Raytheon Company awarded $207.5M contract for Planar Array Antenna Assemblies by the Department of the Navy

Contract Overview

Contract Amount: $207,540,761 ($207.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Defense

Start Date: 2020-05-07

End Date: 2027-07-30

Contract Duration: 2,640 days

Daily Burn Rate: $78.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PLANAR ARRAY ANTENNA ASSEMBLY IN SUPPORT OF CEC

Place of Performance

Location: SEMINOLE, PINELLAS County, FLORIDA, 33777

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $207.5 million to RAYTHEON COMPANY for work described as: PLANAR ARRAY ANTENNA ASSEMBLY IN SUPPORT OF CEC Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration spans over 6 years, suggesting a long-term need for these components. 3. Awarded under full and open competition, implying a robust bidding process. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. The contract is a definitive contract, often used for complex or long-term requirements. 6. The base award value is substantial, reflecting the critical nature of the equipment.

Value Assessment

Rating: good

The base award of $78.6M for the initial period appears reasonable given the specialized nature of antenna systems for defense applications. Benchmarking against similar complex electronic system procurements suggests this falls within expected ranges. However, the total potential value of $207.5M over the full contract term requires closer examination of task orders and option periods to ensure continued value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

The Department of the Navy benefits from the acquisition of advanced antenna systems crucial for its operations. These planar array antenna assemblies are likely integral to radar, communication, or electronic warfare systems. The contract supports advanced manufacturing capabilities within the defense industrial base. The geographic impact is centered in Florida, where Raytheon Company's operations are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if option periods are exercised without strict cost controls.
Dependence on a single contractor for a critical defense component could pose supply chain risks.
The long contract duration may require ongoing vigilance to ensure performance standards are met throughout.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, Raytheon Company, is a well-established defense contractor with significant experience.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically in the manufacturing of advanced electronic systems. The market for such specialized components is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is driven by national security needs and technological advancements in sensing and communication.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee is a large defense contractor, and the focus is on fulfilling a large-scale requirement. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Raytheon Company, as a major defense contractor, is subject to various oversight mechanisms, including audits and performance reviews. Transparency is generally maintained through contract reporting systems, though specific details of ongoing oversight are not publicly detailed.

Related Government Programs

Naval Air Systems Command (NAVAIR) procurements
Defense Advanced Research Projects Agency (DARPA) research contracts
Electronic Warfare Systems
Radar Systems Manufacturing
Advanced Antenna Technology

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on a single contractor for critical components.
Potential for cost growth in option periods if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $207.5 million to RAYTHEON COMPANY. PLANAR ARRAY ANTENNA ASSEMBLY IN SUPPORT OF CEC

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 $207.5 million.

What is the period of performance?

Start: 2020-05-07. End: 2027-07-30.

What is Raytheon Company's track record with similar antenna system contracts awarded by the Department of Defense?

Raytheon Company has a long and extensive history of supplying complex electronic systems, including antenna assemblies, to the Department of Defense and other government agencies. They are a prime contractor on numerous programs involving radar, communications, and electronic warfare. Historical data suggests a pattern of successful contract performance, though like any large contractor, they have also faced scrutiny on specific projects regarding cost, schedule, or technical performance. A detailed review of past contracts of similar scope and complexity would reveal specific instances of performance, including any significant deviations or issues encountered.

How does the awarded price compare to market rates for similar planar array antenna assemblies?

Benchmarking the price of these planar array antenna assemblies against market rates is challenging due to the highly specialized and often classified nature of defense components. However, the firm-fixed-price contract type and the competitive bidding process suggest that the price was determined through negotiation and market forces. The base award of approximately $78.6 million for the initial period, spread over several years, needs to be evaluated in the context of the specific technical requirements, performance specifications, and the limited number of qualified suppliers. Without access to detailed technical specifications and cost breakdowns, a precise market comparison is difficult, but the competitive award provides some assurance of value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if option periods are exercised without strict controls, supply chain disruptions for critical components, and technological obsolescence given the long contract duration. Mitigation strategies likely involve robust contract management by the Navy, including performance monitoring, quality assurance, and potentially incorporating clauses for managing changes. Raytheon's established supply chain and experience in defense manufacturing also serve as risk mitigation factors. The firm-fixed-price nature of the contract shifts some cost risk to the contractor.

What is the expected effectiveness of these antenna assemblies in supporting the Navy's mission objectives?

Planar array antenna assemblies are critical components for modern radar, communication, and electronic warfare systems, which are essential for the Navy's operational effectiveness. They enable advanced capabilities such as high-resolution target detection, secure and rapid communication, and sophisticated electronic countermeasures. The successful delivery of these assemblies under this contract is expected to enhance the Navy's situational awareness, command and control capabilities, and overall mission readiness in various operational environments.

What are the historical spending patterns for similar antenna systems by the Department of the Navy?

Historical spending by the Department of the Navy on advanced antenna systems and related electronic warfare/radar components has been substantial, reflecting the continuous need for technological superiority. Annual expenditures can fluctuate based on program cycles, modernization efforts, and specific platform requirements. Contracts for such specialized systems often span multiple years and can range from tens to hundreds of millions of dollars, depending on the complexity, quantity, and technological sophistication. This $207.5M contract aligns with the typical scale of investment in critical defense electronics.

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: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002419R5210

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 7887 BRYAN DAIRY RD, LARGO, FL, 33777

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: $212,645,459

Exercised Options: $207,547,061

Current Obligation: $207,540,761

Actual Outlays: $4,230,238

Subaward Activity

Number of Subawards: 244

Total Subaward Amount: $148,692,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline