DoD Awards $626M for Night Vision Equipment to Texas Instruments, Raytheon Competed
Contract Overview
Contract Amount: $626,225,513 ($626.2M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2000-03-29
End Date: 2020-10-14
Contract Duration: 7,504 days
Daily Burn Rate: $83.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200012!2100!002128!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0700CJ606 !A!*!* !20000329!20070430!160386082!007321904!007321904!N!96214!TEXAS INSTRUMENTS INCORPORATED!2501 W UNIVERSITY DR !MC KINNEY !TX!75070!45744!085!48!MCKINNEY !COLLIN !TEXAS !0001!+000030381069!N!Y!000147645406!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!A !U!J!2!001!B!* !A!N!F!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: MCKINNEY, COLLIN County, TEXAS, 75071
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $626.2 million to RAYTHEON COMPANY for work described as: 200012!2100!002128!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0700CJ606 !A!*!* !20000329!20070430!160386082!007321904!007321904!N!96214!TEXAS INSTRUMENTS INCORPORATED!2501 W UNIVERSITY DR !MC KINNEY !TX!75070!45744!085!48!MCKINNEY !COL… Key points: 1. Significant contract value of $626.2M awarded. 2. Raytheon Company was a competitor in this procurement. 3. Potential risk associated with long contract duration (7504 days). 4. Spending is within the IT/Defense sector, specifically night vision equipment.
Value Assessment
Rating: good
The contract value of $626.2M appears substantial for specialized equipment. Benchmarking against similar night vision contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The presence of a competitor like Raytheon indicates market engagement.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment.
Public Impact
Enhances military capabilities through advanced night vision technology. Supports critical defense operations requiring superior visibility in low-light conditions. Contributes to the technological advancement of military optics and electronics.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Long contract duration could lead to cost overruns or obsolescence.
- Dependence on a single awardee for critical equipment.
Positive Signals
- Awarded through full and open competition.
- Significant investment in advanced military technology.
- Contractor located in Texas, potentially supporting local economy.
Sector Analysis
This contract falls within the Defense sector, specifically for electronic equipment related to night vision. Spending benchmarks for similar specialized military electronics can vary widely based on technological sophistication and quantity.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the long duration necessitates ongoing monitoring for performance and cost control.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (7504 days).
- Potential for technological obsolescence over the contract period.
- Significant contract value requires robust oversight.
- Dependence on a single prime contractor for critical equipment.
Tags
department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $626.2 million to RAYTHEON COMPANY. 200012!2100!002128!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0700CJ606 !A!*!* !20000329!20070430!160386082!007321904!007321904!N!96214!TEXAS INSTRUMENTS INCORPORATED!2501 W UNIVERSITY DR !MC KINNEY !TX!75070!45744!085!48!MCKINNEY !COLLIN !TEXAS !0001!+000030381069!N!Y!000147645406!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!A !U!J!
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 $626.2 million.
What is the period of performance?
Start: 2000-03-29. End: 2020-10-14.
What is the specific type and capability of the 'NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA' being procured, and how does it compare to current technological standards?
The description 'NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA' suggests advanced systems capable of detecting and amplifying ambient light or emitting their own illumination for enhanced visibility. Its specific capabilities, such as range, resolution, and spectral sensitivity, would need to be detailed in the contract's technical specifications. Benchmarking against current technological standards is crucial to ensure the procured equipment is not obsolete upon delivery or shortly thereafter, maximizing its operational effectiveness and value.
Given the 7504-day duration, what are the mechanisms in place to manage potential cost increases due to inflation, material price fluctuations, or technological obsolescence?
Contracts with such extended durations typically include clauses for economic price adjustments (EPAs) to account for inflation and material cost changes. However, the effectiveness of these clauses depends on their specific terms and the prevailing economic conditions. To mitigate technological obsolescence, contracts often incorporate provisions for periodic reviews, upgrades, or phased replacements of equipment to ensure it remains relevant and effective throughout its lifecycle.
How does the performance of Texas Instruments Incorporated in fulfilling this contract align with the expected outcomes and taxpayer value, considering the competitive bidding process?
The alignment of Texas Instruments' performance with expected outcomes and taxpayer value is assessed through ongoing contract monitoring, performance metrics, and milestone achievement. While the full and open competition suggests a favorable initial price, sustained value depends on timely delivery, adherence to quality standards, and cost control throughout the contract's long duration. Post-award performance reviews and audits are critical to ensuring the government receives the intended benefits and that taxpayer funds are used efficiently.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 W UNIVERSITY DR, MC KINNEY, TX, 75071
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $626,225,513
Exercised Options: $626,225,513
Current Obligation: $626,225,513
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-03-29
Current End Date: 2020-10-14
Potential End Date: 2020-10-14 00:00:00
Last Modified: 2018-09-29
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