DoD Awards Raytheon $25.8M for Antenna Elements, Lacking Competition
Contract Overview
Contract Amount: $25,842,510 ($25.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2008-03-21
End Date: 2011-03-30
Contract Duration: 1,104 days
Daily Burn Rate: $23.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ANTENNA ELEMENT PN: 11455763
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $25.8 million to RAYTHEON COMPANY for work described as: ANTENNA ELEMENT PN: 11455763 Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration (1104 days) for specialized equipment. 4. Sector is critical for military operations.
Value Assessment
Rating: questionable
The award amount of $25.8M for 1 unit (likely a large lot) is difficult to benchmark without more detail on the specific antenna element. However, the lack of competition suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding.
Public Impact
Impacts military readiness by providing essential navigation components. Supports a major defense contractor and its supply chain. Highlights potential inefficiencies in defense procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- High dollar value
Positive Signals
- Award to established contractor
- Supports critical defense function
Sector Analysis
This award falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national defense, but often involves specialized, high-cost components.
Small Business Impact
The data indicates this was not a small business award, as the contractor is Raytheon Company. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The 'DCA' award action type suggests a specific contracting office managed this. Further oversight would focus on the justification for the sole-source award and the negotiation process.
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
- Potential for inflated pricing
- Lack of transparency in price negotiation
- Long-term commitment without competitive validation
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to RAYTHEON COMPANY. ANTENNA ELEMENT PN: 11455763
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 $25.8 million.
What is the period of performance?
Start: 2008-03-21. End: 2011-03-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without specific documentation, it's impossible to confirm the validity of the sole-source justification for this $25.8M antenna element contract.
What is the expected lifespan and performance of these antenna elements?
The contract duration was 1104 days, suggesting a significant supply or development period. The performance and lifespan are critical for the operational effectiveness of the navigation systems they are part of, directly impacting military mission success.
Were there any efforts made to explore alternative suppliers or technologies before this sole-source award?
The 'NOT COMPETED' status strongly implies that no formal efforts were made to explore alternative suppliers or technologies through a competitive bidding process. This raises questions about whether the government received the best possible 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: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911N208R0042
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 350 LOWELL ST, ANDOVER, MA, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,842,510
Exercised Options: $25,842,510
Current Obligation: $25,842,510
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-21
Current End Date: 2011-03-30
Potential End Date: 2011-03-30 00:00:00
Last Modified: 2009-12-14
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