DoD Awards Raytheon $314M for Marine Replacement Radar, Raising Concerns Over Competition
Contract Overview
Contract Amount: $313,835,558 ($313.8M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2020-03-26
End Date: 2025-04-30
Contract Duration: 1,861 days
Daily Burn Rate: $168.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: US MARINE REPLACEMENT RADAR
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $313.8 million to RAYTHEON COMPANY for work described as: US MARINE REPLACEMENT RADAR Key points: 1. Significant investment of $314 million for a critical defense system. 2. Sole-source award to Raytheon Company limits competitive pricing. 3. Potential for inflated costs due to lack of competition. 4. The contract falls within the IT and Defense sectors.
Value Assessment
Rating: questionable
The contract value of $313.8 million for a replacement radar system is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar advanced radar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Raytheon Company, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be overpaying for the replacement radar system.
Public Impact
Enhances US Marine Corps' situational awareness and operational capabilities. Ensures continued technological advantage in navigation and detection systems. Supports advanced military operations through reliable radar technology. Potential for long-term reliance on a single supplier for critical equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
- High contract value
Positive Signals
- Critical defense system upgrade
- Advanced technology acquisition
Sector Analysis
The Department of Defense frequently procures advanced IT and defense systems. Benchmarks for similar radar systems are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the government is receiving fair value and that Raytheon is meeting all contractual obligations.
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
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- No small business participation indicated.
- High contract value requires scrutiny.
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 $313.8 million to RAYTHEON COMPANY. US MARINE REPLACEMENT RADAR
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 $313.8 million.
What is the period of performance?
Start: 2020-03-26. End: 2025-04-30.
What is the projected operational lifespan and maintenance cost of this replacement radar system?
The contract duration is 1861 days, ending in April 2025, suggesting an initial operational period. However, specific details on the full lifespan and projected maintenance costs are not provided in the data. Further analysis would be needed to determine the total cost of ownership beyond the initial award.
Were there any attempts to explore competitive alternatives or sole-source justifications prior to this award?
The data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE-SOURCE'. This implies that a competitive process was not undertaken. A thorough review of the justification for this sole-source award would be necessary to understand if alternatives were considered and why they were deemed unsuitable.
How does the per-unit cost of this radar system compare to similar systems procured competitively by other military branches or allied nations?
Without a competitive benchmark or specific per-unit cost data, a direct comparison is challenging. The total award value of $313.8 million for one unit (no=1) suggests a high per-unit cost. Further investigation into the system's specifications and market research is required to assess its cost-effectiveness against comparable systems.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001919R0005
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $396,146,326
Exercised Options: $314,130,196
Current Obligation: $313,835,558
Actual Outlays: $3,192,474
Subaward Activity
Number of Subawards: 229
Total Subaward Amount: $55,594,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-26
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2026-01-13
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