DoD awards $192.7M for PREDATOR REAPER aircraft manufacturing to Raytheon Company

Contract Overview

Contract Amount: $192,725,410 ($192.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-01-17

End Date: 2024-02-29

Contract Duration: 1,504 days

Daily Burn Rate: $128.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: PREDATOR REAPER

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75071

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $192.7 million to RAYTHEON COMPANY for work described as: PREDATOR REAPER Key points: 1. Significant contract value for advanced aircraft manufacturing. 2. Sole-source award to Raytheon Company raises competition concerns. 3. Fixed Price Incentive contract type introduces potential cost overruns. 4. Focus on aircraft manufacturing within the Defense sector.

Value Assessment

Rating: questionable

The contract value of $192.7M for PREDATOR REAPER aircraft manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Raytheon Company. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.

Taxpayer Impact: The absence of competition for this large contract could lead to taxpayers paying a premium for the PREDATOR REAPER aircraft.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The PREDATOR REAPER program's success is tied to a single supplier. Potential for cost overruns due to the Fixed Price Incentive contract structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Fixed Price Incentive contract
Lack of transparency in pricing

Positive Signals

Award to established defense contractor
Definitive contract type

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the Defense industry. Spending in this area is often high due to the complexity and strategic importance of military aviation.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further oversight may be needed to confirm the necessity of this procurement approach.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source procurement
Potential for cost overruns (FPI contract)
Limited transparency on pricing justification
Lack of small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $192.7 million to RAYTHEON COMPANY. PREDATOR REAPER

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 Air Force).

What is the total obligated amount?

The obligated amount is $192.7 million.

What is the period of performance?

Start: 2020-01-17. End: 2024-02-29.

What is the justification for the sole-source award of the PREDATOR REAPER contract?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. Without specific documentation, it's presumed that Raytheon possesses exclusive rights or specialized expertise essential for the PREDATOR REAPER system, making competition impractical or impossible.

What are the potential risks associated with the Fixed Price Incentive contract type for this acquisition?

Fixed Price Incentive (FPI) contracts share cost risks between the government and the contractor. While incentivizing cost control, there's a risk that the final price could exceed initial estimates if targets are missed, leading to higher costs for the government than anticipated. This requires careful monitoring of performance and cost targets.

How does the lack of competition impact the long-term value and innovation for the PREDATOR REAPER program?

A sole-source award can stifle innovation and reduce long-term value by removing the competitive pressure that drives efficiency and technological advancement. Without competing proposals, the government may not benefit from alternative solutions or cost-saving innovations that could emerge in a more open market.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 2501 W UNIVERSITY DR, MCKINNEY, TX, 75071

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: $192,725,410

Exercised Options: $192,725,410

Current Obligation: $192,725,410

Subaward Activity

Number of Subawards: 167

Total Subaward Amount: $58,433,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline