DoD awards $35.4M for Abrams tank hardware components to Raytheon Company
Contract Overview
Contract Amount: $35,411,946 ($35.4M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2019-10-30
End Date: 2021-11-30
Contract Duration: 762 days
Daily Burn Rate: $46.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER W909MY-20-F-0017 UNDER IDIW W909MY-19-D-0015 FOR 2GF BKIT TO PROCURE CITV HARDWARE COMPONENTS FOR PM ABRAMS.
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $35.4 million to RAYTHEON COMPANY for work described as: DELIVERY ORDER W909MY-20-F-0017 UNDER IDIW W909MY-19-D-0015 FOR 2GF BKIT TO PROCURE CITV HARDWARE COMPONENTS FOR PM ABRAMS. Key points: 1. Spending is for critical hardware components for the Abrams tank program. 2. Raytheon Company is the sole awardee, indicating a lack of competition. 3. The contract is a firm-fixed-price delivery order, providing cost certainty. 4. The sector is Defense, specifically focusing on military vehicle components.
Value Assessment
Rating: questionable
The award amount of $35.4M for hardware components appears substantial. Without specific unit details or comparable contract data, it's difficult to definitively assess pricing. However, the lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical hardware components.
Public Impact
Ensures continued modernization and operational readiness of the Abrams main battle tank fleet. Supports the defense industrial base by providing contracts to major defense manufacturers. Potential for increased costs due to sole-source award impacts overall defense budget allocation. Hardware components are essential for the performance and survivability of armored vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Firm-fixed-price contract
- Supports critical defense program
Sector Analysis
This contract falls within the Defense sector, specifically for military vehicle components. Spending benchmarks for similar hardware procurements are highly variable based on specific components and quantities, but significant sole-source awards warrant scrutiny.
Small Business Impact
The awardee is Raytheon Company, a large defense contractor. There is no indication that small businesses were involved in this specific delivery order, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The lack of competition suggests that a justification for other than full and open competition should be thoroughly reviewed for adequacy.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Limited transparency in pricing
- No small business participation evident
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.4 million to RAYTHEON COMPANY. DELIVERY ORDER W909MY-20-F-0017 UNDER IDIW W909MY-19-D-0015 FOR 2GF BKIT TO PROCURE CITV HARDWARE COMPONENTS FOR PM ABRAMS.
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $35.4 million.
What is the period of performance?
Start: 2019-10-30. End: 2021-11-30.
What specific hardware components are being procured, and what is the justification for not competing this requirement?
The data indicates the procurement is for 'CITV HARDWARE COMPONENTS FOR PM ABRAMS'. The justification for not competing this requirement is not provided in the data. A thorough review of the sole-source justification is necessary to ensure it aligns with federal acquisition regulations and that no viable competitive alternatives were overlooked.
What is the historical pricing for these components, and how does this award compare to previous procurements?
Historical pricing data for these specific CITV hardware components is not available in the provided information. Without this data, a direct comparison is impossible. However, given the sole-source nature of this award, it is crucial to benchmark against any available industry data or previous competitive awards for similar items to assess value.
What is the potential impact on Abrams tank readiness if these components are not procured efficiently and cost-effectively?
The efficient and cost-effective procurement of these hardware components is critical for maintaining the operational readiness and modernization of the Abrams tank fleet. Delays or significant cost overruns due to a lack of competition could impact the availability of these vital platforms for military operations and potentially strain the defense budget.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071
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: $35,411,946
Exercised Options: $35,411,946
Current Obligation: $35,411,946
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $780,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W909MY19D0015
IDV Type: IDC
Timeline
Start Date: 2019-10-30
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2025-04-24
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