Raytheon Company awarded $31.7M for thermal viewer hardware, a sole-source contract for critical defense components

Contract Overview

Contract Amount: $31,713,770 ($31.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2025-12-05

End Date: 2028-11-30

Contract Duration: 1,091 days

Daily Burn Rate: $29.1K/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 $31.7 million to RAYTHEON COMPANY for work described as: SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS Key points: 1. Contract awarded to a single, established provider, raising questions about price competitiveness. 2. Focus on hardware components suggests a need for specialized, potentially high-cost manufacturing. 3. Long contract duration (nearly 3 years) indicates a sustained requirement for these thermal viewers. 4. The 'not competed' status warrants scrutiny regarding the justification for avoiding a broader bidding process. 5. Texas is the place of performance, potentially benefiting the regional economy. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without competitive bids. The $31.7 million award for 'SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS' suggests a significant investment in specialized technology. Given the sole-source nature, it's difficult to assess if this represents a fair market price or if alternative solutions could have been procured at a lower cost. Further analysis would require understanding the specific technological advancements and unique capabilities offered by Raytheon Company.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning the Department of the Army directly awarded it to Raytheon Company without soliciting offers from other potential vendors. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The absence of competition limits the government's ability to explore a range of pricing options and potentially secure a more cost-effective solution.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most competitive pricing available in the market. Without a bidding process, there's less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall expenditure for the government.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the advanced thermal viewer technology for enhanced situational awareness and operational effectiveness. The contract delivers critical hardware components for the Second Generation (2GF) Commanders Independent Thermal Viewer (CITV). The place of performance is Texas, suggesting potential economic benefits and job creation within the state. This procurement supports the defense industrial base and ensures the availability of specialized military equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises concerns about whether the most innovative or cost-effective solutions were considered.
The specific nature of 'hardware components' for a thermal viewer could imply high manufacturing costs and limited supplier options.

Positive Signals

Firm Fixed Price contract structure shifts cost overrun risk to the contractor.
Award to a known entity (Raytheon Company) suggests a reliance on established capabilities and potentially reduced execution risk.
The contract supports a critical defense capability, ensuring operational readiness for the Army.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, specifically NAICS code 334511. This industry is characterized by high technological sophistication and significant R&D investment. The market for advanced defense optics and thermal imaging systems is often dominated by a few large, specialized contractors due to the stringent performance requirements and security clearances needed. Comparable spending benchmarks are difficult to ascertain without competitive data, but such specialized defense hardware typically commands premium pricing.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. Furthermore, the 'no' value of 0 suggests no reported subcontracting goals for small businesses. This means the primary contractor, Raytheon Company, is likely to perform the majority of the work, with limited direct opportunities for small businesses within this specific award, unless they are part of Raytheon's broader supply chain.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting and program management offices. As a Department of Defense contract, it may also be subject to review by the Department of Defense Inspector General. Transparency is facilitated through contract award databases, but the sole-source nature limits public insight into the negotiation and justification process. Accountability will be measured against the delivery of specified hardware components by the contract's end date.

Related Government Programs

Night Vision Systems
Thermal Imaging Technology
Military Hardware Procurement
Defense Electronics Manufacturing
Army Aviation Support Equipment

Risk Flags

Sole-source award requires strong justification.
Potential for higher costs due to lack of competition.
Need for clear performance metrics and quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 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 $31.7 million.

What is the period of performance?

Start: 2025-12-05. End: 2028-11-30.

What is the specific technological advancement or unique capability that necessitated a sole-source award to Raytheon Company for the CITV hardware components?

The justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For the 'SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS,' Raytheon Company may possess patented technology, specialized manufacturing processes, or unique integration expertise essential for this specific thermal viewer generation. Without a competitive bidding process, the detailed technical rationale and evidence supporting these claims are not publicly available. Understanding the specific 'second generation' advancements and their reliance on Raytheon's intellectual property or existing infrastructure would be crucial to validating the necessity of this sole-source approach.

How does the $31.7 million contract value compare to previous procurements of similar thermal viewer components, either by the Army or other defense agencies?

Direct comparison of the $31.7 million award for 'SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS' to previous procurements is challenging due to the sole-source nature of this award and the potential for technological evolution. If previous generations of CITV hardware were procured competitively, a comparison of unit costs or total contract values could reveal significant price differences. However, if this 'second generation' represents a substantial upgrade or utilizes novel technology, direct cost comparisons might be misleading. A thorough analysis would require identifying specific component types, quantities, and the timeframes of prior contracts, alongside understanding the technological leap between generations to contextualize the current spending.

What are the key performance metrics and quality assurance measures in place to ensure the successful delivery of the CITV hardware components by Raytheon Company?

The contract specifies a Firm Fixed Price (FFP) type, which inherently places the responsibility for meeting performance and quality standards on the contractor, Raytheon Company. Key performance metrics would typically be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), outlining specifications for the hardware components, such as resolution, durability, power consumption, and operational temperature ranges. Quality assurance measures likely include government acceptance testing upon delivery, adherence to specific manufacturing standards (e.g., ISO certifications), and potentially milestone reviews during production. The Department of the Army's quality assurance representatives (QARs) would be responsible for monitoring compliance and ensuring the delivered components meet all contractual requirements before final acceptance.

What is the historical spending pattern of the Department of the Army on thermal imaging and related defense hardware, and how does this contract fit within that trend?

The Department of the Army, like other branches of the U.S. military, consistently invests significant resources in advanced sensor technologies, including thermal imaging systems, to maintain battlefield superiority. Historical spending patterns reveal a continuous demand for upgrades and new capabilities driven by evolving threats and technological advancements. This $31.7 million contract for the 'SECOND GENERATION (2GF) COMMANDERS INDEPENDENT THERMAL VIEWER (CITV) HARDWARE COMPONENTS' fits within this trend as a specific investment in enhancing situational awareness and targeting capabilities. While the exact historical figures for CITV procurement are not provided, the overall trend indicates substantial and ongoing funding for such critical defense hardware, often awarded through a mix of competitive and sole-source contracts depending on the specific technological requirements and market dynamics.

Are there any identified risks associated with Raytheon Company's performance on this contract, such as past performance issues or supply chain vulnerabilities?

Assessing specific risks associated with Raytheon Company's performance on this particular contract requires access to detailed past performance evaluations and supply chain risk assessments, which are typically not fully disclosed in public contract data. However, Raytheon is a major defense contractor with extensive experience in producing complex systems, suggesting a generally established capability. Potential risks could include delays in component manufacturing or delivery, unforeseen technical challenges during integration, or disruptions in their supply chain for specialized materials. The sole-source nature of the award means the government has less leverage to mitigate risks through competitive pressure, making robust contract management and oversight by the Army crucial.

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: $31,713,770

Exercised Options: $31,713,770

Current Obligation: $31,713,770

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