DoD Awards Raytheon $22.5M for 2GF CITV Hardware, Sole-Sourced

Contract Overview

Contract Amount: $22,509,422 ($22.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2024-12-11

End Date: 2026-12-31

Contract Duration: 750 days

Daily Burn Rate: $30.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to RAYTHEON COMPANY for work described as: SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS Key points: 1. Significant investment in advanced thermal imaging for military command systems. 2. Sole-source award to Raytheon raises questions about price competitiveness. 3. Long-term contract (2026) suggests ongoing need for this technology. 4. Focus on Search, Detection, and Navigation systems highlights critical defense capabilities.

Value Assessment

Rating: questionable

The contract value of $22.5 million for 2GF CITV hardware components is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced thermal imaging systems.

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 limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying a premium for the required hardware components.

Public Impact

Enhances battlefield situational awareness for military commanders. Supports critical search and detection operations in various environments. Ensures continued technological advantage in navigation and guidance systems. Potential for future upgrades and sustainment contracts with the incumbent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long-term contract duration

Positive Signals

Critical defense technology
Established supplier
Clear end-of-life date

Sector Analysis

The Department of the Army's spending on Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing is crucial for maintaining technological superiority. Benchmarks for similar sole-source procurements in this specialized sector are often higher due to R&D costs and limited suppliers.

Small Business Impact

The contract was awarded to Raytheon Company, a large defense contractor. There is no indication of small business participation in this specific sole-source award, suggesting missed opportunities for small business subcontracting.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving best value. Accountability for the pricing and performance will be critical throughout the contract's duration.

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 inflated pricing without competitive pressure.
Lack of transparency in the procurement process.
Missed opportunities for small business engagement.
Dependency on a single supplier for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to RAYTHEON COMPANY. SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS

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 $22.5 million.

What is the period of performance?

Start: 2024-12-11. End: 2026-12-31.

What is the justification for the sole-source award, and has the government explored alternative solutions or potential competitors?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or lack of viable alternatives. Without a competitive process, it's imperative for the Department of Defense to thoroughly document why other sources were not considered and to ensure Raytheon's pricing is scrutinized to prevent overpayment. This requires robust internal review and potentially independent cost analysis.

How does the per-unit cost of these CITV hardware components compare to industry benchmarks for similar advanced thermal imaging systems, especially considering the lack of competition?

Assessing the per-unit cost is challenging without competitive bids. However, the government should conduct a thorough price analysis, comparing the proposed costs against historical data for similar components, commercial off-the-shelf (COTS) alternatives if applicable, and independent cost estimates. The absence of competition necessitates a more rigorous internal validation of pricing to ensure taxpayer funds are used efficiently.

What are the long-term implications for the Department of Defense's technological roadmap and budget if this sole-source relationship continues for future iterations of the CITV system?

Continuing with a sole-source provider can lead to vendor lock-in, potentially stifling innovation and increasing long-term costs. The DoD should actively plan for future procurements, perhaps by encouraging competition through modular designs or by investing in R&D to foster alternative suppliers. This proactive approach mitigates risks associated with sole-source dependency and ensures sustained technological advancement at a reasonable cost.

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: $22,509,422

Exercised Options: $22,509,422

Current Obligation: $22,509,422

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,270,021

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