Raytheon Awarded $34.1M for FMS Romania Office, Part of Ongoing Support

Contract Overview

Contract Amount: $34,138,008 ($34.1M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-03-14

End Date: 2027-02-28

Contract Duration: 1,081 days

Daily Burn Rate: $31.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 17TH DELIVERY ORDER FOR FMS ROMANIA OFFICE

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to RAYTHEON COMPANY for work described as: 17TH DELIVERY ORDER FOR FMS ROMANIA OFFICE Key points: 1. Significant contract value for ongoing support services. 2. Sole-source award raises questions about price discovery. 3. Long-term contract duration (over 3 years) indicates sustained need. 4. Focus on navigation and guidance systems suggests critical operational support.

Value Assessment

Rating: fair

The $34.1M award for this delivery order appears to be part of a larger, potentially established contract. Without access to the base contract's pricing and comparison to similar FMS support contracts, a precise value assessment is difficult. The lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This delivery order was not competed, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award may result in suboptimal pricing, impacting taxpayer value.

Public Impact

Supports U.S. foreign military sales efforts in Romania. Ensures continued operational readiness for supported assets. Potential for increased costs due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of transparency in pricing
Long contract duration without competition

Positive Signals

Supports critical foreign military sales
Ensures operational continuity

Sector Analysis

This contract falls within the defense sector, specifically supporting navigation and guidance systems. Spending in this area is often driven by national security needs and foreign policy objectives, with significant government investment.

Small Business Impact

The awardee, Raytheon Company, is a large defense contractor. There is no indication that small businesses were involved in this specific delivery order, which is common for large sole-source awards.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Army's contracting activity suggests established oversight mechanisms, but the lack of competition warrants scrutiny.

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 limits price competition.
Potential for cost overruns due to lack of competition.
Long-term duration without competitive re-evaluation.
Lack of transparency on base contract pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to RAYTHEON COMPANY. 17TH DELIVERY ORDER FOR FMS ROMANIA OFFICE

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 $34.1 million.

What is the period of performance?

Start: 2024-03-14. End: 2027-02-28.

What is the total value of the base contract from which this delivery order was issued, and how does its pricing compare to similar sole-source support contracts for FMS programs?

Determining the total value of the base contract is essential for a comprehensive understanding of the overall financial commitment. Benchmarking this pricing against similar sole-source support contracts for Foreign Military Sales (FMS) programs would reveal whether the government is receiving fair market value. Without this comparative data, it's challenging to assess the true cost-effectiveness of this award.

What specific justification was provided for awarding this delivery order on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must typically demonstrate that only one responsible source can provide the required supplies or services. Exploring whether alternative competitive strategies were considered, even if ultimately deemed unsuitable, provides insight into the diligence exercised in seeking the best value for taxpayer funds.

How will the effectiveness of the navigation and guidance systems supported by this contract be measured, and what are the key performance indicators (KPIs)?

Measuring the effectiveness of supported navigation and guidance systems is paramount to ensuring mission success and justifying the expenditure. Key Performance Indicators (KPIs) should be clearly defined and tracked, focusing on aspects like system reliability, accuracy, uptime, and contribution to operational objectives. Regular reporting and analysis of these KPIs will allow for assessment of contractor performance and overall program value.

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: $34,138,008

Exercised Options: $34,138,008

Current Obligation: $34,138,008

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $7,691,394

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