DoD's $47.1M Jackal Systems Contract Awarded to Raytheon Company Lacked Competition
Contract Overview
Contract Amount: $47,135,200 ($47.1M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2010-10-15
End Date: 2012-04-14
Contract Duration: 547 days
Daily Burn Rate: $86.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JACKAL SYSTEMS
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46219
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $47.1 million to RAYTHEON COMPANY for work described as: JACKAL SYSTEMS Key points: 1. Contract awarded to Raytheon Company for "Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals". 2. Significant spending of $47.1M on a single contract. 3. Lack of competition raises concerns about potential overpricing and value for taxpayer money. 4. The contract falls under the Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $47.1M for instrument manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts.
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 higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these instruments, as Raytheon faced no pressure to offer the lowest possible price.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Army received specialized instruments without exploring potentially more cost-effective options. Raytheon Company secured a significant contract without facing market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Awarded to a known defense contractor
- Specific instrument manufacturing
Sector Analysis
The contract is within the Instrument Manufacturing sector, which involves the production of devices for measurement and testing. Benchmarks for this specific type of instrument manufacturing are not readily available without competitive data.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors, given the sole-source nature of the award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive sourcing strategies. Further review is needed to understand the justification for this sole-source award.
Related Government Programs
- Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification
Tags
instrument-manufacturing-for-measuring-a, department-of-defense, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.1 million to RAYTHEON COMPANY. JACKAL SYSTEMS
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 $47.1 million.
What is the period of performance?
Start: 2010-10-15. End: 2012-04-14.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to ensure no other vendors could provide the required instruments?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification and whether market research was performed. Without this information, it's impossible to confirm if alternative vendors were considered or if the sole-source decision was fully warranted.
How does the $47.1M contract value compare to similar instrument manufacturing contracts awarded competitively by the Department of Defense or other agencies?
Direct comparison is challenging without access to a database of competitively awarded contracts for similar instruments. However, the absence of competition inherently raises a red flag regarding potential overpricing. A benchmark analysis against comparable, competitively sourced contracts would be crucial to determine if the government received fair market value.
What is the long-term strategic value of these specialized electrical testing instruments to the Department of the Army, and were there any performance metrics tied to this contract?
The provided data does not detail the specific strategic value or performance metrics associated with the 'Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals' contract. Understanding the criticality of these instruments to Army operations and the inclusion of performance-based metrics would be essential for a comprehensive assessment of the contract's effectiveness and overall value.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
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: 6125 E 21ST ST, INDIANAPOLIS, IN, 07
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: $47,135,200
Exercised Options: $47,135,200
Current Obligation: $47,135,200
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2010-10-15
Current End Date: 2012-04-14
Potential End Date: 2012-04-14 00:00:00
Last Modified: 2012-08-08
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