DoD Awards $50.9M Sole-Source Contract for Commander Vision Enhancers to Raytheon Company
Contract Overview
Contract Amount: $50,943,710 ($50.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-04-25
End Date: 2014-03-31
Contract Duration: 1,071 days
Daily Burn Rate: $47.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS CONTRACT IS A ONE TIME PURCHASE, SOLE SOURCE, FIRM FIXED PRICE ACTION FOR COMMANDER VISION ENHANCER AND DRIVER VISION ENHANCER
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $50.9 million to RAYTHEON COMPANY for work described as: THIS CONTRACT IS A ONE TIME PURCHASE, SOLE SOURCE, FIRM FIXED PRICE ACTION FOR COMMANDER VISION ENHANCER AND DRIVER VISION ENHANCER Key points: 1. The contract is a one-time purchase for specialized vision enhancement equipment. 2. Raytheon Company, a major defense contractor, is the sole awardee. 3. The firm-fixed-price structure aims to control costs for this specific acquisition. 4. The spending falls within the Optical Instrument and Lens Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $50.9M for a one-time purchase of specialized vision equipment is difficult to benchmark without comparable sole-source procurements. The firm-fixed-price nature provides cost certainty for this specific acquisition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs compared to a competitive procurement.
Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition in this sole-source award.
Public Impact
Enhances critical vision capabilities for military personnel. Supports advanced optics technology within the defense sector. Ensures specialized equipment availability for specific operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- One-time purchase may not reflect long-term value or efficiency.
- Lack of small business participation noted.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Award to established defense contractor suggests technical capability.
Sector Analysis
This procurement falls under the Optical Instrument and Lens Manufacturing sector, which is crucial for defense applications. Spending benchmarks for sole-source, one-time purchases of highly specialized equipment are challenging to establish.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as it was awarded to Raytheon Company and the small business set-aside flag is false. This represents a missed opportunity for small business participation.
Oversight & Accountability
As a sole-source, one-time purchase, oversight would focus on ensuring the delivered product meets specifications and the price is justified given the lack of competition. Further oversight would be needed if similar future procurements are considered.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- One-time purchase
- No small business participation
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.9 million to RAYTHEON COMPANY. THIS CONTRACT IS A ONE TIME PURCHASE, SOLE SOURCE, FIRM FIXED PRICE ACTION FOR COMMANDER VISION ENHANCER AND DRIVER VISION ENHANCER
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $50.9 million.
What is the period of performance?
Start: 2011-04-25. End: 2014-03-31.
What is the justification for the sole-source award, and was a market survey conducted to confirm the lack of competition?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. A market survey is usually conducted to validate this assertion. Without further details, it's unclear if such a survey was performed or if alternative solutions were explored before deeming the procurement sole-source.
How does the unit cost of these vision enhancers compare to similar commercially available or previously procured systems?
Benchmarking the unit cost is difficult without specific product details and comparable contract data. As a sole-source award, direct price comparison is limited. However, a review of historical sole-source contracts for similar specialized defense optics could provide some context, though commercial equivalents may not offer the same level of specialized functionality.
What is the long-term operational effectiveness and sustainment plan for these vision enhancers?
The data indicates this is a one-time purchase, raising questions about the long-term plan for these vision enhancers. Understanding their operational effectiveness requires field data and user feedback. A sustainment plan, including maintenance, upgrades, and potential future procurements, would be crucial for ensuring their continued utility and value to the warfighter.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15P7T10RD033
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,943,710
Exercised Options: $50,943,710
Current Obligation: $50,943,710
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-04-25
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 12:03:00
Last Modified: 2021-02-22
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