DoD's $359M F-18 Radar Warning Receiver Contract with Raytheon Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $359,025,909 ($359.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2009-05-01
End Date: 2019-12-19
Contract Duration: 3,884 days
Daily Burn Rate: $92.4K/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: FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM.
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117
Plain-Language Summary
Department of Defense obligated $359.0 million to RAYTHEON COMPANY for work described as: FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM. Key points: 1. The contract awarded to Raytheon Company for the F-18 ALR-67(V)3 Radar Warning Receiver program totals $359 million. 2. Competition was full and open after exclusion of sources, suggesting a potentially limited but justified approach. 3. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is critical for defense. 4. Potential risks include ensuring fair pricing and effective oversight given the long contract duration and sole-source aspects.
Value Assessment
Rating: questionable
The contract's total value of $359 million over nearly a decade requires careful examination against similar radar warning receiver systems. Benchmarking is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific justification for limiting the competitive pool. This method can impact price discovery and potentially lead to higher costs if not managed rigorously.
Taxpayer Impact: Taxpayer funds are allocated to a critical defense system. Ensuring the best possible price through robust oversight is paramount to maximizing value for money.
Public Impact
Ensures the continued operational readiness of the F-18 fighter jet fleet. Supports advanced threat detection capabilities for naval aviation. Represents a significant investment in specialized defense electronics manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification
- Long contract duration
- Lack of detailed cost breakdowns
Positive Signals
- Critical defense system upgrade
- Established contractor with relevant experience
Sector Analysis
This contract falls within the Defense sector, specifically in the manufacturing of advanced electronic systems for aircraft. Spending in this area is driven by national security needs and technological advancements in threat detection.
Small Business Impact
The data indicates the award went to Raytheon Company, a large prime contractor. There is no explicit information on small business subcontracting within this specific data point, which warrants further investigation.
Oversight & Accountability
The contract's duration and value necessitate strong oversight from the Department of the Navy to ensure performance, cost control, and adherence to contract terms. Regular reviews and audits are crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Risk of technological obsolescence over the long contract period.
- Need for detailed cost justification for the exclusion of sources.
- Ensuring effective oversight for a decade-long contract.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $359.0 million to RAYTHEON COMPANY. FRP 11 OF THE F-18 ALR-67(V)3 RADAR WARNING RECEIVER PROGRAM.
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 $359.0 million.
What is the period of performance?
Start: 2009-05-01. End: 2019-12-19.
What specific technological advancements justify the exclusion of other potential sources in this 'full and open competition after exclusion' scenario?
The exclusion of sources likely stems from unique technological requirements, proprietary data, or specialized manufacturing capabilities held by Raytheon for the ALR-67(V)3 system. A detailed justification should outline why only Raytheon could meet these specific, advanced performance parameters for the F-18's radar warning receiver.
How does the $359 million total contract value compare to the lifecycle cost of similar radar warning systems across different platforms or services?
Benchmarking this $359 million contract against similar systems is challenging without detailed cost breakdowns and performance metrics. A comparative analysis would require assessing the system's capabilities, lifespan, and maintenance costs against other platforms' radar warning receivers to determine if the price reflects fair market value.
What mechanisms are in place to ensure ongoing cost-effectiveness and prevent potential cost overruns throughout the contract's nearly decade-long duration?
Given the long duration, robust oversight mechanisms are critical. These should include regular performance reviews, audits of expenditures, and potentially incentive structures tied to cost savings or performance improvements. The firm fixed-price nature offers some cost certainty, but vigilance is needed to manage scope creep and unforeseen issues.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001908R0045
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6380 HOLLISTER AVE, GOLETA, CA, 93117
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $359,025,909
Exercised Options: $359,025,909
Current Obligation: $359,025,909
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-05-01
Current End Date: 2019-12-19
Potential End Date: 2019-12-19 00:00:00
Last Modified: 2019-12-19
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)