DoD Awards $19.8M for Radar Digital Processor Upgrade Kits to Raytheon Company
Contract Overview
Contract Amount: $19,855,362 ($19.9M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2013-06-14
End Date: 2015-01-31
Contract Duration: 596 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RADAR DIGITAL PROCESSOR UPGRADE KITS
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $19.9 million to RAYTHEON COMPANY for work described as: RADAR DIGITAL PROCESSOR UPGRADE KITS Key points: 1. Contract awarded to Raytheon Company for critical radar system upgrades. 2. Spending is concentrated within the Guided Missile and Space Vehicle Manufacturing sector. 3. The contract was not competed, raising potential value concerns. 4. A firm fixed-price contract was used, providing cost certainty.
Value Assessment
Rating: questionable
The contract value of $19.8M for upgrade kits is difficult to assess without specific unit details or comparison points. The lack of competition suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these radar processor upgrade kits.
Public Impact
Enhances critical radar capabilities for military operations. Supports advanced defense technology and manufacturing. Potential impact on readiness and operational effectiveness of guided missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost justification
Positive Signals
- Firm fixed-price contract provides cost certainty
- Addresses critical defense system upgrade needs
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense spending. Benchmarks for similar upgrade kits are not readily available due to the niche nature and proprietary technology involved.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went directly to a large defense contractor.
Oversight & Accountability
The lack of competition warrants further oversight to ensure the price paid was fair and reasonable. Accountability for the sole-source justification should be reviewed.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for overpricing
- Lack of competitive benchmarking
- Limited transparency on cost justification
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to RAYTHEON COMPANY. RADAR DIGITAL PROCESSOR UPGRADE KITS
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 $19.9 million.
What is the period of performance?
Start: 2013-06-14. End: 2015-01-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of other capable sources. Without access to the specific contract documentation, the precise reason remains unclear, but it is crucial for ensuring fair pricing and avoiding unnecessary expenditure.
How does the unit cost of these upgrade kits compare to similar systems or previous procurements?
Direct comparison is challenging due to the sole-source nature and lack of publicly available benchmark data for these specific radar digital processor upgrade kits. A thorough review of internal cost analyses and historical pricing, if available, would be necessary to determine if the price paid was competitive or inflated.
What is the expected impact of these upgrades on the operational effectiveness of the radar systems?
These upgrades are expected to enhance the performance, reliability, and potentially the capabilities of the radar systems. This could translate to improved target detection, tracking, and overall mission success for the platforms utilizing these processors, thereby increasing military readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
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: 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: $19,855,362
Exercised Options: $19,855,362
Current Obligation: $19,855,362
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-14
Current End Date: 2015-01-31
Potential End Date: 2015-01-31 00:00:00
Last Modified: 2015-09-01
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