.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2006-02-03

End Date: 2010-09-16

Contract Duration: 1,686 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200605!001563!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CL005 !A!N! !N! ! !20060203!20070430!963995485!001339159!001339159!N!RAYTHEON COMPANY !1010 PRODUCTION RD !FORT WAYNE !IN!46808!25000!003!18!FORT WAYNE !ALLEN !INDIANA !+000012957621!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !3! ! ! ! ! !99990909!B! ! !N!A!D!N!J!1!001!N!2A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! !Y! ! ! !0001! !

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to RAYTHEON COMPANY for work described as: 200605!001563!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CL005 !A!N! !N! ! !20060203!20070430!963995485!001339159!001339159!N!RAYTHEON COMPANY !1010 PRODUCTION RD !FORT WAYNE !IN!46808!25000!003!18!FORT WAYNE !ALLE… Key points: 1. Contract awarded to a single, established defense contractor, suggesting a specialized requirement. 2. The firm fixed-price contract type indicates a defined scope and cost structure. 3. The contract duration of over 4 years suggests a long-term need for the equipment. 4. The award was not competed, raising questions about potential cost efficiencies. 5. The equipment category points to a role in defense communications infrastructure.

Value Assessment

Rating: fair

The contract value of $12.4 million for Radio & TV Comm Equipment, while substantial, lacks direct comparable contract data for precise benchmarking. The firm fixed-price structure suggests the government aimed to control costs upfront. However, without competition, it's difficult to assess if this represents optimal value for money compared to what might have been achieved through a competitive bidding process. Further analysis would require understanding the specific technical requirements and market availability of such specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific product or service is only available from a single source, or when the agency determines that competition is not feasible or in the government's best interest. The lack of competition limits the opportunity for price discovery and may result in higher costs for the government compared to a fully competed award.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government did not benefit from the potential cost savings that often arise from multiple bidders vying for a contract.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense requiring specialized radio and television communication equipment. The services delivered involve the provision of specific electronic communication hardware. The geographic impact is concentrated where the equipment is deployed, likely at military installations. Workforce implications may include manufacturing and technical support roles associated with Raytheon Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated pricing.
Sole-source awards can limit innovation by not engaging a broader market.
Dependence on a single contractor for critical equipment can pose supply chain risks.

Positive Signals

Award to a known contractor like Raytheon suggests a level of trust in their capability and past performance.
Firm fixed-price contract provides cost certainty for the government.
The specific equipment category indicates a targeted and potentially essential defense capability.

Sector Analysis

The contract falls within the 'Electronics and Communication Equipment' sector, specifically 'Radio & TV Comm Equipment, Except Airborne'. This sector is vital for national defense, providing the communication backbone for military operations. The market size for such specialized defense-related electronics can be significant, though often driven by government procurement rather than broad commercial demand. Benchmarking spending in this area is challenging without knowing the exact specifications, but it represents a niche within the larger defense industrial base.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded to Raytheon Company, a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a set-aside suggests that the primary focus was on fulfilling a specific requirement with an established prime contractor, rather than on promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver the specified goods within the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract award data is generally made public.

Related Government Programs

Defense Communications Systems
Electronic Warfare Equipment
Tactical Communication Systems
Radio and Television Broadcasting Equipment Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to RAYTHEON COMPANY. 200605!001563!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CL005 !A!N! !N! ! !20060203!20070430!963995485!001339159!001339159!N!RAYTHEON COMPANY !1010 PRODUCTION RD !FORT WAYNE !IN!46808!25000!003!18!FORT WAYNE !ALLEN !INDIANA !+000012957621!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2006-02-03. End: 2010-09-16.

What specific type of Radio & TV Comm Equipment was procured under this contract, and what is its intended use within the Department of Defense?

The provided data classifies the equipment under NAICS code 334220, 'Radio & TV Comm Equipment, Except Airborne'. While the exact specifications are not detailed, this category typically includes devices such as transmitters, receivers, antennas, and related broadcasting or communication systems. Given the Department of Defense as the agency, this equipment likely serves critical functions such as battlefield communications, intelligence gathering, command and control systems, or base communications infrastructure. The 'Except Airborne' designation suggests ground-based or ship-based applications rather than aircraft-mounted systems. Without further details, its precise role remains speculative but is undoubtedly tied to operational communication needs.

Can the $12.4 million contract value be benchmarked against similar sole-source awards for comparable communication equipment?

Benchmarking this $12.4 million sole-source contract against similar awards is challenging due to the limited data available and the inherent nature of sole-source procurements. Sole-source contracts often involve unique or highly specialized equipment, making direct comparisons difficult. Furthermore, the specific technical requirements, quantities, and performance standards of the procured equipment are not detailed. While the value is substantial, without knowing the exact nature of the 'Radio & TV Comm Equipment', it's impossible to definitively say if it represents a fair market price. Generally, sole-source awards are less likely to achieve the cost efficiencies seen in competitive bidding, suggesting this value might be higher than a competed equivalent.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

Awarding a $12.4 million contract on a sole-source basis carries several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the government does not benefit from the cost-saving pressures of multiple vendors. Secondly, it can stifle innovation by not engaging a wider range of potential suppliers who might offer alternative or more advanced solutions. Thirdly, it creates a dependency on a single contractor, which can pose supply chain risks if the contractor experiences production issues, financial instability, or decides to discontinue the product line. Finally, it raises concerns about transparency and the potential for the government not receiving the best possible value for taxpayer money.

What is Raytheon Company's track record with the Department of Defense for similar types of communication equipment contracts?

Raytheon Company (now RTX) has a long and extensive history of contracting with the Department of Defense across a wide array of defense systems, including significant involvement in electronics, communications, and intelligence, surveillance, and reconnaissance (ISR) technologies. While specific details on their past performance solely for 'Radio & TV Comm Equipment, Except Airborne' at this exact value are not provided in the snippet, Raytheon is a major defense prime contractor known for producing complex electronic systems. Their track record generally indicates a capability to deliver sophisticated defense hardware. However, the performance on any specific contract, especially sole-source ones, can vary, and a comprehensive review would require examining detailed contract performance reports and historical award data beyond this single entry.

How does the $12.4 million award compare to historical spending patterns for Radio & TV Communication Equipment by the Department of Defense?

Comparing this $12.4 million award to historical spending patterns for 'Radio & TV Comm Equipment, Except Airborne' by the Department of Defense requires access to broader historical procurement databases. The provided data snippet represents a single contract award from 2006-2007. The Department of Defense procures vast quantities of electronic and communication equipment annually, with spending fluctuating based on evolving threats, technological advancements, and strategic priorities. A single $12.4 million contract, while significant for its specific purpose, might represent a small fraction of the DoD's overall spending in this category over a given year or across multiple years. To assess historical patterns, one would need to aggregate spending data for this specific equipment category over extended periods and analyze trends, budget allocations, and the prevalence of sole-source versus competitive awards.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 1010 PRODUCTION RD, FORT WAYNE, IN, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline