DoD's $83.8M ATNAVICS Contract Awarded to Raytheon Company Under Full and Open Competition
Contract Overview
Contract Amount: $83,800,175 ($83.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2011-03-31
End Date: 2016-12-31
Contract Duration: 2,102 days
Daily Burn Rate: $39.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ATNAVICS ACQUISTION WITH OPTION YEARS.
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
Department of Defense obligated $83.8 million to RAYTHEON COMPANY for work described as: ATNAVICS ACQUISTION WITH OPTION YEARS. Key points: 1. The contract, valued at $83.8 million, was awarded to Raytheon Company. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 334511 relates to Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.
Value Assessment
Rating: good
The contract's value of $83.8 million appears reasonable for a multi-year acquisition of navigation and guidance systems. Benchmarking against similar DoD contracts for specialized electronic systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while multiple sources were considered, specific exclusions were made, potentially impacting the breadth of competition and price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure the best value for taxpayers by fostering a competitive environment.
Public Impact
This contract supports the Department of the Army's operational capabilities in navigation and guidance systems. The award to Raytheon Company signifies continued investment in advanced defense technologies. The duration of the contract (2102 days) indicates a long-term need for these systems. The firm fixed price contract structure provides cost certainty for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of source exclusions on competition.
- Need for detailed cost analysis to ensure fair pricing.
Positive Signals
- Firm Fixed Price contract type.
- Full and Open Competition awarded.
- Long contract duration suggests sustained need.
Sector Analysis
The defense electronics sector, particularly navigation and guidance systems, is characterized by high technological complexity and significant R&D investment. Spending in this area is driven by evolving military requirements and technological advancements.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for acquisitions. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants scrutiny to ensure fairness and compliance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition due to source exclusions.
- Need for detailed cost analysis to validate pricing.
- Reliance on a single contractor (Raytheon Company) for a significant duration.
- Complexity of specialized defense electronics may lead to cost overruns if not managed tightly.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.8 million to RAYTHEON COMPANY. ATNAVICS ACQUISTION WITH OPTION YEARS.
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 $83.8 million.
What is the period of performance?
Start: 2011-03-31. End: 2016-12-31.
What specific sources were excluded and why, and did this exclusion limit competitive pricing?
The exclusion of specific sources in a 'full and open competition' scenario warrants further investigation. Understanding the rationale behind these exclusions is crucial to determine if they were justified based on technical capabilities or other factors. If the exclusions were not well-founded, it could have limited the competitive landscape, potentially leading to less favorable pricing for the government and taxpayers.
How does the awarded price compare to industry benchmarks for similar navigation and guidance systems?
A thorough comparison of the awarded price against industry benchmarks for comparable navigation and guidance systems is essential. This analysis should consider factors such as system complexity, technological sophistication, and performance specifications. Without such a benchmark, it is difficult to definitively assess whether the $83.8 million represents a fair and reasonable price for the acquired capabilities.
What is the long-term strategic value of these navigation and guidance systems to the Department of the Army?
The long-term strategic value of these systems lies in their contribution to the Department of the Army's operational effectiveness, mission readiness, and technological superiority. Understanding how these systems integrate with broader military strategies and future operational concepts will clarify their enduring importance and justify the sustained investment over the contract's duration.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W31P4Q10R0074
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1001 BOSTON POST RD E, MARLBOROUGH, MA, 01752
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: $83,800,175
Exercised Options: $83,800,175
Current Obligation: $83,800,175
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $84,786,145
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-31
Current End Date: 2016-12-31
Potential End Date: 2022-09-16 12:09:00
Last Modified: 2020-03-25
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