Raytheon Awarded $54.8M for CITV Sight Assemblies and Servo Electronics by Army
Contract Overview
Contract Amount: $54,823,073 ($54.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2023-12-07
End Date: 2026-08-31
Contract Duration: 998 days
Daily Burn Rate: $54.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CITV SIGHT ASSEMBLIES QTY 34 CITV SAS IN CONTAINER QTY 17 SERVO ELECTRONICS UNITS QTY 34 SEUS IN CONTAINER QTY 35 AZIMUTH DRIVE ASSEMBLIES QTY 34
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $54.8 million to RAYTHEON COMPANY for work described as: CITV SIGHT ASSEMBLIES QTY 34 CITV SAS IN CONTAINER QTY 17 SERVO ELECTRONICS UNITS QTY 34 SEUS IN CONTAINER QTY 35 AZIMUTH DRIVE ASSEMBLIES QTY 34 Key points: 1. Significant award for complex defense components, including sight assemblies and servo electronics. 2. Sole-source award to Raytheon Company, a major defense contractor. 3. Potential for cost overruns given the 'fair' value assessment. 4. The sector is dominated by a few large, established players.
Value Assessment
Rating: fair
The awarded price of $54.8M for 34 CITV Sight Assemblies and 34 Servo Electronics units appears slightly above the benchmark of $54.9M for similar contracts, suggesting a potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Raytheon Company. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially impacting price discovery.
Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued availability of critical components for military systems. Supports a major defense contractor and its supply chain. Highlights the reliance on specialized, high-cost defense manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Award price is slightly above benchmark.
- Long contract duration (998 days).
Positive Signals
- Award to established, experienced contractor.
- Procurement of essential defense systems.
Sector Analysis
This award falls within the "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" sector. Spending in this area is typically high due to the specialized nature and advanced technology required for defense applications.
Small Business Impact
The award was made directly to Raytheon Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Army is the procuring agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price terms.
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
- Award price slightly above benchmark
- Lack of transparency on justification for sole-source
- Long contract duration
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 $54.8 million to RAYTHEON COMPANY. CITV SIGHT ASSEMBLIES QTY 34 CITV SAS IN CONTAINER QTY 17 SERVO ELECTRONICS UNITS QTY 34 SEUS IN CONTAINER QTY 35 AZIMUTH DRIVE ASSEMBLIES QTY 34
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 $54.8 million.
What is the period of performance?
Start: 2023-12-07. End: 2026-08-31.
What is the specific justification for the sole-source award to Raytheon Company for these CITV sight assemblies and servo electronics?
The justification for a sole-source award typically involves factors such as unique technical capabilities, proprietary technology, or the unavailability of alternative sources that meet the stringent requirements of the defense system. Without further details, it's difficult to ascertain the precise reason, but it implies a critical need that only Raytheon can fulfill.
How will the Army ensure cost-effectiveness and prevent potential overpricing given the sole-source nature of this contract?
The Army will likely employ robust contract management and oversight. This may include detailed cost analysis, review of historical pricing, benchmarking against similar systems (even if not directly comparable), and strict adherence to the firm fixed price terms to limit the contractor's ability to increase costs beyond the agreed-upon amount.
What is the long-term strategic value of procuring these specific CITV sight assemblies and servo electronics from Raytheon?
These components are likely integral to the operational effectiveness of specific military platforms. Ensuring a reliable supply chain for these critical parts maintains the readiness and capability of the armed forces. The long-term value lies in supporting ongoing defense missions and potentially future upgrades or sustainment of the associated systems.
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: Rockwell Collins Australia PTY Limited
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: $54,823,073
Exercised Options: $54,823,073
Current Obligation: $54,823,073
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $5,219,827
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: 2023-12-07
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 12:08:00
Last Modified: 2025-05-28
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)