DoD Awards Raytheon $34.4M for AFATDS System to Romania, Potential for Poland

Contract Overview

Contract Amount: $34,422,513 ($34.4M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2019-12-09

End Date: 2025-06-30

Contract Duration: 2,030 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFATDS SYSTEM FOR ROMANIA WITH OPTION FOR POLAND

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to RAYTHEON COMPANY for work described as: AFATDS SYSTEM FOR ROMANIA WITH OPTION FOR POLAND Key points: 1. Significant contract value of $34.4 million for a critical defense system. 2. Sole-source award to Raytheon Company raises questions about competition and price discovery. 3. Long contract duration (2025 end date) suggests a substantial, ongoing need. 4. The system's purpose is likely to enhance battlefield communication and situational awareness.

Value Assessment

Rating: questionable

The contract is a definitive contract with a firm fixed price, which provides cost certainty. However, without competitive bidding, it's difficult to assess if this price represents the best value achievable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective solution available.

Public Impact

Enhances military interoperability and communication capabilities for allied nations. Supports U.S. foreign military sales objectives and strengthens partnerships. Potential for follow-on work or expansion to other allied countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Lack of transparency in price negotiation.
  • Long contract duration could lead to cost overruns if not managed effectively.

Positive Signals

  • Addresses a critical defense need for an allied nation.
  • Firm fixed price contract provides cost predictability.
  • Potential for future international sales and partnerships.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to manufacturing electronic computer systems. Defense IT spending is a significant portion of federal outlays, with benchmarks varying widely based on system complexity and scope.

Small Business Impact

The awardee, Raytheon Company, is a large defense contractor. There is no indication in the provided data that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight would typically involve contract performance monitoring, milestone tracking, and financial management to ensure delivery and adherence to terms.

Related Government Programs

  • Electronic Computer Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award.
  • Potential for higher costs due to lack of competition.
  • Long contract duration.
  • Limited visibility into specific system capabilities and benefits.
  • No indication of small business participation.

Tags

electronic-computer-manufacturing, department-of-defense, ma, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to RAYTHEON COMPANY. AFATDS SYSTEM FOR ROMANIA WITH OPTION FOR POLAND

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 $34.4 million.

What is the period of performance?

Start: 2019-12-09. End: 2025-06-30.

What specific capabilities does the AFATDS system provide, and how do these align with Romania's defense modernization needs?

The AFATDS (Advanced Field Artillery Tactical Data System) is designed to automate the fire support command and control process, improving situational awareness and enabling faster, more accurate targeting. For Romania, this system would likely enhance their artillery command and control capabilities, integrating them more effectively with NATO standards and improving joint operational effectiveness.

What justification was provided for the sole-source award to Raytheon, and were alternative solutions considered?

Sole-source awards typically require a justification, such as unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without the specific justification document, it's unknown if alternatives were considered or why they were deemed unsuitable. This lack of competition warrants further scrutiny to ensure fair pricing and value.

What is the projected lifecycle cost of the AFATDS system for Romania, including sustainment and potential upgrades?

The provided data only covers the initial acquisition cost of $34.4 million. The total lifecycle cost would include sustainment, training, maintenance, and potential future upgrades or modifications. Estimating this requires further information on support contracts, system longevity, and planned technological advancements, which are not detailed in this data.

Industry Classification

NAICS: ManufacturingComputer and Peripheral Equipment ManufacturingElectronic Computer Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91CRB20R5008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 225 PRESIDENTIAL WAY, WOBURN, MA, 01801

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: $34,422,513

Exercised Options: $34,422,513

Current Obligation: $34,422,513

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $874,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2019-12-09

Current End Date: 2025-06-30

Potential End Date: 2025-06-30 00:00:00

Last Modified: 2025-12-17

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