DoD Awards Raytheon $18.6M for IFATDS to Georgia, Sole-Source Contract
Contract Overview
Contract Amount: $18,589,000 ($18.6M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2024-09-18
End Date: 2027-09-30
Contract Duration: 1,107 days
Daily Burn Rate: $16.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS IS AN FMS REQUIREMENT OF CASE DT-B-WAZ FOR IFATDS FOR THE COUNTRY OF GEORGIA.
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46808
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $18.6 million to RAYTHEON COMPANY for work described as: THIS IS AN FMS REQUIREMENT OF CASE DT-B-WAZ FOR IFATDS FOR THE COUNTRY OF GEORGIA. Key points: 1. Significant award for Georgia's defense capabilities via FMS. 2. Sole-source nature raises questions about price discovery. 3. Long contract duration (over 3 years) warrants close monitoring. 4. Focus on critical navigation and guidance systems.
Value Assessment
Rating: fair
The contract is firm-fixed-price, which provides cost certainty. However, without competition, it's difficult to benchmark against market rates for similar IFATDS systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This 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 a higher cost to the U.S. taxpayer, as there was no market pressure to drive down prices.
Public Impact
Enhances Georgia's military operational effectiveness through advanced technology. Supports U.S. foreign military sales objectives and international partnerships. Potential for follow-on support and sustainment contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long-term contract duration.
- Foreign Military Sales requirement may obscure domestic cost benchmarks.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Supports a key U.S. ally's defense modernization.
Sector Analysis
This award falls within the Defense sector, specifically related to advanced electronic systems manufacturing. Spending benchmarks for similar specialized defense electronics can vary widely based on technology and quantity.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Larger defense contracts are often awarded to prime contractors who may then subcontract.
Oversight & Accountability
As a sole-source award for a foreign military sale, oversight will focus on ensuring the necessity of the system, fair pricing within the sole-source context, and adherence to FMS program guidelines.
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
- Lack of competition may lead to inflated pricing.
- Long contract duration increases exposure to potential cost changes or performance issues.
- Foreign Military Sales can sometimes lack the transparency of domestic procurements.
- Dependence on a single supplier for critical defense technology.
Tags
search-detection-navigation-guidance-aer, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to RAYTHEON COMPANY. THIS IS AN FMS REQUIREMENT OF CASE DT-B-WAZ FOR IFATDS FOR THE COUNTRY OF GEORGIA.
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 $18.6 million.
What is the period of performance?
Start: 2024-09-18. End: 2027-09-30.
What is the justification for the sole-source award of the IFATDS system to Raytheon?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or existing system integration requirements where only one vendor can meet the specific needs. For FMS cases, specific justifications are often tied to interoperability with existing U.S. systems or unique national security requirements of the partner nation.
How does the firm-fixed-price contract mitigate risks associated with a sole-source award?
A firm-fixed-price (FFP) contract shifts most of the cost risk to the contractor, providing budget certainty for the buyer. While it doesn't address the potential for overpayment due to lack of competition, it protects against cost overruns if the contractor's actual costs exceed their bid.
What is the potential long-term taxpayer impact of sole-source FMS contracts for specialized defense systems?
Sole-source FMS contracts can have a long-term impact if they establish a precedent for future sole-source awards or if the pricing is not rigorously scrutinized. While FFP offers budget certainty, the absence of competition can lead to higher unit costs over time, potentially increasing the overall financial burden on U.S. taxpayers if not managed effectively.
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: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 22 COTTON RD STE B, NASHUA, NH, 03063
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: $18,589,000
Exercised Options: $18,589,000
Current Obligation: $18,589,000
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $3,089,199
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-18
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 12:09:00
Last Modified: 2025-11-12
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