DoD awards Raytheon $19M for Antenna Elements under sole-source contract

Contract Overview

Contract Amount: $19,000,320 ($19.0M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2011-06-03

End Date: 2013-09-30

Contract Duration: 850 days

Daily Burn Rate: $22.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ANTENNA ELEMENT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to RAYTHEON COMPANY for work described as: ANTENNA ELEMENT Key points: 1. Significant award to a major defense contractor. 2. Sole-source procurement raises questions about price discovery. 3. Contract duration of 850 days suggests a substantial project. 4. The NAICS code points to specialized instrument manufacturing.

Value Assessment

Rating: questionable

The contract's firm fixed price structure is standard, but without competition, it's difficult to assess if the $19M award represents fair market value. Benchmarking against similar sole-source procurements for specialized antenna elements would be necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract 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 may result in taxpayers paying a premium for these antenna elements.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on specialized components from a single provider. The long contract duration suggests a critical, ongoing need for these parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Firm fixed price contract
Award to established contractor

Sector Analysis

This award falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of sophisticated navigation and guidance systems. Spending in this area is critical for national security but often involves specialized, high-cost components.

Small Business Impact

This contract was awarded to Raytheon Company, a large prime contractor, and there is no indication of small business participation in the provided data.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA). Further oversight would involve reviewing the justification for the sole-source award and post-award performance monitoring.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited vendor options

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to RAYTHEON COMPANY. ANTENNA ELEMENT

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2011-06-03. End: 2013-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's needs within the required timeframe. Without specific documentation, it's presumed that Raytheon possessed unique qualifications for these specialized antenna elements.

How does the $19M price compare to similar sole-source antenna element contracts?

Benchmarking this $19M award against similar sole-source contracts for specialized antenna elements is challenging without access to a broader dataset of such procurements. However, the absence of competition inherently raises concerns about whether this price represents the best value achievable, as competitive pressures are known to drive down costs.

What is the potential risk to the DoD if Raytheon is the sole provider?

The primary risk is supply chain vulnerability and potential price escalation. If Raytheon faces production issues or significantly increases prices, the DoD has limited alternatives, potentially impacting critical defense systems. This reliance underscores the importance of robust contract management and contingency planning.

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: W911N210R0068

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,000,320

Exercised Options: $19,000,320

Current Obligation: $19,000,320

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline