DoD Awards Raytheon $96M for 3rd Gen FLIR LRIP B-Kit, Lacking Competition
Contract Overview
Contract Amount: $95,975,635 ($96.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-06-29
End Date: 2029-06-30
Contract Duration: 2,193 days
Daily Burn Rate: $43.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) LRIP LOW RATE INITIAL PRODUCTION (LRIP) B-KIT
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $96.0 million to RAYTHEON COMPANY for work described as: THE THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) LRIP LOW RATE INITIAL PRODUCTION (LRIP) B-KIT Key points: 1. Significant investment in advanced infrared technology for military applications. 2. Sole reliance on Raytheon raises concerns about potential price inflation and limited innovation. 3. Long contract duration (2023-2029) necessitates careful monitoring of costs and performance. 4. The contract is for a critical component, impacting operational capabilities.
Value Assessment
Rating: questionable
The contract value of $95.9M for the 3rd Gen FLIR LRIP B-Kit is difficult to assess without comparable contract data. Given the sole-source nature, there's a risk of inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant contract raises concerns about the government securing the best possible price for advanced infrared technology.
Public Impact
Enhances battlefield situational awareness and targeting capabilities for the Army. Supports ongoing modernization efforts within the Department of Defense. Potential for future upgrades and integration into other platforms. Ensures continued availability of critical infrared sensor technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for cost overruns
Positive Signals
- Acquisition of advanced technology
- Supports military modernization
- Definitive contract type
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for defense modernization, but often involves high R&D costs and specialized manufacturing.
Small Business Impact
The contract was awarded to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, which is a missed opportunity for economic inclusion.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and effective delivery. Robust performance metrics and regular reviews are essential.
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 competitive bidding
- Long-term contract duration
- Potential for cost overruns
- Limited transparency in pricing
- Dependency on a single supplier
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 $96.0 million to RAYTHEON COMPANY. THE THIRD GENERATION FORWARD LOOKING INFRARED (3GEN FLIR) LRIP LOW RATE INITIAL PRODUCTION (LRIP) B-KIT
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 $96.0 million.
What is the period of performance?
Start: 2023-06-29. End: 2029-06-30.
What is the projected return on investment for this advanced infrared system, considering its long-term operational benefits?
The return on investment is primarily measured in enhanced warfighter effectiveness, improved mission success rates, and reduced risk to personnel. Quantifying this in monetary terms is challenging but crucial for justifying the expenditure. The long-term benefits are expected to outweigh the initial costs through superior battlefield awareness and targeting capabilities.
What are the specific risks associated with relying solely on Raytheon for this critical technology over a six-year period?
The primary risks include potential price escalation due to lack of competition, reduced incentive for innovation from the sole provider, and supply chain vulnerabilities if Raytheon faces production issues. Dependence on a single source also limits the government's leverage in future negotiations or technology transitions.
How will the effectiveness of the 3rd Gen FLIR LRIP B-Kit be measured and validated throughout its lifecycle?
Effectiveness will be measured through rigorous testing and evaluation protocols, including operational assessments and performance benchmarks against defined requirements. Key metrics will likely include sensor resolution, detection range, reliability, and integration success with existing platforms. Post-delivery support and user feedback will also inform ongoing effectiveness assessments.
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
Solicitation ID: W909MY22R0002
Offers Received: 1
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: $165,620,778
Exercised Options: $95,975,635
Current Obligation: $95,975,635
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $10,520,501
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-29
Current End Date: 2029-06-30
Potential End Date: 2029-06-30 12:06:00
Last Modified: 2025-12-05
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