DoD Awards Raytheon $35.8M for Spares and Software Support, Ending Jan 2026

Contract Overview

Contract Amount: $35,792,362 ($35.8M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-06-18

End Date: 2026-01-31

Contract Duration: 2,053 days

Daily Burn Rate: $17.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SPARES AND SOFTWARE SUPPORT

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46808

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to RAYTHEON COMPANY for work described as: SPARES AND SOFTWARE SUPPORT Key points: 1. Significant contract value for specialized spares and software. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (2053 days) may indicate complex support needs. 4. Focus on 'Other Communications Equipment Manufacturing' sector.

Value Assessment

Rating: questionable

The contract value of $35.8M for spares and software support is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to assess if the pricing is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if multiple vendors had competed for the contract.

Public Impact

Ensures continued operational readiness for critical communication equipment. Potential for higher costs due to lack of competitive bidding. Supports a specific segment of the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive pricing benchmarks
Long contract duration

Positive Signals

Ensures availability of critical spares and software
Supports defense readiness

Sector Analysis

This contract falls under 'Other Communications Equipment Manufacturing,' a niche within the broader defense sector. Spending in this area is critical for maintaining advanced communication systems.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery of necessary spares and software support.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated costs without competitive benchmarking.
Long contract duration may not reflect evolving technology needs.
Lack of transparency in price negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to RAYTHEON COMPANY. SPARES AND SOFTWARE SUPPORT

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 $35.8 million.

What is the period of performance?

Start: 2020-06-18. End: 2026-01-31.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The price is usually determined through negotiation and comparison with historical data or similar contract types, but without open competition, the 'fairness' can be harder to independently verify.

What are the risks associated with a long-term, sole-source contract for spares and software?

Risks include potential cost overruns due to lack of competitive pressure, vendor lock-in, and the possibility of the vendor not prioritizing this contract if other opportunities arise. There's also a risk of obsolescence if the technology isn't regularly reviewed against newer alternatives.

How does this contract contribute to the overall effectiveness of the Department of the Army's communication systems?

This contract is crucial for maintaining the operational effectiveness of specific communication equipment by ensuring the availability of necessary spare parts and ongoing software support. Without this, systems could become degraded or inoperable, impacting mission readiness.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 1010 PRODUCTION RD, FORT WAYNE, IN, 46808

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: $35,792,362

Exercised Options: $35,792,362

Current Obligation: $35,792,362

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $949,814

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline