DoD Awards Raytheon $14M for Improved Thermal Sight System Under Sole-Source Contract
Contract Overview
Contract Amount: $14,018,502 ($14.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2007-07-03
End Date: 2010-07-14
Contract Duration: 1,107 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SANG IMPROVED THERMAL SIGHT SYSTEM
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to RAYTHEON COMPANY for work described as: SANG IMPROVED THERMAL SIGHT SYSTEM Key points: 1. Significant investment in advanced defense technology. 2. Sole-source award raises questions about price discovery and competition. 3. Contract duration of over 3 years suggests a substantial program. 4. Focus on Search, Detection, Navigation systems highlights critical military capabilities.
Value Assessment
Rating: questionable
The contract value of $14M for a thermal sight system is difficult to benchmark without comparable sole-source awards. The lack of competition inherently limits the ability to assess if the price is optimal compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no other vendors were considered. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation compared to an open competition.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, which could result in a less efficient allocation of resources.
Public Impact
Enhances soldier's ability to detect targets in various conditions. Supports critical surveillance and targeting missions for the Army. Potential for technological advancements in night vision and thermal imaging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Lack of publicly available benchmark data.
- Contract awarded in 2007, may not reflect current market prices.
Positive Signals
- Addresses critical military need for advanced optics.
- Long-term contract suggests sustained operational requirement.
Sector Analysis
The Department of Defense is a major consumer of advanced electronics and systems. Spending in the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector is substantial, driven by the need for cutting-edge military technology.
Small Business Impact
This contract was awarded to Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for SMB participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for the lack of competition. Oversight should focus on the justification for sole-source procurement and the negotiation process.
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
- Sole-source award
- Lack of competition
- Limited public pricing data
- Contract awarded over a decade ago
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to RAYTHEON COMPANY. SANG IMPROVED THERMAL SIGHT SYSTEM
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 $14.0 million.
What is the period of performance?
Start: 2007-07-03. End: 2010-07-14.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. Without detailed documentation, it's difficult to ascertain the precise reasons. However, the 'NOT AVAILABLE FOR COMPETITION' status suggests a deliberate decision to bypass the competitive process, potentially due to specialized requirements or existing sole-source relationships for this specific system.
How does the $14M contract value compare to similar thermal sight systems procured competitively?
Direct comparison is challenging due to the sole-source nature of this award and the age of the contract (awarded in 2007). Competitive procurements for advanced thermal imaging systems can vary widely in price based on features, resolution, and quantity. Without access to specific performance metrics and competitive bids from that era, it's difficult to definitively state if $14M represents a fair market price.
What is the expected operational lifespan and effectiveness of the SANG Improved Thermal Sight System?
The contract duration of 1107 days (approximately 3 years) suggests a significant deployment and operational period. Improved thermal sight systems are crucial for enhancing situational awareness, target acquisition, and survivability in low-visibility conditions. The effectiveness is tied to its ability to provide clear, reliable thermal imagery, directly impacting mission success and soldier safety.
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: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV07R0690
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY DR, MC KINNEY, TX, 75071
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,018,502
Exercised Options: $14,018,502
Current Obligation: $14,018,502
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-07-03
Current End Date: 2010-07-14
Potential End Date: 2010-07-14 12:07:00
Last Modified: 2021-07-29
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