Navy awards $63M for Airborne Sonar Systems, with Raytheon Company as prime contractor

Contract Overview

Contract Amount: $63,160,779 ($63.2M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2008-04-29

End Date: 2012-03-31

Contract Duration: 1,432 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/AQS-22 AIRBORNE LOW FREQUENCY SONAR

Place of Performance

Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871, UNITED STATES OF AMERICA

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $63.2 million to RAYTHEON COMPANY for work described as: AN/AQS-22 AIRBORNE LOW FREQUENCY SONAR Key points: 1. Contract value of $63.2 million for AN/AQS-22 Airborne Low Frequency Sonar. 2. Raytheon Company secured the contract, indicating a strong position in defense electronics. 3. The contract duration of 1432 days suggests a significant, long-term need for the sonar system. 4. Awarded by the Department of the Navy, highlighting a critical capability for maritime operations. 5. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector classification places this within a specialized defense manufacturing niche. 6. Fixed-price contract type aims to control costs for the government. 7. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate process to ensure fair pricing and access.

Value Assessment

Rating: good

The contract value of $63.2 million for the AN/AQS-22 Airborne Low Frequency Sonar appears reasonable given the specialized nature of the equipment and its critical role in naval operations. Benchmarking against similar advanced sonar systems is challenging due to proprietary technology and specific mission requirements. However, the fixed-price contract type suggests an effort to establish a predictable cost structure. The contract's duration of over three years also implies a substantial investment in a key defense capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to proprietary technology, existing integration, or unique capabilities. The number of bidders is not specified, but the 'full and open' designation suggests an effort to solicit proposals from multiple qualified entities. The exclusion of sources warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The 'full and open' competition, even with exclusions, aims to leverage market forces to achieve competitive pricing for taxpayers. However, the exclusion of certain sources could potentially limit the most aggressive price reductions if those sources were key competitors.

Public Impact

The primary beneficiaries are the U.S. Navy's maritime patrol and anti-submarine warfare (ASW) capabilities. The contract delivers advanced sonar systems essential for detecting and tracking submarines and other underwater threats. Geographic impact is national, supporting naval readiness across various operational theaters. Workforce implications include skilled labor in defense manufacturing, engineering, and specialized electronics assembly, likely concentrated at Raytheon facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact long-term cost efficiency.
Reliance on a single prime contractor, Raytheon Company, for a critical defense system.
The specialized nature of the technology may create barriers to entry for future competitors.
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification is broad and may obscure specific technological dependencies.

Positive Signals

Awarded under full and open competition, indicating an attempt to maximize market participation.
Fixed-price contract type provides cost certainty for the government.
The contract supports a critical national defense capability, enhancing maritime security.
Raytheon Company is a well-established defense contractor with a proven track record.

Sector Analysis

The defense electronics sector is characterized by high R&D investment, long product lifecycles, and significant government procurement. Contracts for advanced systems like airborne sonar are typically awarded to a limited number of specialized prime contractors. The market size for defense electronics is substantial, driven by global security needs. This contract fits within the niche of specialized airborne sensor systems, a critical component of modern naval warfare capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of such systems.

Small Business Impact

There is no explicit indication of small business set-asides for this prime contract, as indicated by 'sb': false. The prime contractor, Raytheon Company, is a large business. Subcontracting opportunities for small businesses may exist within Raytheon's supply chain for components or specialized services, but this is not detailed in the provided data. The focus appears to be on large-scale prime contract performance rather than direct small business awards.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which places cost risk on the contractor. Transparency is facilitated through contract award databases, though detailed performance metrics are often considered sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Air Systems Command (NAVAIR) Procurement
Anti-Submarine Warfare (ASW) Systems
Defense Electronics Procurement
Airborne Sensor Systems
Raytheon Company Defense Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on a single large prime contractor for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.2 million to RAYTHEON COMPANY. AN/AQS-22 AIRBORNE LOW FREQUENCY SONAR

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 Navy).

What is the total obligated amount?

The obligated amount is $63.2 million.

What is the period of performance?

Start: 2008-04-29. End: 2012-03-31.

What is the specific technological advantage provided by the AN/AQS-22 Airborne Low Frequency Sonar system compared to previous generations or alternative systems?

The AN/AQS-22 Airborne Low Frequency Sonar (ALFS) system is a sophisticated dipping sonar designed for advanced anti-submarine warfare (ASW) operations. Its primary advantage lies in its ability to operate at low frequencies, which allows for greater range and improved detection capabilities in various water conditions, including challenging environments with thermal layers or high ambient noise. This system is integrated into naval helicopters, such as the MH-60R Seahawk, providing a mobile and versatile platform for submarine detection and tracking. Compared to older sonar technologies, the ALFS offers enhanced target classification, reduced false alarm rates, and greater operational flexibility. Its low-frequency acoustic propagation characteristics are optimized for detecting modern submarines, which often employ quieting technologies to evade detection by higher-frequency sonars. The system's development reflects a continuous effort to maintain a technological edge in ASW.

How does the $63.2 million contract value compare to the total lifecycle cost or previous procurements of the AN/AQS-22 system?

The provided data indicates a single contract award of $63,160,779.20 for the AN/AQS-22 system, with a duration of 1432 days (approximately 3.9 years). This figure represents a specific procurement action and does not encompass the total lifecycle cost of the system, which would include research and development, initial procurement, sustainment, upgrades, and eventual disposal. Without access to historical procurement data for the AN/AQS-22 or detailed lifecycle cost estimates from the Department of the Navy, a direct comparison is difficult. However, the value suggests a significant investment in a specialized defense asset. If this contract covers production units and associated support, it aligns with the typical high costs associated with advanced military hardware. Future contracts for sustainment, upgrades, or additional units would contribute to the overall lifecycle expenditure.

What are the key performance indicators (KPIs) used by the Department of the Navy to assess the success of this contract and the AN/AQS-22 system's effectiveness?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) used by the Department of the Navy to assess the success of this specific contract or the AN/AQS-22 system. However, in defense procurements of this nature, KPIs typically revolve around technical performance, reliability, maintainability, and operational effectiveness. For the AN/AQS-22, these would likely include metrics such as detection range and accuracy, target classification success rates, system uptime and availability, mean time between failures (MTBF), and the system's ability to operate effectively in diverse environmental conditions. Furthermore, the contractor's adherence to delivery schedules, budget constraints (especially under a fixed-price contract), and quality control standards would also be critical assessment factors. Post-delivery operational feedback from naval units utilizing the system would provide crucial insights into its real-world performance.

What is Raytheon Company's track record with similar advanced sonar or airborne electronic warfare systems, and does this influence the risk assessment?

Raytheon Company has a long and extensive track record in developing and producing advanced defense systems, including a wide range of sonar technologies, radar systems, and electronic warfare (EW) capabilities. As a major defense contractor, Raytheon has consistently secured large contracts for complex military hardware across various branches of the U.S. military and allied nations. Their experience with airborne platforms and sophisticated sensor integration is well-established. This extensive experience with similar technologies significantly reduces the program risk associated with the AN/AQS-22 contract. A proven history suggests a higher likelihood of successful development, timely delivery, and effective performance, as the company possesses the necessary technical expertise, manufacturing infrastructure, and program management capabilities. Therefore, Raytheon's track record is a positive signal, mitigating concerns about technical or execution risks.

Given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification, how does this contract fit into the broader landscape of defense spending and technological evolution?

The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) is quite broad and encompasses a wide array of components and systems that are not engine or airframe specific. The AN/AQS-22 sonar system, being an airborne sensor package, fits squarely within this category as a critical piece of auxiliary equipment for naval aircraft. This contract represents spending on specialized, high-technology defense equipment that enhances the operational capabilities of naval aviation, particularly in anti-submarine warfare (ASW). In the broader landscape of defense spending, such contracts are vital for maintaining technological superiority and addressing evolving threats. The trend in defense spending often favors advanced sensor and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities, making systems like the AN/AQS-22 a priority. This contract reflects the ongoing investment in sophisticated electronic warfare and sensor technology, which is a key area of focus for military modernization.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001907R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1847 W MAIN RD, PORTSMOUTH, RI, 02871

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: $63,160,779

Exercised Options: $63,160,779

Current Obligation: $63,160,779

Contract Characteristics

Cost or Pricing Data: YES

Timeline