DoD awards Raytheon $76M for AN/AQS-20A Sonar Mine Detecting Sets under fixed-price incentive contract
Contract Overview
Contract Amount: $75,976,017 ($76.0M)
Contractor: Raytheon Company
Awarding Agency: Department of Defense
Start Date: 2014-02-19
End Date: 2019-02-28
Contract Duration: 1,835 days
Daily Burn Rate: $41.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: AN/AQS-20A SONAR, MINE DETECTING SET
Place of Performance
Location: PORTSMOUTH, NEWPORT County, RHODE ISLAND, 02871
Plain-Language Summary
Department of Defense obligated $76.0 million to RAYTHEON COMPANY for work described as: AN/AQS-20A SONAR, MINE DETECTING SET Key points: 1. The contract value is $75.98 million. 2. Raytheon Company is the sole awardee. 3. The contract type is Fixed Price Incentive, indicating shared risk between government and contractor. 4. The NAICS code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.
Value Assessment
Rating: good
The fixed-price incentive structure suggests a balance between cost control and contractor motivation. The award value appears reasonable for specialized defense equipment, but a direct comparison to similar systems is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a fixed-price incentive contract allows for price adjustments based on performance and cost targets.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.
Public Impact
Enhances naval mine detection capabilities, crucial for maritime security. Supports U.S. Navy operations and personnel safety. Represents investment in advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns with fixed-price incentive contracts if not managed closely.
Positive Signals
- Awarded under full and open competition.
- Utilizes a contract type that incentivizes contractor performance.
- Addresses critical defense needs.
Sector Analysis
This contract falls within the defense sector, specifically in the manufacturing of specialized navigation and detection systems. Spending in this area is driven by national security requirements and technological advancements in military hardware.
Small Business Impact
The data indicates the prime contractor is Raytheon Company, a large business. There is no information provided on subcontracting to small businesses for this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is essential to ensure contract compliance, quality, and cost-effectiveness.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole awardee.
- Fixed-price incentive contract type.
- No small business subcontracting information.
- Long contract duration (1835 days).
Tags
search-detection-navigation-guidance-aer, department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.0 million to RAYTHEON COMPANY. AN/AQS-20A SONAR, MINE DETECTING SET
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $76.0 million.
What is the period of performance?
Start: 2014-02-19. End: 2019-02-28.
What is the specific performance benchmark for the AN/AQS-20A system and how does it compare to previous generations or competitor systems?
The provided data does not detail the specific performance benchmarks for the AN/AQS-20A system. A thorough analysis would require access to technical specifications and independent testing results to compare its capabilities against established requirements and alternative solutions. Understanding these benchmarks is crucial for assessing the true value and effectiveness of the awarded contract.
What are the potential risks associated with the fixed-price incentive contract structure for this specific acquisition?
Fixed-price incentive contracts carry the risk of cost overruns if the target cost is not accurately estimated or if unforeseen technical challenges arise. For the AN/AQS-20A, this could mean the government pays more than initially anticipated if Raytheon's costs exceed the target, even with shared savings clauses. Effective oversight and realistic target setting are critical to mitigate these risks.
How does the AN/AQS-20A system contribute to the overall effectiveness of naval mine countermeasures compared to other available technologies?
The AN/AQS-20A is designed for autonomous mine detection and identification, aiming to improve the speed and safety of mine countermeasures operations. Its effectiveness is measured by its detection range, accuracy, classification capabilities, and operational tempo. A comprehensive assessment would involve comparing its mission success rates and operational impact against alternative systems and evolving threats in the maritime domain.
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: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002412R6302
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
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: $112,553,802
Exercised Options: $86,372,635
Current Obligation: $75,976,017
Subaward Activity
Number of Subawards: 101
Total Subaward Amount: $256,705,713
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-19
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 00:00:00
Last Modified: 2023-04-11
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