DoD's $27.5M UCA for FMS R&R with Raytheon Company: A Cost Plus Fixed Fee Contract

Contract Overview

Contract Amount: $27,522,099 ($27.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2010-07-29

End Date: 2018-12-31

Contract Duration: 3,077 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: UCA FOR FMS R&R

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to RAYTHEON COMPANY for work described as: UCA FOR FMS R&R Key points: 1. Contract awarded to Raytheon Company for $27.5M. 2. The contract type is Cost Plus Fixed Fee. 3. This contract was not competed, raising potential value concerns. 4. The sector is Other Electronic Component Manufacturing, a niche area.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee structure can incentivize cost overruns. Without competitive bidding, it's difficult to assess if the price is fair market value compared to similar contracts for electronic components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition likely resulted in a higher cost to taxpayers than a fully competed contract would have.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense relies on this component for FMS R&R, highlighting its critical nature. Long contract duration (2010-2018) suggests a sustained need for the service or product.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns

Positive Signals

Awarded to a known entity (Raytheon)
Specific application (FMS R&R)

Sector Analysis

The contract falls under 'Other Electronic Component Manufacturing,' a broad category. Benchmarking spending in this specific niche is challenging without more detailed product information, but defense-related electronics often carry a premium.

Small Business Impact

The contract was awarded to Raytheon Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for a sole-source award. Further review would be needed to confirm if proper procedures were followed.

Related Government Programs

Other Electronic Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs due to sole-source award
Cost-plus contract type can lead to cost overruns
Limited transparency on justification for non-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to RAYTHEON COMPANY. UCA FOR FMS R&R

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 $27.5 million.

What is the period of performance?

Start: 2010-07-29. End: 2018-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review of the contract file would be necessary to ascertain the specific rationale and verify its adequacy.

How does the final cost compare to the initial estimates, given the Cost Plus Fixed Fee structure?

The data provided only shows the total award amount ($27.5M) and does not detail the initial estimates or the breakdown of actual costs versus fixed fee. For Cost Plus Fixed Fee contracts, the government pays the actual costs incurred plus a predetermined fixed fee. Analyzing the final cost against estimates would require access to detailed financial reporting for this contract.

What is the strategic importance of FMS R&R, and how critical is Raytheon's component to its successful execution?

FMS R&R likely refers to Foreign Military Sales Readiness and Sustainment, a critical function for supporting allied nations' defense capabilities. The specific component manufactured by Raytheon is presumably vital for maintaining the readiness of systems provided through FMS. Its criticality underscores the importance of ensuring reliable supply chains, even if awarded non-competitively.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

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: $34,847,466

Exercised Options: $33,416,335

Current Obligation: $27,522,099

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline